Monday, February 20, 2012
Legislation Threatens Business Tax Credits
Legislation that would subject important business tax credits to automatic termination every five years unless reenacted by the General Assembly will be heard by the House Ways and Means Committee next week.
Similar legislation passed the House of Delegates last year by a vote of 100-38. Thankfully, the Senate Budget and Taxation Committee rejected the bill on a 10-2 vote. This session, the bills, SB 739/HB 764, are gaining momentum and have picked up sponsors from both parties.
The Maryland Chamber opposes the legislation. Subjecting important job incentives like enterprise zones and the R&D and biotech tax credits to automatic termination would compromise their effectiveness. While it’s appropriate for the General Assembly to evaluate the effectiveness of business tax credits, it shouldn’t do so in a way that creates uncertainty for Maryland’s job creators.
“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?”
The legislation will be heard Tuesday, February 28, at 1 p.m. If this bill will impact your business, join us in Annapolis for the hearing. For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
