Taxes & Incentives

When it comes to expanding and relocating manufacturing firms and non-profit organizations, the HCEDA is your partner for success.  The Authority processes industrial revenue bond applications on behalf of companies and works with Howard County Bond Counsel to introduce appropriate legislation to the city council. Financing terms typically span between 15 to 20 years for real estate and 7 to 10 for equipment acquisitions and are characterized by notably reduced floating or fixed interest rates. Manufacturing businesses can allocate the funds towards several purposes, including land acquisition, new construction, machinery and equipment procurement, and working capital needs up to 25% of the total.

Howard County offers a real property tax credit aimed at incentivizing the relocation and expansion of businesses. The credit is calculated based on the assessed value of newly constructed buildings and can be phased in gradually over a specified period. To qualify, companies must commit to hiring a minimum of 12 new full-time employees and at least a $2 million investment or 10 positions with salaries exceeding the county’s annual average. Eligibility is limited to qualified commercial and industrial firms operating in key sectors such as technology-driven manufacturing, life sciences and medical technology, federal contracting, information technology and national, divisional and regional headquarters.

Howard County has announced its first-ever Enterprise Zone, offering substantial tax incentives to businesses along the Route 1 corridor and in Columbia Gateway. Eligible businesses can benefit from a 10-year property tax credit on new commercial and industrial improvements, starting at 80% for the first five years. Additionally, there’s a state income tax credit of $1,000 for each new full-time employee hired within the zone, with enhanced credits for hiring economically disadvantaged individuals. To learn more about how your business can take advantage of these opportunities, visit the official announcement.

Press Release

With a strong commitment to Environmental, Social and Governance (ESG) Howard County utility companies offer an array of incentives for businesses investing in clean and efficient energy. Whether you’re looking to install solar powered lighting, invest in energy-efficient heating and cooling or build an entire LEED certified facility, Live Green Howard can point you in the direction of flexible financing and incentives programs that cover up to 76% of the costs associated with renewable and clean energy upgrades.