All Roll Calls
Yes: 213 • No: 10
MarylandSB 03882026 Regular SessionSenateWALLET
Economic Development - Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act
Sponsored By: Malcolm Augustine (Democratic)
Signed by Governor
Economic DevelopmentTaxes - IncomeTaxes - PropertyAllegany CountyAnnotated Code of MarylandAppropriationsArmed Forces and Uniformed ServicesArt, Music, and Cultural Affairs -see also- EthAff; Mus; etcAuditors and AuditsBiotechnologyBonds -see also- County & Baltimore City Bonds; State BondsCommerce and Business -see also- ElectrComm; ForeignTr; etc.Commerce, Department ofCommunity DevelopmentComptrollerCorporations -see also- Municipal Corps; Public Corps & InstData -see also- Census; DemographicsDisabilitiesDisclosureDorchester CountyEnterprise ZonesEvaluations and ReviewsFees -see also- Attys' Fees; Devt Fees & TaxesFinancial Institutions -see also- Banks; Credit Unions; etc.FormsGarrett CountyGeneral Assembly -see also- AELR Cmte; LegislativePolCmteGoods and Services -see also- Retail Sales; TermnSvc; TrfGdsGovernorHousing and Community Development, Department ofIncome TaxInformation TechnologyInterestInvestments -see also- SecuritiesLegislative Policy CommitteeMinority Business EnterprisesMinoritiesNamesNonprofit OrganizationsNoticesPenalties and Sentences -see also- Death PenaltyPilot ProgramsProcurementPublic Corporations and Instrumentalities -see also- HBEReportsRevenue and Taxes -see also- (specific tax)Sales and Use TaxSmall BusinessSomerset CountySunsetTax CreditsTechnology -see also- AeroT; BioT; EnergyT; InfoT; MedT; etcTreasurersWomen -see also- GenderWork, Labor, and Employment -see also- JobTrn; Leave; etc.
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Bill Overview
Analyzed Economic Effects
27 provisions identified: 13 benefits, 2 costs, 12 mixed.
Bigger state surety bonds for contractors
The state financing authority can now act as surety on bonds up to $5,000,000 each. Bonds still need approval based on the contractor’s bond worthiness. The higher cap does not apply to bonds paid with grant funds.
Big property tax credits in RISE zones
Local governments must give a property tax credit for qualified nonresidential business property in a RISE zone. For property in an enterprise area, the credit is 80% of the tax after other required §9‑103 credits, for five years. For property in a focus area, the credit is 100% after §9‑103 credits, for five years. Total credits cannot exceed 100% of the tax in any year. The business must have located in the RISE zone before January 1, 2023.
Refundable tax credit for film projects
Qualified film production companies can claim a Maryland income tax credit for in‑state production costs. If the credit is larger than the tax you owe, you get a refund. You must apply to the Department of Commerce before starting work, and estimated in‑State direct costs must exceed $250,000. If an independent auditor confirms your total budget rose or fell by at least 50%, you can amend your application. The Secretary decides eligibility and the credit year, subject to available credit.
Tax credits for security and secure facilities
For tax years starting after December 31, 2022 and before January 1, 2033, businesses with 500 or fewer employees can claim credits. You can claim up to $200,000 for security‑clearance administrative costs and up to $200,000 for first‑year rent for qualified Maryland space. You can also claim 50% of SCIF construction and equipment costs up to $200,000, with a $500,000 total cap if you build multiple SCIFs.
No sales tax on affiliate transfers
Sales and use tax does not apply to certain services, digital codes, and digital products sold within the same corporate group. Both the seller and the buyer must be members of the same affiliated group under federal rules. This stops sales tax on qualifying transfers between affiliates.
Biotech investment tax credit repealed
The law removes the biotechnology investment tax credit. Investors and qualifying biotech companies no longer get this tax break.
Bigger state financing for small businesses
The law raises the maximum state loan guarantee and direct loan to $3,000,000. It also guarantees up to 90% of a surety’s loss, capped at $3,000,000. The state can provide up to $3,000,000 in equity financing, but any guaranteed equity is capped at 10% of the investor’s amount or $250,000. The Authority cannot guarantee equity for prior owners, managers, or related parties. Sole proprietors can qualify if they have a documented disability that limits access to financing. It is a crime to knowingly submit false information to the Authority.
