Md. Code, Economic Development § 6-305
This is the official text of Md. Code, Economic Development § 6-305, part of Maryland’s Code, Economic Development — governs the state's economic development programs.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§6–305.
Official statutory text
(a) The provisions of this section do not apply to a tax credit claimed by a small business under § 6–303(b)(2) of this subtitle.
(b) If, during any of the 3 years after the credit year, the number of qualified positions of the qualified business entity falls more than 5% below the average number of qualified positions that existed during the credit year on which the credit was computed, the credit shall be recaptured as follows:
(1) the credit shall be recomputed and reduced by the percentage reduction of the number of qualified employees;
(2) the recomputed credit shall be subtracted from the amount of credit previously allowed; and
(3) the qualified business entity shall pay the difference as taxes payable to the State for the taxable year in which the number of qualified positions falls more than 5% below the average number of qualified positions during the credit year.
(c) If, during any of the 3 years after the credit year, the average number of qualified positions falls below the applicable threshold number of positions required under § 6–303(b)(1) of this subtitle, all credits earned shall be recaptured.
(d) During the 3 taxable years after the credit year, a qualified business entity shall provide any information required by the Department in regulation to verify that the qualified business entity is not subject to subsection (b) or (c) of this section.
(b) If, during any of the 3 years after the credit year, the number of qualified positions of the qualified business entity falls more than 5% below the average number of qualified positions that existed during the credit year on which the credit was computed, the credit shall be recaptured as follows:
(1) the credit shall be recomputed and reduced by the percentage reduction of the number of qualified employees;
(2) the recomputed credit shall be subtracted from the amount of credit previously allowed; and
(3) the qualified business entity shall pay the difference as taxes payable to the State for the taxable year in which the number of qualified positions falls more than 5% below the average number of qualified positions during the credit year.
(c) If, during any of the 3 years after the credit year, the average number of qualified positions falls below the applicable threshold number of positions required under § 6–303(b)(1) of this subtitle, all credits earned shall be recaptured.
(d) During the 3 taxable years after the credit year, a qualified business entity shall provide any information required by the Department in regulation to verify that the qualified business entity is not subject to subsection (b) or (c) of this section.
Status: in_force · Read it on the official government site
Need a lawyer in Maryland?
Find a Maryland lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.