Maryland’s Manufacturing and R&D Personal Property Tax Exemption
Business owners in Maryland are likely familiar with the state’s personal property tax, which applies to tangible personal property such as machinery, equipment, furniture, and computers. What they may not know is that if a business is involved in manufacturing or research and development (R&D) activities, then it could be eligible for significant tax savings on that property thanks to Maryland’s Manufacturing and R&D Personal Property Tax Exemption.
This tax exemption applies to businesses that use qualifying personal property in manufacturing or R&D activities. If qualified, then the property that is directly used in these activities will not be subject to Maryland personal property taxes.
To qualify for the Manufacturing and R&D Exemption, businesses must meet certain criteria. Here is a quick rundown of who qualifies:
- Research and Development: Businesses that focus on experimental or applied research in fields like technology, biotechnology, software development, pharmaceuticals, and engineering may be eligible.
- Manufacturers: Businesses engaged in the process of converting raw materials into finished products through industrial processes, such as assembly, fabrication, or production of tangible goods, may qualify for this exemption.
- Location: The exemption only applies to property located in Maryland.
To claim the exemption, the business must file an application with the state of Maryland by September 1st of the first tax year in which it wishes to claim the exemption.
If qualified, then this exemption represents a great opportunity for a business to cut costs and focus on what it does best – building and innovating. To learn more about eligibility and filing requirements, visit the following website:
