Author Archives: Angela Hongmannivanh

Capital

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Six State Tax Credits Maryland Companies Should Know About

Fortunately, tax season is over six months away, however it doesn’t hurt to start planning. The state of Maryland offers a variety of tax credits for everything from R&D, to cyber to veteran-owned businesses. If your business is established or if it’s in the growing phase and looking for funding, these tax credits may help your bottom line. Take a look to see what you may be missing:

More Jobs for Marylanders

One of Governor Hogan’s top legislative priorities of 2017, More Jobs for Marylanders is a new program that incentivizes and encourages manufacturers to create jobs in areas of Maryland that need jobs the most. Created for new and existing manufacturing businesses, the Program provides tax incentives tied to job creation for a 10-year period, encourages additional investment in new equipment through accelerated and bonus depreciation and helps to strengthen Maryland’s workforce.

New manufacturing businesses locating in a Tier 1 county and creating at least five news jobs may be entitled to a 10-year (1) income tax credit based on the number of jobs created; (2) State property tax exemption; (3) sales and use tax refund for specific purchases; and (4) waiver of all State Department of Assessment and Taxation fees. Tier 1 jurisdictions include Baltimore City and Allegany, Dorchester, Somerset, and Worcester Counties. Tier 2 counties that have been promoted for Tier 1 benefits, per the Secretary’s approval authority to designate three counties, are Baltimore, Prince George’s and Washington Counties.

Hire Our Veterans Tax Credit

This program provides a State income tax credit to small businesses for hiring qualified veterans based on wages paid to those veteran employees. A Maryland employer may qualify for an income tax credit equal to 30% of up to the first $6,000 of wages paid to a qualified veteran employee during the first year of employment (i.e. a maximum of $1,800 per qualified veteran employee). A qualified employer is a “small business” operated by an individual, a partnership, a limited partnership, a limited liability partnership, a limited liability company, or a corporation that employs 50 or fewer full-time employees.

Cybersecurity Investment Incentive Tax Credit (CIITC)

CIITC provides a refundable income tax credit to Qualified Maryland Cybersecurity Companies (QMCCs) that secure investment from investors. The purpose of this new program is to incentivize and attract cybersecurity companies to startup in or move to Maryland; and to attract investment to cybersecurity companies in order to help them grow, create jobs and retain intellectual property in Maryland.

Montgomery County passed legislation to offer a local supplement to the Maryland Cybersecurity Investment Incentive Tax Credit to QMCCs that receive a final Maryland tax credit certificate and have their headquarters and base of operations in Montgomery County. The program is subject to appropriation of funds.

Research and Development Tax Credit (R&D)

Businesses that have qualified R&D expenditures in Maryland may qualify for two state income tax credits, the Basic R&D Tax Credit and the Growth R&D Tax Credit. The tax credit remains in effect until January 1, 2020, subject to extension by the General Assembly.

  • Basic R&D Tax Credit: Three percent (3%) of eligible R&D expenses that do not exceed the Maryland Base Amount. If the total credits applied for exceed $5.5 million, the business’s Basic tax credit is prorated.
  • Growth R&D Tax Credit: Ten percent (10%) of eligible R&D expenses in excess of the Maryland Base Amount. If the total credits applied for exceed $6.5 million, the business’s Growth R&D tax credit is prorated.

Biotechnology Investment Incentive Tax Credit (BIITC)

BIITC provides an investor with income tax credits equal to 50% of an eligible investment in a Qualified Maryland Biotechnology Company (QMBC). The program supports investment in seed and early stage biotech companies to promote and grow the biotech industry in Maryland. 

BIITC provides an income tax credit equal to 50% of an eligible investment in a QMBC up to $250,000 for each QMBC per fiscal year. Total credits issued during the fiscal year cannot exceed the budget amount and are, therefore, issued on a first come basis. The credit is refundable if the investor has no Maryland income tax liability.

Employer Security Clearance Costs (ESCC) Tax Credit

The ESCC Tax Credit provides income tax credits for expenses related to federal security clearance costs, construction of Sensitive Compartmented Information Facilities (SCIFs) and first-year leasing costs for small businesses doing security-based contract work. 

