Expertise Beyond the Numbers

Revitalizing Workforce Development through More Jobs for Marylanders Act of 2017

In a continued effort to enhance Maryland’s economic status and provide more jobs for Marylanders, the Hogan Administration has added jurisdictions to the More Jobs for Marylanders Act of 2017. The More Jobs for Marylanders Act of 2017 passed in the Legislative Session earlier with a unanimous vote. The bill is the foundation to encourage and incentivize Maryland manufacturers to create jobs in areas of the state that strategically need an uptick in job opportunities.

In order to push for more jobs in counties or jurisdictions in dire need of a boost to employment numbers, the counties selected are provided additional benefits or considered part of Tier 1. The initial jurisdictions in Tier 1 considered Qualified Distressed Counties included – Allegany, Dorchester, Somerset, Worcester, and Baltimore City. As of July 2017 – three more jurisdictions are included in this Tier 1 list – Baltimore County, Prince Georges County, and Washington County.

Now is the time for manufacturers to consider their workforce development tactics to obtain substantial tax credits through this bill. SC&H Group’s Manufacturing Consulting team has mapped out the top three takeaways to consider for the More Jobs for Marylanders Act of 2017:

Creates tax incentives directly attributed to job creation for a 10 year timeframe.
Incentives are offered to manufacturers who implement family-supporting wages and execute on job creation or workforce development initiatives. Incentives credits for – property tax, income tax, sales tax refunds, and exemption from SDAT corporate filing costs. If your operations are statewide, manufacturers are eligible for additional income tax incentives.

Promotes manufacturers to make strategic investments.
Investments to maintain up to date equipment are an added value to this act as it includes accelerated and bonus depreciation, allowing manufacturers to write off the costs of capital purchases within a year. Capital is more readily available for companies to utilize to enhance facilities, hire additional staff, and ultimately feed into growth of operations.

Reinforces Maryland’s Workforce
The extent to which this act strengthens Maryland’s ability to spur growth within the manufacturing workforce is substantial. Through partnership programs matching grants to manufacturers offering programs that provide training to enhance employee’s skills, to additional scholarship dollars for students enrolled in job training programs at community colleges. Specific to manufacturers who are utilizing apprenticeship programs as their workforce development strategy – $1,000 income tax credit per apprentice a manufacture employees. Additionally the act promotes high schools to implement more vocational training programs to feed into the employment strategies of Maryland manufacturers.

Overall, this act positions Maryland to be closer in line with programs in neighboring states such as Delaware and Virginia. SC&H Group is tracking additions or enhancements to this act as they are implemented, and keeping the conversation moving on this topic. If you have any questions about how you can receive tax incentives through the More Jobs for Marylanders Act of 2017, the SC&H Group team is here to help. Contact us here.