Signed by Governor Larry Hogan, Jr.

Vote Smart's Synopsis:

Vote to pass a bill that establishing the Promoting Extraordinary Innovation in Maryland's Economy (PRIME) program.

Highlights:

• Establishes the Promoting Extraordinary Innovation in Maryland’s Economy (PRIME) program within the Department of Commerce (Sec. 1).

• Requires businesses to apply for the program by submitting an application which contains information including, but not limited to, the following (Sec. 1):

• Anticipated start date of eligible project;

• Location of eligible project;

• Estimated number of qualified positions to be created;

• Anticipated payroll for qualified positions; and

• Evidence that the eligible project will serve as a headquarters.

• Defines “qualified position” as a position that (Sec. 1):

• Is full-time;

• Is indefinite in duration;

• Pays between $60,000 and $500,000 a year; and

• Is newly created and located at the eligible project in the state.

• Requires businesses, in order to establish an eligible project, to engage in activities including, but not limited to, the following (Sec. 1):

• Submit evidence that the business is legally committed to spending at least $500 million in project expenses; and

• Submit a project plan that commits to, over 17 years:

• Fill at least 40,000 qualified positions;

• Provide compensation for such positions that, on average, equals at least $100,000 a year; and

• Spend at least $4.5 billion.

• Authorizes business to include in the $500 million certain expenses including, but not limited to, the following (Sec. 1):

• Payments made to contractors, builders, and suppliers;

• Land acquisition;

• Surveys, estimates, plans, and architectural services;

• Installing water, sewer, gas, electricity, communications, railroads, and utilities;

• Non-recurring expenses such as furniture; and

• Insurance.

• Authorizes various tax benefits for participation in the program, including the following (Sec. 1):

• A credit against state income tax;

• A credit against portions of county and state property taxes; and

• An exemption from sales and use tax.

• Specifies that if the number of qualified positions at the eligible project decreases to a number less than that which was reported in the first benefit year, the project will be removed from the PRIME program and benefits will be terminated (Sec. 1).

• Authorizes the State Comptroller, upon a business’s removal from PRIME by the Department of Commerce, to make an assessment against the business to recapture any amounts of program benefit the business has received (Sec. 1).

Full Bill Text