Income Tax – Cybersecurity Technology and Service Tax Credit – Alterations

HB 290 creates a refundable tax credit called the "Buy Maryland Cybersecurity Tax Credit" for Maryland businesses and nonprofits with fewer than 50 employees that purchase cybersecurity technology or services from qualifying Maryland-based cybersecurity companies. The credit covers 50% of qualifying costs, with a $50,000 annual limit per buyer and a $1 million annual cap per seller. Eligible sellers must be headquartered in Maryland, have under $10 million in annual revenue, and meet specific ownership criteria (e.g., minority-, woman-, or veteran-owned) or be located in a designated business zone. The credit expires for taxable years beginning after December 31, 2030, and is refundable if the credit exceeds the buyer's income tax liability.