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SB 247

Biotechnology Investment Incentive Tax Credit - Conversion to Grant Program

2026 Regular Session Introduced by Malcolm Augustine and 8 co-sponsors

Maryland converts biotech investment tax credits to direct state grants, shifting from tax-based incentives to appropriated grant funding for qualifying biotechnology companies.

Third Reading Passed
0
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Bill Summary · SB 247

Legislative bill overview

SB 247 converts Maryland's existing biotechnology investment incentive tax credit into a direct grant program. Instead of allowing biotech companies to claim tax credits against their state tax liability, the state would directly award grants to qualifying biotechnology firms that meet specified investment and job creation thresholds.

Why is this important

This shift from tax credits to grants changes how Maryland incentivizes biotechnology development and affects state revenue collection. Direct grants provide immediate capital to biotech companies without requiring them to have tax liability, potentially making the incentive more accessible to startups and early-stage firms while giving the state more predictable budget impacts and control over fund distribution.

Potential points of contention

  • Budget predictability vs. competitive pressure: Grants require upfront appropriations, making costs easier to predict but potentially limiting the number of companies that can be supported compared to open-ended tax credits. This could disadvantage companies that miss funding windows.
  • Administrative burden and fairness: Converting to a grant program requires state officials to evaluate and select recipients, introducing subjective decision-making and potential concerns about favoritism or inconsistent application of criteria.
  • Economic competitiveness: Other states may retain more generous tax credit structures, potentially making Maryland's biotechnology incentive less attractive to companies deciding where to locate or expand operations.

Compiled from official sources — confirm details with the bill’s official record.

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