Civic News

This tax credit proposal could lead to more incubators in Baltimore

Baltimore-based legislators Bill Ferguson and Brooke Lierman want to make a “small but important amendment” to the One Maryland Tax Credit.

Emerging Technology Centers President Deb Tillett. The incubator launched in 1999 with public support. (Photo by Flickr user Maryland GovPics, used under a Creative Commons license)

Just because startup incubators don’t employ dozens of people directly, that doesn’t mean they shouldn’t be eligible for the same economic development tax credit other spaces get.
That’s the argument two Baltimore-based state lawmakers are making with a pair of bills that were heard in Annapolis during the current legislative session.
The bills were filed by Sen. Bill Ferguson in the Senate and Del. Brooke Lierman in the House. They look to make a “small but important amendment” — as Lierman put it — to the One Maryland Tax Credit.
As currently written, the credit can provide up to $5 million to companies that are building a project. The project must create at least 25 full-time jobs. That leaves out incubators, since the jobs created are provided by companies within incubators, rather than the incubators themselves.
“HB810 adds a line … that in the alternative, a company may qualify if it is a business incubator that creates at least 25 jobs at the facility,” Lierman told the House Ways and Means committee on March 13.
At that hearing and a separate Senate Budget and Taxation Committee session on Feb. 25, representatives from Johns Hopkins University and the University of Maryland testified in favor of the bill. Lierman specifically mentioned Betamore as an example of a successful incubator in Baltimore City.
Jane Shaab, executive director of the UM BioPark in West Baltimore, said the law will help the university develop a new building. The new space will be 225,000 square feet, and include an incubator, Shaab said.
Incubators and accelerator programs are a proven way of nurturing a startup ecosystem. But private companies typically don’t want to be sole investors in incubators because of the cheap rent they charge and other overhead costs that prevent the companies from recouping construction costs, said Andy Frank, special adviser for economic development to Johns Hopkins University President Ronald Daniels.
As a vice president for the Baltimore Development Corp., Frank previously worked on getting the two Emerging Technology Centers incubators up and running.
“Without government. partnership, without these incentives, these two successful centers would not have been built,” he said.
Comcast lobbyist Sean Looney was also on hand at the Assembly hearing to voice support. He noted that the telecom giant is currently supporting Maryland incubators with “cash and in-kind support.”
The panels did not immediately vote on the bills. The fate of many bills will be decided by the General Assembly’s “crossover day” — when each body tells the other what measures they intend to pass. This year’s crossover day is March 23.

Companies: Maryland General Assembly / Emerging Technology Centers (ETC Baltimore) / University of Maryland BioPark / Bio-Rad Laboratories / Betamore / Comcast

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

Silicon Valley venture firm launches ‘Rising America’ fund to back diverse founders

Why are there so few tech apprenticeships?

Government contracts can change the game for for small and underrepresented businesses

Baltimore's innovation scene proved its resilience in 2024

Technically Media