R&D Tax Credit

Businesses that have qualified Research & Development (R&D) expenditures in Maryland may qualify for two state income tax credits, the Basic R&D Tax Credit and the Growth R&D Tax Credit. The tax credit remains in effect until January 1, 2020, subject to extension by the General Assembly.

Basic R&D Tax Credit

Three percent of eligible R&D expenses that do not exceed the Maryland Base Amount. If the total credits applied for exceed $4.5 million, the business’s Basic tax credit is prorated.

Growth R&D Tax Credit

Ten percent of eligible R&D expenses in excess of the Maryland Base Amount. If the total credits applied for exceed $4.5 million, the business’s Growth R&D tax credit is prorated.

For more information, please visit commerce.maryland.gov