By now you know that cyber threats represent an existential threat to businesses of all sizes. You’ve seen countless stories about ransomware and phishing attempts, social engineering, and even deepfake videos, all designed to separate businesses from their money.
So you know that you need strong cyber defenses in place. What you might not know is that Maryland businesses can get cybersecurity help in the form of tax credits of up to $50,000 in a single year. The Buy Maryland Cybersecurity (BMC) Tax Credit was created in 2018 and is designed to encourage Maryland businesses to seek their cybersecurity solutions within the state’s borders.
Specifically, “Qualified Maryland Companies may claim a tax credit for 50% of the net purchase price of cybersecurity technologies and services purchased from a Qualified Maryland Cybersecurity Seller.”
The first question is, “What’s a Qualified Maryland Company?” It’s really pretty simple, with only two qualifications: The company must have 50 or fewer employees, and must be required to file a Maryland tax return. That company must then choose to do business with a Qualified Maryland Cybersecurity Seller like Hill Tech Solutions.
As to the products and services that qualify, it’s a broad list. The Cybersecurity Seller must perform activities identified by the National Institute of Standards and Technology (NIST) most recent Cybersecurity Framework. This encompasses goods and services designed to detect and prevent unauthorized access to information systems, data exfiltration or manipulation, all of which cover a wide range of services.
Companies may apply for the tax credit for up to $100,000 in cybersecurity purchases in a single year, and may receive a credit of 50%, or up to $50,000.
If all that sounds too good to be true, know that there is one important caveat: There is a limited amount of funding available for the credits in any given year, and credits are awarded on a first-come, first-served basis. 25% of the annual funding is earmarked for cybersecurity service purchases, and the balance for cybersecurity technology purposes.
Many companies have seen cybersecurity costs balloon over the past several years in this age of constant online threats. If you operate a business in Maryland, the BMC Tax Credit could make a significant difference to your bottom line.
Questions about the BMC Tax Credit? Contact Hill Tech Solutions.
