Maryland Research and Development Tax Credit

The Maryland Research and Development Tax Credit, under the Maryland Department of Commerce, rewards companies that spend on qualified research inside Maryland. It is a state tax credit, not a cash grant, and it is designed to lower the cost of experimental work that meets the federal definition of R&D. The program runs each year and carries a statutory sunset of June 30, 2027 unless lawmakers extend it. Eligible businesses can claim 10 percent of qualified expenses above the Maryland base amount. The annual pool is capped at $12 million, with $3.5 million reserved for small businesses, and no company may receive more than $250,000 in a tax year. Applications open June 1 and close November 15 for the tax year, with certifications issued by February 15 of the following year. This credit suits for-profit companies with real lab, prototype, or development spend in Maryland, especially when federal R&D treatment already exists and expenses can be documented cleanly. The best submissions are organized, conservative on the numbers, and aligned to the state's filing window. Because the credit can be carried forward for seven years, it also matters for firms that can use the value over time rather than immediately.

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.