The Maryland Department of Business and Economic Development (DBED) today announced the designation of the Federalsburg Enterprise Zone in Caroline County. In addition, DBED also approved an expansion and re-designation of the Chesapeake Enterprise Zone in Baltimore County, as well as an expansion of the Cecil County Enterprise Zone. Enterprise Zones enable jurisdictions to provide businesses located within the zones with income tax and property tax credits to help create and retain jobs.
“I am pleased to designate Caroline County’s first Enterprise Zone and help expand zones in Baltimore and Cecil counties,” said Governor Larry Hogan. “The zones help sustain existing businesses and attract much-needed new businesses, allowing us to achieve our most important goal of creating and retaining jobs.”
Last year, businesses located in the State’s 28 Enterprise Zones received more than $17 million in property tax credits, which have contributed to $2.7 billion in capital investment in Maryland businesses in last year alone, and $13.7 billion over the past 5 years.
The Federalsburg Enterprise Zone covers more than 530 acres, including downtown Federalsburg, as well as three industrial parks and other key commercial buildings. The designation of an enterprise zone will help Federalsburg spur economic development, increase the number of jobs, and reduce poverty rates. This is the first time Caroline County has applied for the program.
“Federalsburg is the economic engine of Caroline County,” said Federalsburg Mayor William Beall. “We have growing companies ready to take advantage of the Enterprise Zone benefits, and we’re excited about the new businesses that the Zone will attract.”
The North Point Enterprise Zone, which expires this year, has been renamed the Chesapeake Enterprise Zone and expanded by more than 3,000 acres. The re-designation will help Baltimore County retain and expand existing companies, while encouraging out-of-town companies to relocate and take advantage of the industrial, warehouse, distribution, and Port-related opportunities on the Sparrows Point Peninsula and the Middle River Depot, a former World War II aircraft factory.
“Over the past twenty years, enterprise zone designation has been a catalyst for more than $300 million in new private investment in eastern Baltimore County,” said Baltimore County Executive Kevin Kamenetz. “With the expansion of the Chesapeake Enterprise Zone to 7,000 acres, we can further leverage these targeted tax benefits to bring new jobs and businesses to Sparrows Point, Dundalk and Middle River, the region’s traditional manufacturing and logistics center.”
Additionally, the Cecil County Enterprise Zone has been expanded to include more than 1,000 acres in the Town of Port Deposit, including the former U.S. Naval Bainbridge Training Center and the Tomes Landing Marina. This expansion gives the county nearly 6,000 acres of Enterprise Zone area.
The Enterprise Zone designation is a vital incentive for Cecil County and prospective businesses,” said Lisa Webb, Director of Economic Development for Cecil County. “It has been proven effective in creating job opportunities and encouraging capital investment in our community. We are pleased to include Port Deposit/Bainbridge in the expansion, and believe this positions Cecil to be more competitive and strengthens our growth corridor.”
DBED 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.
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