  • Security Clearance Administrative Expenses Tax Credit
    A business may qualify for an income tax credit up to $200,000 per taxable year for qualified security clearance administrative expenses.
  • Sensitive Compartmented Information Facility Costs Tax Credit
    A business may also claim a credit against its Maryland income tax for costs related to the construction or renovation of a SCIF located in Maryland. The SCIF must be accredited by the appropriate federal agency. For costs related to a single SCIF, the credit is equal to the lesser of 50% of the costs or $200,000. For costs related to multiple SCIFs, the credit is the amount of costs up to $500,000 per calendar year.
  • The First Year Leasing Costs Tax Credit for Qualified Small Business
    A qualified small business may also claim a credit against its Maryland income tax up to $200,000 for costs for rental payments during the first year of a rental agreement for leasing spaces to perform security-based contracting work.

Check the State of Maryland website for details, exclusions, and updates at http://commerce.maryland.gov/fund/programs-for-businesses.

Source: http://commerce.maryland.gov/fund/programs-for-businesses

 

 

Workforce Development

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New Training Center in Baltimore Readies Maryland’s Cyber Workforce

Governor Larry Hogan; Stephen Thomas, general manager of Cyberbit North America; Bruce Spector, CEO of Baltimore-based Electronic Technology Associates (ETA); Baltimore Mayor Catherine Pugh; and other dignitaries attended a grand opening celebration of the Baltimore Cyber Range. The creation of the center was announced during the governor’s trade mission to Israel in September 2016. The Baltimore Cyber Range, which is located in Spark Baltimore in Baltimore City, will provide cybersecurity professionals with the most advanced cyber warfare strategies in an environment that simulates real threats.

“Governor Hogan’s trade mission to Israel was designed to bring to Maryland the technology-rich capability the Israelis have developed in cybersecurity,” said Bruce Spector of ETA. “The Baltimore Cyber Range has done just that, bringing together their team, along with the capabilities of Cyberbit, to create a revolutionary way to train cybersecurity workers.” “The range has demonstrated the potential to dramatically improve the skills and experience of those working to protect our national IT infrastructure. It also represents a key element of our ongoing efforts to provide the Maryland workforce the skills and knowledge required to address the skilled cybersecurity workforce shortage.”

The Baltimore Cyber Range is powered by Cyberbit’s Range Platform, a cybersecurity simulation and training environment that enables security teams to train in realistic settings. This hands-on experience expands cyber professionals’ knowledge base and enhances their skills to keep pace with evolving cyber threats. In addition, the training offered through the Baltimore Cyber Range promotes team building and enables cyber teams to respond more quickly and more effectively to complex and advanced attacks. As the first stand-alone and hands-on training cybersecurity training center in the nation, it will provide the most-up-to date training for our cyber force, further demonstrating that Maryland is truly the cyber capital of America. The rapidly growing need for hands-on cybersecurity training in private and public-sector organizations worldwide means that there is a need for this type of pioneering activity in Maryland which is being brought by the Baltimore Range.

Since 2015, the Hogan administration has taken major strides to cultivate and strengthen Maryland’s impressive cyber industry. In the Fiscal Year 2018 budget, the administration added $4 million for cybersecurity training in the EARN Maryland initiative. In addition to the 2016 Israel economic development trade mission, Governor Hogan in June of this year led a delegation of Maryland businesses and officials on a trade mission to London, where he addressed cyber industry leaders at the Houses of Parliament and announced the launch of iCyberCenter@bwtech, an international cybersecurity center at the University of Maryland Baltimore County. Last month, Governor Hogan joined 37 governors across the country in joining a multi-state cyber compact to better secure states’ cyber infrastructure, and announced the opening of ELTA North America’s Cyber Innovation Center.

Source: http://commerce.maryland.gov/media/governor-larry-hogan-joins-eta-and-cyberbit-to-open-baltimore-cyber-range

“Working with Cyberbit and Governor Hogan’s administration to bring this new cyber training technology to Maryland has been an unbelievable opportunity,” said Michael Doyle, president of Baltimore Cyber Range.

“We congratulate the Baltimore Cyber Range and the state of Maryland for opening the new training and simulation facility today,” said Adi Dar, CEO of Cyberbit.

