Maryland · Jobs · MD-JC-001
Job Creation Tax Credit
Publication revised September 24, 2026. Sourcebook page 138.
Credit amount / calculation
Generally $3,000 per qualifying position or $5,000 in revitalization areas, with certain veteran enhancements.
Business fit and eligible activity
Forest-products manufacturers adding qualifying Maryland jobs can receive per-job credits. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Eligibility and practical use
A mill expansion can meet the capital side of a project easily and still miss a jobs credit because the headcount is too small. That is why this credit should be tested against the actual staffing plan, not the size of the equipment purchase. A logging contractor should confirm that its industry or work location is within the eligible class before counting the jobs. Hiring before the required certification or reservation can jeopardize the credit.
Illustrative business benefit
Assume an approved mill project satisfies the location, wage, timing and minimum-job tests and certifies 60 positions at $3,000 each. The calculated credit is $180,000 before use limits. A project below the applicable minimum cannot simply multiply its jobs by the rate.
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.
Official sources
- commerce.maryland.gov — Job Creation Tax Credit (commerce.maryland.gov)
Related programs
Historic Revitalization Tax Credit
Percentage of qualified rehabilitation expenditures
Certified historic mills and industrial properties can qualify.
One Maryland Tax Credit
Up to
Qualifying Tier 1 county projects with jobs and investment can earn a large credit.
Research and Development Tax Credit
10% of eligible excess Maryland research
Maryland manufacturers can apply annually for a capped state credit, production, routine quality control and an equipment purchase alone do not qualify.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.