Cybersecurity Investment Incentive Tax Credit

Beginning January 1, 2014 Maryland provides a refundable tax credit equal to 33% of an eligible investment to Qualified Maryland Cybersecurity Companies (QMCCs) that seek and secure investment from an in-state or out-of-state investor.

The program appropriations for FY 2014 are $3 million, with a minimum appropriation per year through July 1, 2019 of $2 million. The maximum allowable credit is $250,000 per QMCC and cannot equate to more than 15% of the total program appropriation in a single fiscal year.

The purpose of this new program is to incentivize and attract cybersecurity companies to start up in or move to Maryland; and to attract investment to cybersecurity companies in order to help them grow, create jobs and retain intellectual property in Maryland; with a minimum investment of $25,000 and investment retention of at least 3 years. Companies may participate for 2 years in the program.

Cybersecurity technology as defined by this program means products or goods intended to detect or prevent activity intended to result in unauthorized access to, exfiltration of, manipulation of, or impairment to the integrity, confidentiality, or availability of an information system or information stored on or transiting an information system.

Additionally, Montgomery County in Maryland also passed legislation to offer a local supplement to Maryland Cybersecurity Investment Incentive Tax Credit to QMCCs that receive a final Maryland tax credit certificate and have their headquarters and base of operations in Montgomery County.

If you are a QMCC with headquarters and base of operations in Maryland; organized for profit and engaged primarily in the development of innovative and proprietary cybersecurity technology; with fewer than 50 employees; in active business no longer than 5 years; no publicly traded securities on any exchange; and certified as a cybersecurity company by DBED, contact Walton for assistance in obtaining this valuable refund credit.

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