Thursday, March 17, 2011
Bill Would Create Uncertainty Around Tax Credits
If your company receives State tax credits, listen up. Legislation that would subject many tax credits to automatic termination every five years unless reenacted by the General Assembly is gaining momentum in the House of Delegates.
A subcommittee of the House Ways & Means Committee is working on a bill (HB 620) that would require a wide range of credits under the income, franchise and premiums taxes be evaluated by a joint committee every five years and be subject to automatic termination unless reenacted by the General Assembly.
The Maryland Chamber opposes this bill because it would eliminate the benefit of many important economic development incentives as marketing tools for Maryland. “The usefulness of these economic development incentives would be eliminated if the programs were automatically subject to termination every five years,” Maryland Chamber Vice President of Government Affairs Ron Wineholt said. “What employer would invest in an enterprise zone location if the tax credits were subject to automatic termination next year?”
While it’s appropriate for the General Assembly to evaluate these programs, the Maryland Chamber believes there is a better way accomplish the bill’s objectives. In fact, the Maryland Business Tax Reform Commission recommended the creation of a workgroup to work with lawmakers, taxpayers and other stakeholders to ensure that incentives are measurable and cost effective.
For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