Member Spotlight

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Every month the Maryland Tech Council turns the spotlight on an individual member who is making an impact in their professional field. This month, we want to recognize and thank all of our members who support, advocate and work to diversify Maryland’s technology and life science industries and the Maryland Tech Council.

mtcmembershttp://www.mdtechcouncil.com/tcm/pdf/MTCmembers-32×40.pdf

We are excited about the new fiscal year and laying the ground work for all of the collaboration that will go on. To kick things off, please join us at the new headquarters office on October 4th for MEMBER Orientation. This is your opportunity to meet the MTC staff, familiarize yourself with the variety of member benefits, and most importantly, get connected!  Topics covered include:

  • Member Benefits
  • Events/Networking
  • Cost Savings Programs
  • Committees
  • Mentoring
  • Talent/Workforce Development
  • Advocacy/Government Relations
  • Communications

We aren’t a place you “go” – we are a network you access, a resource you leverage, an advisor you can trust. Join us October 4th and meet the MTC Team that is ready to support your growth.

MTC Member Orientation
Thursday, October 4, 2017 9:00 am – 10:30 am
Maryland Tech Council
9841 Washingtonian Blvd #200, Gaithersburg, MD 20878

Register Here
Forgot MTC User Name or Password? Click Here

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MTC’s Young Professionals Society – Path to Success: The Journey of Spotluck CEO, Cherian Thomas

Join the Maryland Tech Council’s Young Professionals Society (YPS) for “Path to Success: The Journey of Spotluck CEO, Cherian Thomas”. This insightful discussion will feature Spotluck Co-Founder and CEO, Cherian Thomas. Hear firsthand from the CEO of one of iTunes’ most popular dining apps about his journey to success. Learn what it takes to build and lead a company from a fellow young professional. More information and registration details can be found here.

The Maryland Tech Council launched YPS in April 2017 and has since held four networking events for Maryland young professionals. YPS advances young professionals through leadership and professional development, networking opportunities and educational events. The society aims to strengthen the life science and technology communities in Maryland by providing an opportunity for collaboration between these two industries.

To keep up with all YPS events and news, follow us on Twitter and LinkedIn. For more information, or to learn about sponsorship opportunities, contact Emily Pool.

 

 

Mentoring Services

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The Maryland Tech Council Venture Mentoring Service Program (MTC VMS) is a team mentoring program based on a model developed by MIT. The program has been adopted in over 70 communities around the globe; the MTC VMS program is the 50th program. The ultimate goal of the program is to bring employment opportunities and capital to the area in the technology and life sciences fields by helping companies grow faster.

Mentee Opportunity

The MTC VMS is focused on companies in the technology and life sciences fields that are preparing to raise their first venture capital or institutional round of financing. Potential mentees are carefully selected and may include individuals whose organization is their first or second venture.

Potential mentee companies must be led by an individual or individuals who work full-time on the business and will be committed to the program and willing to take responsibility for engaging with their mentor team.

Potential mentees/entrepreneurs whose applications are accepted will have the opportunity to present to potential mentors at a monthly mentor meeting, after which the VMS will facilitate matches with interested mentors. The VMS team will provide guidelines to support the start-up of the relationship and assist in the ongoing management of the team mentoring meetings. Apply Here.

For more information about the program, a representative from the VMS will be holding office hours later this month to discuss the program. If you would like to learn more, please email mentor@mdtechcouncil.com.

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Polaris Alpha

polaris-alpha

Congratulations to Polaris Alpha which was recently named Government Contractor of the Year at the MTC Industry Awards Celebration! To give members deeper insight into the company, we spoke with CEO Peter Cannito about this newly formed company.

Tell us about Polaris Alpha and the types of clients with whom you work.

The company was formed last year when three well-established companies came together: EOIR Technologies, Intelligent Software Solutions, and Proteus Technologies. All three companies were small businesses, and we wanted to form a new, agile, mid-sized company. We focus on highly technical mission critical systems development for national security clients, including intelligence, three-letter agencies, and the Department of Defense. In Maryland, we support Ft. Meade and various tenants at Aberdeen Proving Grounds. Specifically, we build intelligence management systems, cybersecurity systems, smart sensors, and electronic warfare applications.

Polaris Alpha employs 1,200 people and has 20 offices. Our hubs are in Annapolis Junction, Maryland, and Colorado Springs, Colorado.

