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HB 400

Biotechnology Investment Incentive Tax Credit - Conversion to Grant Program

2026 Regular Session Introduced by Mark Chang

Maryland converts biotechnology investment tax credits into a direct grant program to provide faster capital allocation and improve state budget predictability.

Hearing 2/12 at 1:00 p.m.
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Bill Summary · HB 400

Legislative bill overview

HB 400 converts Maryland's existing biotechnology investment incentive tax credit into a direct grant program. Rather than allowing biotech companies to claim tax credits against their state tax liability, the state would directly award grants to qualifying biotechnology businesses for research, development, and expansion activities.

Why is this important

This shift from tax credits to grants changes how Maryland allocates roughly $50-100+ million annually (depending on historical credit usage) to biotechnology incentives. Direct grants provide faster capital infusion to companies, improve state budget predictability, and allow more targeted allocation of funds. However, this also represents a significant change in the state's tax incentive structure that could affect business planning and competitiveness for biotech recruitment.

Potential points of contention

  • Budget impact clarity: Converting tax credits to grants removes revenue loss uncertainty but creates new direct spending; fiscal impact needs clear baseline data on current credit utilization
  • Award criteria and transparency: Shift raises questions about how grants will be allocated—will criteria be merit-based, job-creation focused, or geographic?—and whether the process will be transparent and competitive
  • Business predictability: Companies accustomed to tax credits may face uncertainty during transition; smaller firms might struggle with grant application processes compared to larger competitors

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

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