Biotechnology Investment Incentive Tax Credit (BIITC) provides an investor with income tax credits equal to 50 percent 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.
BIITC provides an income tax credit equal to 50 percent 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.
Convertible debt created on or after July 1, 2015 will qualify for the Biotechnology Investment Incentive Tax Credit provided that the conversion to equity ownership (common or preferred stock) occurs within 30 days after the issuance of an Initial Tax Credit Certificate by the Maryland Department of Commerce and prior to the request for a Final Tax Credit Certificate. After June 30, 2016, convertible debt must have been created within one year prior to the date of an investor’s application for a Biotechnology Investment Incentive Tax Credit.
For more information, please visit commerce.maryland.gov