Tax Credits - The Montgomery County Chamber supports the business tax credits that do the most to attract new businesses and retain existing businesses in the State of Maryland. We believe these incentives should be competitive with our neighboring States in order for Maryland to remain economically vibrant.

HB 38	Income Tax-Credit for Providing Adult Literacy Programs. Provides an adult literacy services tax credit program, to which the Governor may appropriate at least $2 million, beginning in FY 2009, FY 2010, and FY 2011. Business and non-profits may receive a tax credit equal to the less of: (1) 35% of the cost of adult literacy instruction provided by the business to its employees; (2) $150 per employee that receives adult literacy instruction; or (3) $25,000.	Hixson, et al	SUPPORT
HB 154	Income Tax Credit for Employer-Provided Child Care for Employees. Provides employers with a 25% tax credit for expenses paid to provide on-site child care for employees. The credit may be carried forward.	Minnick, et al	SUPPORT
HB 347	Tax Credit for Cost of Employee Child Care Expenses. Provides employers with a 25% tax credit for costs incurred for employee child care expenses. Eligible expenses are for employees whose income is at or below the median income for the State, if the employer pays at least 10% of the child care expenses.	Queen Anne's Del.	SUPPORT
HB 46 SB 232	Income Tax-Research and Development Tax Credit-Modifications. Increases the aggregate amount of R&D credits from $3 million to $5 million for the 3% base amount credit, and from $3 million to $7 million for the 10% in excess of the base amount credit.	King, et al Hogan, et al	SUPPORT
HB 1197	Business and Economic Development-Maryland Research and Development Tax Credit. Continues in operation the State R&D Tax Credit, if the federal R&D tax credit is repealed.	DBED-Deptal
HB 142	Biotechnology Investment Incentive Act. Investors are not eligible for tax credits, if their investment allows them to control more than 20% of the biotech company; alters the maximum tax credit value from a maximum dollar amount to 10% of the Reserve Fund for an individual and the lesser of $2 million or 20% for corporations and venture capital firms; credits can be claimed in the third tax year at a rate of 1/3 per year and unused credits may be carried forward eight years.	Morhaim, et al
HB 1007	Biotechnology Investment Tax Credits. Allows insurance to invest in biotech companies and claim a credit against the insurance premium tax; expands the investment tools to include cash and debt that is convertible into stock or other ownership interest; makes ineligible investors who own more than 25% of the company; and establishes an aggregate tax credit amount of $2 million and increases from $250,000 to $1 million the maximum credit amount for a venture capital firm.	Feldman
HB 215 SB 428	Corporate Income Tax-Tax Credit for Location in a Higher Education-Affiliated Research Park. Provides for up to $4 million annually in tax credits associated with the cost of a company locating in a higher education-affiliated research park (includes community colleges). The maximum credit for an individual business is $50,000; the credits are transferrable and may carryover for a period of three years.	Morhaim & Feldman McFadden	SUPPORT SUPPORT
HB 327 SB 705	Property Tax-Exemption for Property Used as a Publicly Sponsored Business Incubator. Exempts from the property tax business incubators owned, controlled or leased by a public entity or provides 50% of the funding (less rents).	Feldman, et al Forehand	SUPPORT

Taxes - The Chamber supports the following guiding principles that have determined our positions on the tax bills below.

• Fiscal responsibility – The state should make every effort to reduce spending and find efficiencies within government before raising taxes.
• No new spending mandates without accompanying funding plan.
• Taxes should not focus on one industry or sector in order to maintain Maryland’s competitive advantage relative to neighboring states.
• Tax revenues should be distributed to jurisdictions in a way that appropriately reflects the State’s tax base.
• Any new taxes should be part of a comprehensive solution and should not be approved in a piece meal fashion.

SB 393	Corporate Income Tax Reform-Combined Reporting. Requires unitary groups of a corporation to compute its Maryland taxable income using the combined reporting method.	Pinsky	OPPOSE
HB 553	Corporate Income Tax Reform. Imposes the combined reporting method of corporate tax computation for an affiliated group of companies. Has varying financial ramifications for multi-state corporations.	Ross, et al	OPPOSE
SB 395	Income Tax-Corporations-Denial of Deduction for Excessive Compensation of Officers and Directors. Subjects compensation, excluded from federal income taxation, paid to corporate officers and directors in excess of 30 times the compensation paid to the lowest full time employees to the MD income tax.	Pinsky & Madaleno	OPPOSE
HB 448	Sales and Use Tax-Services. Imposes the 5% sales tax to various services, including: cable TV, auto repairs and services, parking, haircuts, tanning, gym memberships, engineering services, storage, shoe repairs, tax preparation, dating and dieting services, direct mail advertising, commercial art, exterminating, employment agencies, PR, management consulting, real property management, interior decorating, notary publics, independent lecture bureau, business brokerage, auctioneering, etc. Generates approximately $500 million in new taxes.	Gilchrist, et al	OPPOSE
HB 1022	Sales and Use Tax-Services. Imposes the 5% sales tax to various services, including: tanning, storage, tattoo or body piercing, swimming pool or hot tub cleaning, and interior decorating.	Ross	OPPOSE
HB 846	Sales & Use Tax-Rate-Education Trust Fund. Increases the 5% sales tax to 6% and dedicates the increase to Thornton education funding. Generates approximately $600 million for education funding.	Simmons	OPPOSE
SB 420	Task Force to Study the Needs and Expenditures of State Programs. Establishes an 18-member TF (4 House; 4 Senate; 4 Executive branch; and 6 public, 3 of which representing non-profits) to study the funding needs of State government and the services it provides. The TF shall submit an interim report by the end of 2007 and the final report by the end of 2008.	Madaleno	NO POSITION
HB 1053	Business Entities—Annual Report-Fees. Increases from $300 to $1,000 the cost incurred by corporations, REITs and LLCs in connection with filing an annual report; and provides a $500 income tax credit for the filing fee paid.	Hucker	OPPOSE
SB 616	Land Preservation and School Construction Act of 2007. Imposes the transfer and recordation tax on a change in more than 80% of the ownership or control of real estate entities valued at $500,000 or more.	Currie, et al	OPPOSE
HB 475	Public School Construction Assistance Act of 2007. Imposes the transfer and recordation tax on a change in more than 80% of the ownership or control of real estate entities valued at $1 million or more.	Healey, et al	OPPOSE
HB 1220 SB 901	Chesapeake Bay Green Fund. Beginning Jan 1, 2008, imposes an impervious surface fee on all new construction in the amount of $.25 per square ft. in priority funding areas and $2 per square ft. outside of priority funding areas; allows for up to a 25% reduction in the fee for implementation of low impact development, such as porous pavers, green roofs, or maintenance of natural infiltration capacity; the fee is paid at the time the grading or building permit is issued; fees are dedicated to a variety of environmental programs to address water quality in the Chesapeake Bay, including agricultural runoff; no fee applies to government projects, but mitigation that results in net benefits to water quality are required. Initial estimates indicate the fee will generate $131 million.	McIntosh, et al Conway, et al	OPPOSE
SB 402 HB 518	Municipal Corporations-Hotel Rental Tax. Authorizes municipalities to impose a tax not to exceed 3% on hotel room rates.	Hogan, et al Barve, et al	OPPOSE