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Enterprise Zone to expand in Maryland

In Maryland, business owners who operate out of an area that has been deemed an Enterprise Zone have some advantages that business owners in other areas may not be able to get. Specifically, they can get tax credits on both their real estate taxes and their income taxes. The amount of credit that they are awarded does have a lot to do with the businesses themselves, as it relates directly to steps that the owners take to create more jobs or to improve the property.

For example, a business outside of the zone may be able to get a $1,000 tax credit when a new worker is hired. Inside of the zone, that same business would net $1,500. On top of that, they could get an 80 percent credit that they can use for up to 10 years.

For those who are working out of Harford County or East Baltimore, things could be changing in the near future. The Enterprise Zones are going to be expanded. This change was just approved by state officials, and it is aimed at attracting additional businesses. In the past, the zones have been used to bring in companies like Kohl's, a retailer that purchased a warehouse and made around 900 new jobs. In addition, the property itself was improved and expanded. The warehouse was only 650,000 square feet when Kohl's bought it, but it is now more than one million square feet.

Anyone in Maryland who is considering starting a new business should take a look at the opportunities that this could provide when it comes to Business formation. An expanded Enterprise Zone could mean more available properties, and it may make sense to buy property within that zone in order to save on taxes.

Source: Source: Biz Journals, "Maryland expands Enterprise Zone Focus Areas in Baltimore, Harford County," Kevin Litten, July 2, 2014

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