New Jobs Tax Credit
The New Jobs Tax Credit encourages businesses to expand their operations and create new employment opportunities in Prince George's County.
The credit provides a reduction in County real property and personal property taxes for qualifying businesses that expand their facilities and create new permanent full-time jobs.
Credit Amount
The credit applies to the County portion of the real property and personal property tax attributable to an eligible business expansion.
The credit is available on a 6-year declining schedule:
| Tax Year | Credit Amount |
|---|---|
| Years 1–2 | 52% |
| Years 3–4 | 39% |
| Years 5–6 | 26% |
| Year 7 and Beyond | No Credit |
Note: The credit applies only to the increased assessment resulting from the business expansion and to qualifying personal property located within the expanded facility.
Eligibility Requirements
To qualify for the New Jobs Tax Credit, a business must:
- Provide written notification to the Office of Finance before:
- Occupying the new or expanded facility; or
- Hiring employees for the new positions.
- Construct, purchase, or lease at least 5,000 square feet of new or expanded commercial space in Prince George's County.
- Create at least 25 new permanent full-time jobs within a consecutive 24-month period.
- Ensure that at least 30% of the new employees are residents of Prince George's County.
- Be located outside a designated Enterprise Zone.
Eligible Properties
The credit applies to:
- Newly constructed commercial facilities.
- Purchased commercial facilities.
- Leased commercial facilities.
- Qualifying personal property, including machinery, equipment, and other business assets located within the expanded facility.
Application Requirements
Applicants must:
- Notify the Office of Finance in writing before occupying the expanded facility or hiring new employees.
- Submit a completed application with all required supporting documentation.
- Provide any additional information requested by the Director of Finance to verify eligibility.
Required Documentation
Applications should include:
- Documentation verifying the acquisition, construction, or lease of the qualifying facility.
- Documentation demonstrating the required minimum 5,000 square feet of expanded space.
- Employment records documenting the creation of at least 25 new permanent full-time positions.
- Documentation verifying that at least 30% of the new employees are Prince George's County residents.
- Documentation supporting the value of any qualifying personal property.
- Any additional information requested by the Director of Finance.
Important Information
- The credit applies only to the County portion of the real and personal property tax.
- The credit applies only to the increase in assessed value resulting from the business expansion.
- Businesses located within a designated Enterprise Zone are not eligible and should instead apply for the Enterprise Zone Property Tax Credit.
- Failure to provide the required pre-notification may affect eligibility for the credit.
Questions?
For additional information, please contact the Office of Finance, Treasury Division.
Email: prop_tax_credits@co.pg.md.us
Customer Service: 301-952-4030
Prince George's County Economic Development Corporation (PGCEDC): 301-583-4650
Authority
- CB-9-2010
- Prince George's County Code, Subtitle 10 (Finance and Taxation), Section 10-235