How is Polaris Alpha different from other government contracting firms?

There are very few mid-sized government contracting firms that are doing what we do, so we are, in essence, defining that space. Our strategy maintains that the market is interested in a mid-size player like Polaris Alpha that is focused on high-end technical capabilities like electronic warfare, cyber, advanced analytics, and cloud computing. We stay at the high-end so that we can be more agile in terms of how we can support the customer, and we are disruptive in developing innovative ways to develop those technologies. As independent small businesses, all three companies shared a common culture in that they were interested in mission critical areas, and now that we are one company, we’re forming a strategy to lead this mid-tier agile space.

What are the most important factors you attribute to your company’s success?

There are two, organic growth and continuing momentum. This year, we acquired Intelesys in Columbia, Maryland. With that acquisition, we plan on winning a number of different contracts as a team instead of as individual companies. We also want to continue our success in using OTAs.

What were some of the obstacles you and your colleagues are facing in bringing together the three companies?

We are trying to successfully navigate the obstacles that come with growing a new company while working on blending corporate cultures into one that is unique. We are currently focusing on merging systems across the organization so that we can grow at a healthy rate and implement a cohesive set of processes. The real challenge comes with working on all of this while supporting intense mission-critical programs.

What are the most pressing challenges you anticipate facing over the next 12 – 24  months?

Within the industry, it’s the ability to come up with new and innovative ways to work with the government so that it keeps pace with technology. Government contracting can be slow and technology changes quickly. With IT, it can be difficult to connect the dots across large agencies, but if you’re as focused on this rapidly growing space as we are, it’s easier to communicate to agencies how they can leverage systems across the government. We’ve developed a lot of intellectual property that can be used across different agencies.

Tell us about the culture at Polaris.

Our mission is the mission. There are a lot of companies in this area where people who are coming out of college and into the high-tech space can work. We differentiate ourselves by offering these individuals the opportunity to have a real impact on mission critical areas and gain hands-on experience supporting highly technical programs. We are building a culture where we have intelligent and motivated people of all experience levels collaborating to solve highly technical problems. They feel good about having a career in which they are doing real work and making a real difference.

Where did the name come from?

Polaris, or the North Star, is actually a triple star system, so we felt that it was representative of the original three companies. Alpha is the brightest of the three stars.

Who can MTC members contact if they have any questions?

They can contact Brittany Trocher, Strategic Communications & Outreach Manager at brittany.trocher@polarisalpha.com or at 410.306.8721 or 443.417.6873.

polarisalpha2

Workforce Development

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An Overview of the More Jobs for Marylanders Act

The centerpiece of the Maryland Jobs Initiative that was reported in the February Vibe is the More Jobs for Marylanders Act. The bill achieved nearly unanimous passage in both the House and Senate in April and went into effect last month.

According to a press release from Governor Hogan’s office:

The legislation provides tax incentives for new and existing manufacturers to create thousands of jobs, along with additional workforce development initiatives that the governor supports. New manufactures opening shop in high-unemployment counties would receive a 5.75% wage tax credit, a state property tax credit, and a sales and use tax credit for ten years. The legislation also waives state filing fees, and all incentives are contingent on the company creating at least five jobs. Existing manufactures that create at least five new jobs anywhere in the state would also receive the same wage tax credit.

“Since day one the focus of our administration has been on restoring Maryland’s economy and putting more people to work. We have already seen incredible success – we have added nearly 105,000 new jobs and lowered unemployment to 4.2 percent,” said Governor Hogan. “We are taking the next important step by signing the More Jobs for Marylanders Act, which will incentivize and encourage manufacturers to create thousands of jobs in the areas of the state that need them the most, like Baltimore City, Western Maryland, and the Lower Eastern Shore, while also offering benefits to both workers and job creators across the state.”

“This is a huge step forward for Maryland’s manufacturing industry and will our great employers put even more Marylanders to work and bring even more high-quality products to consumers,” said Regional Manufacturing Institute President Michael Galiazzo, Ph.D. “I commend Governor Hogan and the Maryland General Assembly for recognizing the incredible value our manufacturing job creators bring to our great state, and for helping ensure the industry will continue to grow and thrive in the years to come.”