Loans and grants for Maryland businesses
The Maryland Economic Development Assistance Fund gives loans, grants, or investments to help businesses, local governments, and MEDCO grow jobs and redevelop sites, including aquaculture, arts, child care facilities, and brownfields. Projects usually can get up to 70% of costs; the Fund can pay 100% for the Corporation, arts and entertainment, or Tier I county projects. For child care buildings, the Fund can cover up to 50% of property costs (up to 20% if you have a state‑insured day care loan) and cannot fund working capital. One project can receive at most the lesser of $10 million or 20% of the Fund balance, and loans up to $10 million are allowed for significant strategic opportunities. Eligible applicants include businesses, nonprofits, local governments, the Corporation, individuals, and qualifying local funds, with special rules and plans for Tier I county projects. Recipients must follow minority business procurement rules, and loan interest terms are set by the Department or Authority.
Job tax credits in RISE zones
Your business can get up to $3,000 per qualified economically disadvantaged hire and up to $1,000 per other qualified hire. If you meet the enhanced rules, you can get up to $4,500 per focus‑area disadvantaged hire and up to $1,500 per other focus‑area hire. Hires cannot replace someone employed in that year or the prior three years. The law treats RISE zones like enterprise zones for eligibility, but this Part ends on January 1, 2030, with benefits continuing only until the zone would have expired.
R&D tax credit runs through 2030
The law removes a prior sunset so the R&D credit applies to all tax years that begin after December 31, 1999. The state stops approving new R&D credits for tax years that start after December 31, 2030. If your tax year starts in 2030 but is not a calendar year, you can claim only a prorated credit for the part of the year in 2030.
Help for businesses in RISE zones
The state set up a RISE Fund that can pay rental help for businesses in RISE zones and cover related admin costs. Starting in fiscal year 2027, the Department waives a filing fee each year if your business is in a listed tech sector and you show it located in a RISE zone within 3 years of the fee due date.
More capital for small and minority firms
Commerce gives grants to approved fund managers to finance small, minority, and women-owned businesses. The Department must approve a manager’s loan disbursement within 30 days. At least 50% of eligible account funds (not Strategic Energy Investment Fund money) must go to firms near video lottery facilities. Managers may offer loans and small grants up to $10,000, but a grant must come with a loan. Grant funds can pay admin, actuarial, legal, marketing, and technical costs. Commerce weighs manager performance when setting grant sizes, reviews amounts each year, and adds new managers at least every 3 years.
One business tax credit extended
A business tax credit and its subtitle now end on January 1, 2032, not January 1, 2027. Credits earned before the end can be carried forward, and eligibility can be based on positions filled before termination if other rules are met.
Higher caps for local development projects
For projects the state calls local economic development opportunities, loans or investments can be up to $7,500,000. Grants for those projects can be up to $5,000,000.
More casino funds for small businesses
The state directs 1.5% of video lottery proceeds so that $5 million goes to the Small Business Development Financing Fund. The rest of that 1.5% goes to the Small, Minority, and Women‑Owned Businesses Account. In Allegany County, 0.75% of proceeds go to that account during the facility’s first 10 years.
More state aid for local projects
The maximum state assistance to a local government or MEDCO for a project is now $5,000,000, up from $3,000,000. For Tier I county projects, the Department of Commerce sets the amount instead of a fixed cap. This allows larger financing for local economic development work.
Advanced tech grants with big match rules
The Build Our Future Program gives grants for tech infrastructure through June 30, 2030. A single entity can get up to $2,000,000 each fiscal year. You must provide a match equal to 200% of grants up to $1,000,000, or 400% for grants over $1,000,000 up to $2,000,000. Other State grants do not count toward the match. The Fund may use up to 10% of its appropriation each year for administration. The Corporation can use grant money to take an equity stake in a qualified business. Applicants in RISE zones get priority. If you miss required reports or misuse funds, the Corporation can require you to repay the grant.
Small business financing tools and rules
Maryland creates a nonlapsing Small Business Development Financing Fund and moves prior program obligations into it. The Treasurer invests the Fund and reports each year. The Fund supports contract financing and a guaranty program. The Authority can guarantee up to 80% of a long‑term loan. To qualify as an individual, you must live or do business in the State and show you cannot get reasonable financing, such as due to a disability, other barriers, or failing bank credit rules. If your company is not a sole proprietorship, at least 70% must be owned by qualifying individuals. You must apply on the Authority’s form, and an audited balance sheet can be required. LLCs are clearly eligible as enterprises.
Build Our Future grants: college cap
No more than 50% of yearly grant money can go to colleges and universities. College projects must partner with private industry or show major economic impact or help start technology clusters. The Corporation may adopt rules to run the program.
Strategic deal fund with 60-day review
Maryland redesignates an account as the Strategic Closing Fund to finance major economic development deals. The Treasurer holds the Fund and the Comptroller accounts for it. Before any loan, grant, or investment, Commerce must send detailed materials to the Legislative Policy Committee, which has 60 days to approve. Commerce may later approve limited deal changes that do not weaken the State’s position or expected benefits.
