Gov. Moore rolls out legislation to enhance economic competitiveness

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Gov. Wes Moore announced Friday that he will put forth legislation to enhance Maryland’s business community and economic competitiveness through a series of measures, including implementing tax credit extensions.

“You can’t have a competitive state without a growing economy, and you cannot have a growing economy without a clear economic strategy,” Moore, a Democrat, said in a statement. “By making big bets on lighthouse industries and investing in Maryland businesses, we are positioning Maryland to lead the nation, drive innovation, and create new pathways to work, wages, and wealth for all Marylanders.”

The legislation, known as the DECADE Act of 2026, is centered on enhancing initiatives administered by the Maryland Department of Commerce and extends the Build Our Future grant program, which provides funding up to $2 million for projects that seek to advance innovation in the tech sector, until 2030.

Under the bill, zone certification and rental assistance eligibility for the RISE Zone program would be extended, and certain eligibility requirements for startup businesses to qualify to participate would be eliminated. Additionally, the administration of the  Economic Development Opportunities program fund will be moved to the Department of Commerce.

“I am enthusiastic to work with the governor and the administration on his roadmap to economic development and revitalization for the state of Maryland,” said Senate Finance Committee Vice Chair Antonio Hayes, D-Baltimore City. “His effort to restructure and incentivize programs, like the Regional Institution Strategic Enterprise Zone (RISE) will help attract businesses and create jobs unlocking the potential of communities where they are located.”

The legislation also reinstates and extends the Research and Development tax credit, which provides 10% of credits for research and development expenses, through 2031, and the Employer Security Clearance tax credit, which provides an income tax credit of up to $200,000 for qualified security clearance administrative expenses, through 2032.

In an effort to encourage film industry growth in Maryland, the bill would also eliminate the $10 million per-production cap for the Film Production Activity tax credit, which offers refundable tax credits for certain costs necessary to film production in the state.

“The past year’s federal actions reminded us of the risk of our super dependency on federal spending,” said House of Delegates Economic Development Subcommittee Chair Lily Qi, D-Montgomery. “This is the time to double down on our resolve to support strategic industries, remove barriers to doing business in Maryland, and expand opportunities for our communities.”