Small Business Relief Tax Credit

Small Business Relief Tax Credit

Offers Maryland small employers support through the Small Business Relief Tax Credit for paid sick and safe leave.

Eligibility · United States · US-MD

The Small Business Relief Tax Credit was a Maryland tax credit programme administered by the Maryland Department of Commerce to help small employers offset the cost of providing paid sick and safe leave under the Maryland Healthy Working Families Act. The credit was worth up to $500 per qualifying employee or $7,000 per business per tax year, whichever was lower. The programme is currently closed: Commerce is not accepting applications, and no reopening date has been announced.

Historically, eligible applicants were small businesses with 14 or fewer employees whose primary work location was in Maryland. To qualify, the employer had to provide paid sick and safe leave as required by the Maryland Healthy Working Families Act, and the covered employees had to earn no more than 250% of the federal poverty guideline — equivalent to approximately $36,450 per year or $17.52 per hour for Tax Year 2023. Applications required documentation of good standing from SDAT, a Comptroller tax clearance certificate, and employee records (W-2s, pay stubs, paid leave statements). Commerce certified applications within 45 days, and businesses then filed Maryland Tax Form 500CR with the Comptroller to claim the credit.