Stronger rules and oversight for deal fund
The Fund can only back extraordinary projects and must include performance terms and clawbacks. It cannot fund sports facilities, projects outside Maryland, or replace other available State or local money. The Legislative Policy Committee may approve exceptions, with priority for high‑unemployment or low‑income areas. The Secretary may approve up to $5,000,000 (more for Tier I county projects), and local governing bodies must sign off by letter or resolution. The Department can adjust performance guidelines with Committee approval and must report finances and project results; the Committee gets 21 days to review. The Fund counts as an economic development program, and it may cover the Department’s admin, legal, or actuarial costs. The State Reserve Fund description is updated to reflect current accounts.
Public tracking of business incentives
The Department publishes a machine‑readable database each year with recipients, credits, payments, job counts, salaries, project costs, and any recaptures with reasons. Reports must include more detail on jobs, pay, benefits, MBE assistance, and state revenue estimates. The Department must also deliver a program evaluation by December 1, 2029. The Corporation can assess institutions and local governments to recapture misused or undistributed funds.
Commerce and Housing co-run development grants
The Department of Commerce now administers the Community Development Block Grant for Economic Development together with the Department of Housing and Community Development. Both agencies share responsibility for this federal grant in Maryland. This can improve coordination for local grant awards.
Harsher penalties for lying on applications
Knowingly making a false statement to the state financing authority is now a more serious crime. A violator faces up to 5 years in jail, a fine up to $50,000, or both. This replaces the old limits of 6 months in jail and a $1,000 fine.
When the law takes effect
Most of the Act takes effect on June 1, 2026. Sections 1, 2, 3, 4, and 6 take effect on July 1, 2026.
When new tax rules start
Section 4 tax rules apply to tax years starting after December 31, 2025. Section 5 tax rules apply to tax years starting after June 30, 2026.
Where Strategic Closing Fund money goes
Investment earnings from the Strategic Closing Fund go to the State General Fund. Loan principal and interest repayments return to the Strategic Closing Fund for future deals. The Fund is held separately, remains nonlapsing, and is invested like other State money.
Sponsors & Cosponsors
Sponsor
Malcolm Augustine
Democratic • Senate
Cosponsors
Pamela Beidle
Democratic • Senate
Benjamin Brooks
Democratic • Senate
Nick Charles
Democratic • Senate
Kevin M. Harris
Democratic • Senate
Shelly Hettleman
Democratic • Senate
Nancy J. King
Democratic • Senate
Clarence K. Lam
Democratic • Senate
Sara Love
Democratic • Senate
Roll Call Votes
House vote • 4/13/2026
Third Reading Passed
Yes: 125 • No: 10 • Other: 5
Senate vote • 4/13/2026
Third Reading Passed
Yes: 45 • No: 0 • Other: 2
Senate vote • 3/23/2026
Third Reading Passed
Yes: 43 • No: 0
Actions Timeline
Approved by the Governor - Chapter 351
5/12/2026Passed Enrolled
4/13/2026SenateThird Reading Passed (45-0)
4/13/2026SenateSenate Concurs House Amendments
4/13/2026SenateThird Reading Passed (125-10)
4/13/2026HouseSecond Reading Passed with Amendments
4/11/2026HouseFavorable with Amendments {783029/1 Adopted
4/11/2026HouseFavorable with Amendments Report by Ways and Means
4/11/2026HouseHearing 4/02 at 1:00 p.m. (Ways and Means)
3/25/2026HouseReferred Ways and Means Economic Matters
3/24/2026HouseThird Reading Passed (43-0)
3/23/2026SenateSecond Reading Passed with Amendments
3/20/2026SenateFavorable with Amendments {103823/1 Adopted
3/20/2026SenateFavorable with Amendments Report by Budget and Taxation
3/20/2026SenateHearing 2/18 at 1:00 p.m. (Budget and Taxation)
1/30/2026SenateHearing canceled (Budget and Taxation)
1/28/2026SenateHearing 2/11 at 1:00 p.m. (Budget and Taxation)
1/28/2026SenateHearing canceled (Budget and Taxation)
1/28/2026SenateHearing 2/04 at 1:00 p.m. (Budget and Taxation)
1/28/2026SenateFirst Reading Budget and Taxation and Finance
1/27/2026Senate
Bill Text
Enacted
5/12/2026
Enrolled
4/13/2026
Third Reading
3/20/2026
First Reading
1/27/2026
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