The legislation also bolsters the state’s workforce so that Maryland workers have the skills needed to fill these new jobs. It provides $1 million in Workforce Development Scholarships for eligible students enrolled in job training programs at community colleges, and contains measures to encourage high schools to offer additional vocational training, as well as requiring state agencies to analyze their registered apprenticeship programs. This builds on the Hogan administration’s strong commitment to encouraging apprenticeships throughout Maryland’s nationally recognized Employment Advancement Right Now (EARN) workforce training program, which has already provided training for nearly 2,000 unemployed or underemployed workers.

Source: Office of Governor Larry Hogan – bit.ly/2vyXK7P 

Capital

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Maryland Loan Program for Military Personnel Accepting Applications

The state of Maryland offers a number of financing programs for various segments of business owners. Currently, the state has an open application period for their Military Personnel and Veteran-owned Small Business Loan Program (MPVSBLP). MPVSBLP provides no interest loans that range from $1,000 to $50,000, from one to eight years, for businesses owned by military reservists, veterans, National Guard personnel and for small businesses that employ or are owned by such persons. Business owners and businesses that fit the criteria are able to apply for loans until August 15, 2017.

Eligible applicants include businesses owned by military reservists and National Guard members called to active duty, and small businesses, with fewer than 50 employees that employ them. For reservists or National Guard members called to active duty, Program funds must be used for payment of identifiable costs of the business, including general business expenses, which result from the call to active duty. The loan may be made at any time from the date of the call to active duty through the period ending six months after the end of the individual’s active duty.

For service-disabled veterans, businesses owned by service-disabled veterans, and businesses employing service-disabled veterans, the purpose of the Program is to assist with the cost of making the home, motor vehicle, or place of employment of a service-disabled veteran accessible to individuals with disabilities and to defray other necessary expenses.

The Departments of Commerce and Veterans Affairs notifies prospective applicants on their websites of the availability of funds and the time period for submission of applications. An application must first be submitted to MDVA. Once MDVA determines that an applicant meets basic eligibility rules for the Program, the application will be forwarded to the Department of Commerce for financial review and underwriting.

The Department will review and process each application using standard commercial credit criteria to determine whether it meets the Program’s financial and other requirements for loan approval. The Department will recommend approval of financing for the projects deemed to present the best chance of succeeding.

For more information about the program, eligibility details, and applications, visit bit.ly/2ukSFzU.

Source: Maryland Department of Commerce – bit.ly/2ukSFzU 

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Join us at Maryland Association of Counties (MACo) Conference

Please join the Maryland Tech Council at the Maryland Association of Counties (MACo) Conference, August 16 – August 19 in Ocean City, Maryland.  Be sure to visit us at the Tech Expo on August 16 and at Booth #524.  If you are already registered to attend, please email Tami Howie, tami@mdtechcouncil.com so we can include you in our delegation. If you have not registered do not miss the chance to represent the Bio and Tech Community to all of the legislators, county and state officials and spend time with the Governor of Maryland, Larry Hogan.  Click below to register (use discount code for MTC members: MTC2017 and get get 25% off of registration for tech day and 20% off full registration for all days.

macoClick here to register.

MACo President and Baltimore County Executive Kevin Kamenetz commented, “MACo is thrilled to partner with the Maryland Tech Council for this event. Bringing together county officials with leaders in the technology and life sciences communities is exactly what we should be doing to explore new horizons for our state. We are looking forward to a great event and an amazing partnership that is sure to produce positive results for the people of Maryland.”

MTC Chief Exective Officer, Tami Howie states, “we are encouraging all of our members to attend the MACo conference to work with state and county officials to develop programs and policies that help make Maryland the greatest innovation hub in the country.  Let’s start the conversations now.” 

TECH EXPO—WEDNESDAY AUGUST 16TH 11:00 am to 4:00 pm

MTC is partnering with the Maryland Association of Counties (MACo) to bring you this year’s Tech Expo. Arrive by 11:00 am on Wednesday to explore a hall of tech-focused vendors. Hear vendors pitch to government officials in an IGNITE session, and listen-in to thought-leaders discuss how to net a biotech boom in Maryland, and what the newest in social media and virtual reality have to offer business and government.  Entrance in the Tech Expo is included in a full registration, or is available as a separate option.

