BALTIMORE — Small businesses in Maryland that provide paid sick and safe leave to their employees will soon be able to apply for a refundable tax credit administered by the Maryland Department of Commerce.
The Small Business Relief Tax Credit offers businesses that meet certain criteria a state income tax credit of up to $500 per employee and $7,000 per small business for every year in which they qualify.
Any type of small businesses, including nonprofits, may apply for the credit as long it has 14 or fewer employees. Businesses may apply every year for each employee making less than 250 percent of the annual federal poverty guidelines for a single-person household (currently $30,350 per year).
The Maryland Department of Commerce will begin accepting applications for the credit for tax year 2018 on Jan. 3. More information about eligibility requirements and how to apply can be found at http://commerce.maryland.gov/fund/programs-for-businesses/small-business-relief-tax-credit.