BizLaw 101 Blog

Your Business Might Be Eligible For Tax Credits When Hiring Employees

Posted April 22, 2015 by Jamie Kent Hamelburg in BizLaw 101 Blog

If you hire an employee in 2015, you might be eligible for certain Maryland tax credits depending on where your business is located and the type of employee you hire.

Location, Location, Location…

In an effort to create new jobs and redevelop economically struggling communities within the State, Maryland gives a tax credit to businesses hiring new employees when the businesses are located in disadvantaged areas called Enterprise Zones.

The one-time credit is $1,000 per worker, which increases to $1,500 for new hires in Prince George’s County and Baltimore City.

Hiring Disadvantaged Workers Is Good For The Bottom Line

Maryland also gives a larger tax credit to businesses located in the Enterprise Zones when the new jobs are given to economically disadvantaged individuals.

That credit is $6,000 over a three-year time period, which increases to $9,000 for new hires in Prince George’s County and Baltimore City. 

Is Your Business In An Enterprise Zone?

The accompanying table identifies the current Enterprise Zones in Maryland. Note that the tax credits expire over time as the locations become more developed. One notable example of this is the downtown Silver Spring area; its bustling restaurants and shops were spurred by that area’s former designation as an Enterprise Zone.

Maryland Enterprise Zones

(by County)

Allegany (Rt. 220 South, Cumberland)

Baltimore City

Baltimore (North Point, ​Southwest, Woodlawn)


Dorchester (Cambridge, ​Hurlock Enterprise Zone)

Garrett (Southern Garrett Industrial Park, ​Northern Garrett Industrial Park)

Harford (Aberdeen/Havre de Grace)

Montgomery (Olde Towne-Gaithersburg, ​Glenmont, ​Long Branch –Takoma Park, ​Wheaton)

​Prince George's


Washington (Town of Hancock, ​Hagerstown)

Wicomico (Salisbury, Fruitland)

Worcester (Berlin, ​Pocomoke City, Snow Hill)

Maryland’s Department of Economic Development recently issued a report detailing the use and effectiveness of its Enterprise Zone Tax Credit program. A link to the report is here

Do Your Paperwork

In order to use a tax credit, you must become certified before hiring your employee. While “nothing is certain except death and taxes,” a good Certified Public Accountant can advise you on whether your business qualifies for the Maryland Enterprise Zone tax credit in addition to other county, state and federal tax credits.

Jamie Kent Hamelburg is a business and commercial real estate attorney at Press, Dozier & Hamelburg. She can be contacted at (301) 913-5200 or by email at Press, Dozier & Hamelburg partners with businesses to achieve their goals, and represents families and individuals, often when they are most vulnerable. Our attorneys deliver valuable insight and counsel in the areas of business law, employment law, litigation, commercial real estate, estate planning and administration, and business succession planning. We provide all of our clients with personal service, emphasizing responsiveness, sensitivity, and respect. We are located in Bethesda and serve Maryland, Virginia and Washington, DC. 


Note: The content in this Blog is for informational purposes only and should not be acted upon without first consulting legal counsel. It is not intended to constitute legal advice.