Zones help to revitalize communities, attract businesses and create jobs
The Maryland Department of Commerce has designated two new enterprise zones – the Chestertown Kent County Enterprise Zone on the Eastern Shore and the City of Brunswick Enterprise Zone in Frederick County – and approved the re-designation of the Greater Aberdeen/Havre de Grace Enterprise Zone. The enterprise zone program, established in 1982, provides real property and state income tax credits to businesses that create jobs and make capital investments.
“By working with our local partners to attract and support businesses, we are creating new opportunities for those areas,” said Commerce Secretary Mike Gill. “Commerce’s finance programs and tax credits are important tools that we can use to encourage companies to expand and add jobs.”
Businesses located in the state’s 29 enterprise zones are expected to receive roughly $32 million in property tax credits in FY 2017 based on more than $2.8 billion in capital investments made in FY 2016. Over the past five years, businesses in Maryland’s enterprise zones have made a total of $13.7 billion in capital investments.
The new Chestertown Kent County Enterprise Zone covers more than 1,000 acres, including commercial and industrial areas, Washington College, and the University of Maryland Shore Medical Center. The designation of an enterprise zone will help existing employers expand, attract new business to the town, and encourage Washington College students to remain in the area after graduation. This is the first time Kent County has applied for the program.
“We are ready to promote the enterprise zone tax incentives and spark more smart growth for Chestertown and Kent County,” said Chestertown Mayor Chris Cerino. “The Maryland Department of Commerce and the county’s economic development office have provided terrific leadership and collaboration throughout the whole application process. When paired with the gigabit Internet infrastructure being installed throughout Kent County, this new designation will really help us attract and expand businesses and create more jobs to keep our beautiful river town vibrant.”
The City of Brunswick Enterprise Zone contains approximately 1,300 acres, surrounding the Main Street district and the business transitional district, as well as the commercial and industrial properties along Petersville and Souder roads. Designating the city as an enterprise zone will encourage business attraction and investment while diversifying employment opportunities for the city’s 6,000 residents. This is also the first time Frederick County has applied for the program.
“This designation will help attract investment and jobs to revitalize Brunswick,” said Frederick County Executive Jan Gardner. “I am pleased to partner to support job creation in Brunswick.”
“The City of Brunswick is excited to receive the enterprise zone designation and honored to be the first enterprise zone in Frederick County,” said Mayor Karin Tome. “We see this designation as an important implement in our economic development tool chest for attracting businesses and investment to Brunswick and assisting those already here with adding employment and improving their buildings. Thanks very much to Frederick County for providing its support and commitment to Brunswick for the enterprise zone designation.”
The Greater Aberdeen/Have de Grace Enterprise Zone, which expired this month, has been re-designated to include nearly 9,000 acres in the cities, extending into Aberdeen Proving Ground and Harford County. The re-designation will help promote commercial and industrial reinvestment, R&D development, lower poverty, and increase the tax base in the county.
“I would like to thank Secretary Gill and the Maryland Department of Commerce for their continued partnership in strengthening our Harford County communities,” said Harford County Executive Barry Glassman. “This expansion and re-dedication of the Greater Aberdeen/Havre de Grace Enterprise Zone will further our efforts to attract capital investment and support local job creation.”
Commerce approves the state’s enterprise zones, while local governments are responsible for their administration. Businesses operating within an enterprise zone may be eligible for a tax credit towards their state income tax filings based upon the number of new jobs created, and a tax credit on their local real property taxes based upon their overall capital investment into a property.
About Maryland Commerce:
The Maryland Department of Commerce stimulates private investment and creates jobs by attracting new businesses, encouraging the expansion and retention of existing companies, and providing workforce training and financial assistance to Maryland companies. The Department promotes the State’s many economic advantages and markets local products and services at home and abroad to spur economic development and international investment, trade and tourism. Because they are major economic generators, the Department also supports the Arts, film production, sports and other special events. For more information, visit commerce.maryland.gov.