Information on the Buy Maryland Cybersecurity Tax Credit program.
What is the Buy Maryland Cybersecurity (BMC) Tax Credit?
The Buy Maryland Cybersecurity Tax Credit is designed to promote the cybersecurity industry in Maryland by helping small businesses purchase cybersecurity technologies and services from Maryland cybersecurity companies to protect business information. The tax credit is awarded on a first come first served basis, and is subject to funding available to the Department of Commerce. Twenty-five percent of the annual funding amount is earmarked for cybersecurity service purchases, and the remaining 75% is available for cybersecurity technology purchases.
The Buy Maryland Cybersecurity Tax 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. The tax credit must be claimed for the tax year in which a purchase is made.
BMC Benefits
Benefit for Companies Purchasing Cybersecurity Technologies and Services:
A Qualified Maryland Company that purchases cybersecurity technologies or services from a Qualified Maryland Cybersecurity Seller may claim up to $50,000 in tax credits in a single tax year. This means a Qualified Maryland Company may apply for the tax credit for up to $100,000 in cybersecurity purchases from Qualified Maryland Cybersecurity Sellers in a single tax year.
50% Dollar for Dollar Tax Credit
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
Calendar Year Purchases
A purchase from a Qualified Maryland Cybersecurity Seller from January 1 to December 31 may be eligible for the tax credit. The tax credit must be claimed for the tax year in which a purchase is made.
Claim Up to $50,000 in Tax Credits
A Qualified Maryland Company that purchases cybersecurity technologies or services may claim up to $50,000 and apply for up to $100,000 in cybersecurity purchases from Qualified Maryland Cybersecurity Sellers in a single tax year
Funds are Limited, So Don’t Wait!
Funds awarded on a first come first served basis, and is subject to funding available to Choice CyberSecurity
Eligibility
To qualify for the Maryland Tax Credit, a company must:
Employment
Employ fewer than 50 staff members in Maryland and file an income tax return in Maryland
Organization Type
Operate as a for Profit Organization in the state of Maryland
Purchases
Purchase from January 1 to December 31. The tax credit must be claimed for the tax year in which a purchase is made
Compliance Framework
Implement a National Institute of Standards and Technology's (NIST) Cybersecurity Framework: Framework Core.
Cyber Technologies
Purchase eligible cybersecurity technologies are proprietary goods and products designed to protect information systems, electronically stored data or information, and electronic data and information transferred between information systems.
Qualified MD Cybersecurity Seller
All purchases must be made from a Purchase from a Qualified Maryland Cybersecurity Seller
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Purchase Qualifying Products and Services from Choice CyberSecurity
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Register and complete the online application and submit your application plus requested documentation.
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Receive your tax credit Certificate of Approval from the Department of Commerce. Companies approved for the tax credit will receive A Certificate of Approval from the Department of Commerce.
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Submit Certificate of Approval to the Comptroller of Maryland when filing your annual Maryland state income tax return with a copy of the invoice(s) for the cybersecurity technology or services and proof of payment.