Applications are now being accepted for the new Buy Maryland Cybersecurity Tax Credit, designed to encourage small businesses to purchase cybersecurity technologies and services from qualified Maryland cybersecurity companies.
To register as a Qualified Maryland Cybersecurity Seller (QMCS), Maryland companies must meet certain criteria and submit an application to Maryland Commerce. Once approved, QMCS are listed on the Commerce website, gaining exposure to prospective buyers and generating additional sales.
To qualify for credit, a buyer must complete and submit an application to Maryland Commerce for approval prior to making the purchase. Once qualified, the buyer is then eligible to claim a tax credit for 50 percent of the purchase price of cybersecurity technologies and services bought from a QMCS.
The tax credit, which must be claimed for the tax year in which the purchase is made, is capped at $50,000 for purchases of up to $100,000. To be eligible for the tax credit in 2018, the inaugural year of the program, approved purchases from a QMCS must occur by December 31.
The tax credit is awarded on a first-come, first-served basis. Seventy-five percent of the annual funding is earmarked for cybersecurity technology purchases, with the remaining 25 percent available for cybersecurity service purchases. For 2018, Maryland Commerce has a total of $2.0 million in funding for the tax credit.
“With input from entrepreneurs and business leaders in Maryland’s cyber sector, and support from the legislature, we now have an incentive that benefits both buyers and sellers of cybersecurity,” said Maryland Commerce Secretary Mike Gill.
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