1. A. This chapter describes the:

   1. (1) Requirements for a qualified investor to receive a certificate allowing it to claim a credit against the State income tax for an investment in a qualified Maryland biotechnology company;
   2. (2) Criteria to be applied by the Department of Commerce to determine whether a company will be certified as a qualified Maryland biotechnology company; and

   3. (3) Procedures to be used by the Department of Commerce to:

      1. (a) Receive, review, and approve or disapprove applications by investors claiming eligibility for the tax credit;
      2. (b) Determine whether investors are qualified investors;
      3. (c) Perform a criteria-referenced assessment and evaluation of companies to determine eligibility for certification as a qualified Maryland biotechnology company;
      4. (d) Issue initial and final tax credit certificates;
      5. (e) Issue certificates that a company is a qualified Maryland biotechnology company;
      6. (f) Monitor and audit investments in qualified Maryland biotechnology companies;

      7. (g) Monitor, audit, and make inquiries about:

         1. (i) The continued eligibility of tax credit certificate holders for tax credits;
         2. (ii) The continued eligibility for certification as a qualified Maryland biotechnology company; and
         3. (iii) The continued presence of a qualified Maryland biotechnology company, and the continued maintenance by it of its headquarters and the base of its biotechnology activities, in the State;
      8. (h) Rescind or revoke initial or final tax credit certificates; and
      9. (i) Rescind or revoke certificates that a company is a qualified Maryland biotechnology company.
2. B. The Comptroller of the Treasury administers the tax credit, any recapture or assessment procedures in connection with the tax credit, and the Reserve Fund.

Authority: Economic Development Article, §2-108; Tax-General Article, §10-725; Annotated Code of Maryland

Effective date: December 7, 2006 (33:24 Md. R. 1907)

Regulations .01—.11 repealed and new Regulations .01—.15 adopted effective September 17, 2012 (39:18 Md. R. 1197)

Regulation .02B amended effective May 23, 2016 (43:6 Md. R. 589)

Regulation .06C amended effective May 23, 2016 (43:6 Md. R. 589)