Maryland Research and Development Tax Credit
Maryland's R&D Tax Credit provides income tax credits for qualified research and development expenses incurred in Maryland.
About this program
The Maryland Research and Development Tax Credit provides a state income tax credit to businesses with qualified R&D expenditures in Maryland. Applications for Tax Year 2025 are scheduled to be available from June 1, 2026, through November 15, 2026. The credit equals 10% of eligible Maryland R&D expenses above the Maryland base amount, subject to statutory caps, with a $12 million total cap, a $3.5 million small business set-aside, and a maximum of $250,000 per applicant.
Eligibility
Businesses with qualified research and development expenses incurred in Maryland; small business refundability is limited to for-profit entities with net book value assets under $5 million.
Requirements
- Business must incur qualified research and development expenses in Maryland.
- Qualified research must follow the federal definition under Internal Revenue Code Section 41.
- Application must be submitted to Maryland Commerce by November 15 for the prior tax year.