Biotechnology Investment Incentive Tax Credit (BIITC)

​​BIITC provides an investor with income tax credits equal to 50% of an eligible investment in a Qualified Maryland Biotechnology Company (QMBC). The program supports investment in seed and early stage biotech companies to promote and grow the biotech industry in Maryland.

Click here​​ for the unofficial Fiscal Year 2015 Queue as of July 1, 2014. 

Please continue to check this website as well as www.bio.maryland.gov for the most recent information regarding the availability of tax credits.

BENEFIT

BIITC provides an income tax credit equal to 50% of an eligible investment in a QMBC up to $250,000 for each QMBC per fiscal year. Total credits issued during the fiscal year cannot exceed the budget amount and are, therefore, issued on a first come basis. The credit is refundable if the investor has no Maryland income tax liability. 

ELIGIBILITY

  • Qualified investor is an individual or any entity that invests at least $25,000 in a QMBC and is required to file an income tax return in any non-tax haven jurisdiction.  An investor is limited to a credit of $250,000 for each QMBC per fiscal year.
  • QMBC is a company that (1) has its headquarters and base of operations in Maryland; (2) has fewer than 50 employees; (3) is in active business no longer than 10 years (up to 12 years if in the process of regulatory approval) and once certified as a QMBC, may remain eligible for a qualified investment for up to 10 years; and (4) certified by DBED as a QMBC.

A single QMBC may not receive for the benefit of investors, in total no more than 15% of the program's fiscal year funding. 

APPLY

Beginning on June 2, 2014, DBED will be accepting applications to enable participation in the electronic filing process that will take place on July 1, 2014. Please submit your application plus attachments via courier or by mail to DBED, Tax Incentive Group, World Trade Center, 401 E. Pratt Street, 17th Floor, Baltimore, Maryland 21202.

Investors making qualified investments in QMBCs in Montgomery County, Maryland, in addition to receiving Maryland's Biotechnology Investment Incentive Tax Credit, may receive a payment from the County's Supplemental Program. The program is subject to appropriation of funds. For more details, please contact the Montgomery County Department of Economic Development's Gene Smith at (240) 777-2011 or Bernadette Goovaerts at (240) 777-2045

To qualify for the credit complete and submit the Maryland Biotechnology Investor Incentive Tax Credit application forms to DBED. Include Investor Form (Form A1, A2 or A3) and the QMBC Form (Form B).

2014 Investor Application Forms:

Individual Investors: Download Form A1 
Corporate Investors: Download Form A2
Pass-Through Entities: Download Form A3 

2014 QMBC Application Form:        

Form B​ – Multiple Attachments 11- Form B does not have to be completed for investors in prospective a QMBC if a current Form B is on file with DBED and is 30 days old or less.

Certification Process

  1. Users must have Javascript and Abobe Flash plugins to view official clock and Recaptcha verification.
  2. June 2, 2014, completed applications with all attachments will be accepted at the DBED offices located at DBED, Tax Incentives Group, World Trade Center, 401 East Pratt Street, 17th Floor, Baltimore, MD 21202. A User Name and Reference Number will be issued within 48 hours, except applications received after June 27, 2014 will have a User Name and Reference Number issued after July 1, 2014.
  3. The second step of the application process will require that the User Name and Reference Number be used to electronically complete the submission beginning at 9:00 am EDT on July 1, 2014 through the website located at www.mdbiotaxcredit.org.  Submission order of the applications will be determined by "first come first served" based ONLY on the electronic submission of the User Name and Reference Number. No physical application can be filed for purposes of the ordering of first come first served.  
  4. Multiple submissions by an applicant using the same user name and reference number will be considered filed at the date and time of the LAST submission. This rule is to maintain that the application procedure is as fair and equitable as possible.
  5. Any decision made by DBED during the application process is considered final.

Applications are reviewed and approved based on the order received. At least 30 calendar days but no more than 60 calendar days prior to making a qualifying investment, the qualified investor submits a completed application to DBED. Within 30 calendar days of receiving the application, DBED will issue an initial tax credit certificate certifying the amount of any approved tax credits to a Qualified Investor or offer rejection. A qualified investor has 30 days after the date DBED issues the tax credit to make an investment in QMBC. Within 10 days of making the investment, the qualified investor shall provide written notice with supporting documentation to DBED. If the qualified investor fails to provide notice of investment to DBED within 40 days after the issuance of the initial tax credit certificate DBED shall rescind the certificate. Based on the actual investment DBED shall issue a final tax credit certificate.

Note: If a login window opens prompting you to input a user name/password, simply close the login window to continue to open the form. Once the form is open, please remember to save it to your computer before changing or completing the form.

RESOURCES

​CONTACT

For more information about BIITC contact:

Mark A. Vulcan, Director, Tax Incentives
DBED, Office of Finance Programs
MVulcan@choosemaryland.org
(410) 767-6438
(877) 821-0099

Stacy Kubofcik, Tax Specialist
DBED, Office of Finance Programs
SKubofcik@choosemaryland.org
(410) 767-4980
(877) 821-0099​

FREQUENTLY ASKED QUESTIONS

  • What is active business for a biotechnology company?
    • ​“Active business” means that the Department can reasonably determine and establish the nature of the Company’s commercial biotechnology research, development or production operations. The mere legal organization, appointment or election of officers or managers, initial capitalization, and establishment of business offices of a company, alone or in combination, are not sufficient to establish that the company is engaged in active business for the purposes of this tax credit.

  • How does the 2013 legislation affect the program?
    • ​The 2013 legislation extends the program for a Qualified Maryland Biotechnology Company (QMBC) for up to 10 years.

      A QMBC has (1) its headquarters and base of operations in Maryland; (2) fewer than 50 full-time employees; (3) been in active business no longer than 10 years (up to 12 years in the process of regulatory approval) and once certified as a QMBC, a QMBC may remain eligible for qualified investment for up to 10 years; (4) no securities publicly traded on any exchange; and (5) been certified as a QMBC by DBED.

  • Who are the essential employees in order for a biotechnology company to be certified?
    • ​The company must have at least one full-time employee engaged in biotechnology research in Maryland.

  • Who should I contact with more questions?
    • ​Please contact Mark A. Vulcan, Program Manager at (410) 767-6438.