There’s excellent news for Maryland businesses and it comes in the form of a tax credit.
If your business has purchased cyber security goods or services from a Maryland cyber security company, congratulations. You’ve taken a smart step toward protecting your business from hackers. The promising news doesn’t stop there. There’s also a strong chance you’ll be eligible for a tax credit.
Called the Buy Maryland Cybersecurity (BMC) Tax Credit, this new credit “provides an incentive for Qualified Maryland Companies to purchase cybersecurity technologies and services from a Qualified Maryland Cybersecurity Seller. Qualified Maryland Companies may claim a tax credit for 50% of the net purchase price of cybersecurity technologies and services purchased from a Qualified Maryland Cybersecurity Seller,” according to the Maryland Department of Commerce’s website.
Things to know about the BMC tax credit:
- You can claim up to $50,000 in tax credits in a single year on a first come first served basis.
- The tax credit must be claimed for the tax year in which a purchase is made.
- A Qualified Maryland Company is defined as one that has fewer than 50 people and is required to file a tax return in Maryland.
Investors of Maryland Cyber Companies Will Benefit Too
The good news isn’t just for those who purchase cyber security services.
If you invest in a cyber security company in Maryland, you could qualify for the Cybersecurity Investment Incentive Tax Credit (CIITC).
Specifically, if you invest $25,000 or more in a cyber security business that has less than 50 employees, you might be eligible for a refundable tax credit for one-third of your investment. If you back a cyber security business in Allegany, Dorchester, Garrett or Somerset County, that credit increases to 50%.
Things to know about the CIITC:
- You must submit an application for the credit at least a month before your investment
- There is a $250,000 limit per investor within a fiscal year
3 Reasons Why You Should Support Maryland Cyber Security Companies
If your business hasn’t yet worked with a Maryland cyber security company, now is the time to start. Here’s why:
- You could be eligible for the tax credits described above, adding more money back to your bottom line.
- Taking steps to protect your organization from a hack or cyber attack is just smart business. If you think your organization is too small to be the target of a hack, you’ll want to read this blog post from our cyber security experts.
- You’ll be supporting Maryland’s business community. The tax credit was created, in part, to help promote Maryland’s cyber security industry.
Need Help?
To find out whether you or your business qualifies for either tax credit, our tax team can help. Call us at 800.899.4623 or contact us online.
If you want to protect your business from a cyber attack — and possibly benefit from a tax credit in the process — Gross Mendelsohn’s Technology Solutions Group can help. Call us at 800.899.4623 or contact our cyber security team online.