In a special general session on Friday morning of the conference, MACo will feature a pitch-competition with entrepreneurs from across Maryland and five different growth sectors vying for bragging rights as Maryland’s best bet for economic growth. Join the experience to see how industry representatives portray their field, and how their start-up stacks up against the others. Vote for your top pick and see how your assessment aligns with three expert judges.

Friday, August 18th  9:00 am – 10:45 am

The Voice of Entrepreneurship: Who Has the Perfect Pitch for Maryland?

Startup Maryland and the SRT1UP Roadshow tour Maryland to celebrate, coach, curate, and capitalize high-potential entrepreneurs. Over the course of the year, the Roadshow has focused on five high-growth trajectories: cyber/IT; manufacturing 4.0; health, wellness, and life sciences; rural innovations; and social innovations. In this untraditional session, tune in to these economic drivers, hear actual pitches from the best-of-the best of the Roadshow tour, and learn how to assess investment opportunities. Judges on stage, including an active institutional venture capitalist and a recognizable serial entrepreneur, will grill the pitchers as the audience responds. Do you know what your county should listen for as startups like these join the chorus of Maryland industries? See if your vote for perfect pitch is in harmony with the experts.

Speakers:  Stacey Smith, CyberSecurity Assoc. Of Maryland; Mike Galiazzo, RIM; Charlotte Davis, RMC; Tami Howie, Maryland Tech Council; Richard May, Innovation Village

Judges: Julie Lenzer, Associate Vice President of Innovation and Economic Development and Co-Director of UM Ventures, University of Maryland; Bruce Mcindoe – Founder and CEO iJET; C.A. Dutch Ruppersberger, U.S. Congress, Maryland’s 2nd District

Moderator: Michael Binko, Founder and CEO, Startup Maryland

Wednesday, August 16th 11:30 am – 12:30 pm

“SWITCH PITCH” IGNITE! Session – Meet Your Match: Solutions to County IT Challenges

Gain quick insight into what tech can do for county governments in this fast-paced session. County IT and management professionals will state their needs, and vendors in the Tech Expo Tradeshow will respond with their pitch for solving the top tech issues. Attendees will get a chance to learn a little about a lot of vendors in a short period of time. Listen and learn!

Moderator:  Richard Cerkovvnik, Interim CPAM Director, Montgomery College

Wednesday, August 16th 12:45 pm –1:45 pm

BIOTECH BAIT: Can Maryland Net a Boom in Biotechnology?

Maryland counties have a big stake in a potential boom of the biotechnology industry – if Maryland lands it. What is the county role in making Maryland an international hub for biotech? In this session, industry leaders share what they are looking for when they scope new locations, and what they need to grow in the land of crabs and corn.

Speakers: Julie Garner, AstraZeneca Medimmune; Henry Bernstein, Scheer Partners; Brian Gaines, MDBio Foundation;

Chris Frew, BioBuzz

Moderator: Tom Sadowski, Vice Chancellor for Economic Development, University System of Maryland

Wednesday, August 16th 2:00 pm – 3:00 pm:

Headsets On: Get Ready for Virtual Reality and the Social Shake-Up

Virtual reality is one of the hottest and most mysterious types of tech. Virtual reality’s tempting serum, poured over snowballing social media use, could turn the way that government interfaces with the public into one heck of a snow cone. VR applications for county governments already include tourism, economic development, and information science, with more to come. Join this session to hear more about the opportunities presented by virtual reality and its integration with county services.

Speakers: Jason Michael Perry, Mindgrub; Julie Lenzer, University of Maryland; Will Gee, Balti Virtual

Moderator: Brian Darmody, Associate Vice President for Corporate and Foundation Relations, University of Maryland

Cost Savings Program

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costsavings-flyerClick here to download flyer.

Get the purchasing power of a national organization with the Maryland Tech Council Cost Savings Program. We are dedicated to providing solutions that address the business needs of your industry and ensuring our members are aware of the products, services, and value that our cost savings programs offer.

Join the 140 MTC members, of all sizes, who save substantial money each year through the cost savings program.

How do I get started? Click here and select the individual programs that make sense for your company. Each individual program has its own enrollment process. Or, feel free to contact pamela@mdtechcouncil.com or 240-243-4049.