The Senate Budget & Taxation Committee heard legislation today that would allow an individual or corporation to claim an income tax credit for costs incurred to obtain a federal security clearance.
The Maryland Chamber supports the bill. It would help defense contractors in Maryland meet the significant demand for qualified employees who have appropriate federal security clearances. “With the large presence of military and federal security installations in Maryland, these jobs are an important part of our economy,” Maryland Chamber Vice President of Government Affairs Ron Wineholt said.
The legislation, SB 296, is sponsored by Senator Roger Manno and has broad bipartisan support. The Maryland Chamber suggested two amendments. The first was to place cap on the amount of expenses per employee that could be claimed. This would make it less likely that one large employer could claim a disproportionate amount of the credits to the detriment of smaller employers.
The second suggested amendment would adjust the language to allow for more business entity types to qualify. As drafted, the bill would allow individuals and corporations to apply. The Chamber suggests that the language be clarified to apply to other entities like LLCs, etc.