To help address this problem, the state implemented a tax credit in 2018 to assist Maryland businesses with gaining the fortified security they need to protect their data and workflow against cybercriminal activity.
This tax credit, known as the Buy Maryland Cybersecurity (BMC), is available for businesses within the state that employ a staff of 50 or fewer workers. Qualified companies may submit a claim for cybersecurity expenses and may receive a credit of up to 50% of their net purchase when obtaining the requisite products and services from a Qualified Maryland Cybersecurity Reseller.
For those businesses that meet the necessary criteria, expense summaries and relevant receipts can be submitted for purchases for that tax year. The amount invested per company may not exceed $100,000 with a credit of up to 50 percent of that amount eligible for a possible tax credit. All cybersecurity purchases purchased in 2019 count towards an application to receive this credit, assuming the company meets the criteria for involvement in the BMC Tax Credit program.
There are several requirements which must be met to become what is known as a Qualified Maryland Company. This term applies to companies who are eligible to apply for the BMC Tax Credit. The requisite criteria include:
Hill Tech Solutions possesses the necessary expertise to assist companies with becoming a Qualified Maryland Company and working through the intricacies of applying to receive the BMC Tax Credit.
The Maryland Department of Commerce has compiled a list of approved cybersecurity services sellers and has made a list available on their website. However, it is important for businesses to note that only certain cybersecurity products and services are eligible for the tax credit. The team of IT professionals at Hill Tech Solutions can provide executive-level IT consulting to assist businesses with sourcing the right cybersecurity vendors from which to purchase their products and services and can provide guidance as to which items qualify for the tax credit program.
It is important for all applicants to note that the tax credit funds are not unlimited and are awarded on a first-come, first-served basis.