Md. Code Regs. 24.05.27.04

Current through Register Vol. 51, No. 24, December 2, 2024

Section 24.05.27.04 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Act" means the More Jobs for Marylanders Act at Economic Development Article, Title 6, Subtitle 8, Annotated Code of Maryland.

(2) "Benefit year" means any one of the 10 consecutive taxable years for which the qualified business entity is eligible to receive benefits under the Program.

(3) Business Entity.

(a) "Business entity" means a person conducting or operating a trade or business that is:

(i) Primarily engaged in activities that, in accordance with the North American Industrial Classification System (NAICS), United States Manual, United States Office of Management and Budget, 2012 Edition, would be included in Sector 31, 32, or 33; or

(ii) Located in an opportunity zone.

(b) "Business entity" does not include:

(i) A refiner, as defined in Business Regulation Article, § 10-101, Annotated Code of Maryland;

(ii) A person conducting or operating a trade or business that is providing adult entertainment, as determined by the Department;

(iii) A person conducting a trade or business that is primarily engaged in retail activities, unless the person is operating a grocery store located in an opportunity zone;

(iv) A person conducting a trade or business that is primarily engaged in the sale or distribution of alcoholic beverages;

(v) A private or commercial golf course or country club;

(vi) A tanning salon; or

(vii) A bail bondsman.

(4) "Comptroller" means the Comptroller of the Treasury or the Comptroller's designee.

(5) "Department" means the Department of Commerce.

(6) "Eligible project" means a facility operated by a business entity in a Tier I area or Tier II area.

(7) "Existing business entity" means a business entity that is located in the State at the time it notifies the Department under Regulation .05 of this chapter.

(8) "Final application" means the application submitted by the qualified business entity for certification of the income tax credit for a benefit year.

(9) "Final certificate" means the certificate of the income tax credit for a benefit year.

(10) "Fiscal year" means the fiscal year of the State as defined in State Finance and Procurement Article, § 2-101(a), Annotated Code of Maryland.

(11) "Full-time position" means a position requiring at least 840 hours of an employee's time during at least 24 weeks in a 6-month period (an average of 35 hours per week).

(12) "Income Tax Credit Reserve Fund" means the More Jobs for Marylanders Tax Credit Reserve Fund established under Tax-General Article, § 10-741(d), Annotated Code of Maryland.

(13) "Initial application" means the application submitted by the qualified business entity to reserve the income tax credit against the Income Tax Reserve Fund for a benefit year.

(14) "Initial certificate" means the certificate that the Secretary has reserved the income tax credit against the Income Tax Reserve Fund on behalf of the qualified business entity.

(15) "New business entity" means a business entity that is not located in the State at the time it notifies the Department under Regulation .05 of this chapter.

(16) "Opportunity zone" means an area that has been designated as a qualified opportunity zone in the State under Internal Revenue Code, § 1400Z-1.

(17) "Person" means an individual, corporation, business trust, partnership, limited liability company, association, two or more persons having a joint or common interest, or any other legal or commercial entity.

(18) "Program" means the More Jobs for Marylanders Program established under the Act.

(19) "Qualified business entity" means a new business entity or an existing business entity operating an eligible project under the Act.

(20) "Qualified personal property or services" means personal property or services purchased for use at an eligible project by a qualified business entity that is enrolled in the Program.

(21) Qualified Position.

(a) "Qualified position" means a position that:

(i) Is a full-time position;

(ii) Is of indefinite duration;

(iii) Is a position in a facility of a business entity that is located in an opportunity zone and pays an average annual salary that exceeds $50,000;

(iv) Is a position in a facility of a business entity described in §B(3)(a)(i) of this regulation and pays at least 120 percent of the State minimum wage;

(v) Is located in the State;

(vi) Is newly created, as a result of the establishment or expansion of a business facility in a single location in the State; and

(vii) Is filled.

(b) "Qualified position" includes a position that satisfies the definition set forth in §B(21)(a) of this regulation for which there is a temporary vacancy that is filled within 4 months.

(c) "Qualified position" does not include a position that is:

(i) Created when an employment function is shifted from an existing business facility of the business entity located in the State to another business facility of the same business entity if the position does not represent a net new job in the State;

(ii) Created through a change in ownership of a trade or business;

(iii) Created through a consolidation, merger, or restructuring of a business entity if the position does not represent a net new job in the State;

(iv) Created when an employment function is contractually shifted from an existing business entity located in the State to another business entity if the position does not represent a net new job in the State; or

(v) Filled for a period of less than 12 months.

(d) "Qualified position" does not include a temporary training position but does include a permanent position which is filled by hiring a successful trainee from a temporary training position that does not exceed 3 months in length.

(22) "Secretary" means the Secretary of Commerce or the Secretary's designee.

(23) "State" means the State of Maryland.

(24) "State minimum wage" is the minimum wage rate as defined in Labor and Employment Article, § 3-413(c), Annotated Code of Maryland.

(25) "Sales and Use Tax Credit Reserve Fund" means the More Jobs for Marylanders Tax Credit Reserve Fund established under TaxGeneral Article, § 11-411, Annotated Code of Maryland.

(26) "Tax credit" means the More Jobs for Marylanders income tax credit established under Tax-General Article, § 10-741, Annotated Code of Maryland, or the More Jobs for Marylanders real property tax credit established under Tax-Property Article, § 9 "110, Annotated Code of Maryland.

(27) "Tier I area" has the definition set forth in § 6-801(l) of the Act.

(28) "Tier II area" has the definition set forth in § 6-801(m) of the Act.

Md. Code Regs. 24.05.27.04

Regulations .04 adopted effective 49:7 Md. R.469, eff. 4/4/2022