Enterprise Zone Employment Tax Credits

Tax credits are provided to businesses that create new jobs.

One-time, $1,000 credit/employee in a newly created job
Three-year, up to $6,000 credit/employee for economically disadvantaged worker
$3,000 in the first year
$2,000 in the second year
$1,000 in the third year

Income tax credits are available on tax returns for the taxable years immediately following the designation of the Zone or the location of the business in the Zone, whichever is later. The credit is available on wages paid in the taxable year only, and the employee must have worked at least six months before a tax credit can be received. The six-month qualification period begins when the employee is hired, even though the credit is not taken until the following year. Eligible employees must work at least thirty-five (35) hours per week and spend at least one-half of all work time in the zone or in an activity related to the Zone.

A business entity is qualified upon receipt of a letter from the Zone Administrator stating that the said business is qualified and has fulfilled the requirements of the local political subdivision to receive the credits.

The Employment Tax Credits are available to businesses engaged in specific industries within the Enterprise Zone.  Upon notification, the Office of Economic Development will certify the business and employment, normally with a site visit.  The business will then be provided with a letter stating that it is eligible to claim the tax credit.

Enterprise Zone Property Tax Credits

Tax credits are provided to certain businesses that increase the assessable tax base.  Pre-certification by the Office of Economic Development is required.

Business that locate or expand within the Cecil County Enterprise Zone, in accordance with state and local requirements, may receive credit on that portion of property taxes that are eligible. Eligible assessment is defined as the difference between the base year assessment and the assessment for the first year in which the property tax credit will be applied. The base assessment is the taxable assessment on the property in the tax year immediately proceeding the first year in which the special tax credit will be applied.

Property tax credits may be granted for a total of ten (10) years. The credit remains at eighty percent (80%) in each of the first five (5) taxable years, and may continue for the life of the Zone (10 years) in decreasing amounts as follows:

Businesses seeking Property Tax Credits must apply to the Office of Economic Development prior to completing the construction or expansion project.  Property tax credits may not be granted retroactively.