Moore expands tax-credited enterprise zones in West Baltimore, Eastern Shore

Gov. Wes Moore’s administration expanded Maryland’s tax-incentivized enterprise zones, including an additional 120 acres in Baltimore City and 45 in Kent County, to encourage job creation and investment, according to a Monday announcement.

Enterprise zones are commercial districts in which the government provides tax credits. Broken into multiple geographic areas, Baltimore City’s span nearly 16,800 acres, with the Fairfield, Poppleton, Reisterstown Plaza/Seton Business Park, Upton and Westport areas newly added, according to a news release from Moore’s office.

“The expansion of Baltimore’s Enterprise Zone is a significant win for our city and the businesses that choose to invest here,” Otis Rolley, president and CEO of the Baltimore Development Corporation, said in a statement. “This designation expands one of our most effective economic development tools, helping us attract new investment, support business growth, encourage redevelopment, and create quality jobs in neighborhoods across Baltimore.”

One-time income tax credits of $1,000 are offered for each new employee filling a new position in an enterprise zone. To qualify, employees must be hired to a new position after the business was created in the enterprise zone. They have had to worked at least 35 hours per week for six months, earning 150% or more of the federal minimum wage. At least half of the employee’s time on the clock must be spent in the enterprise zone.

Maryland also offers three-year tax credits for every new, qualified, economically disadvantaged employee. If they stay in their position for at least three years, they can receive $3,000 for the first, $2,000 for the second and $1,000 for the third.

Additionally, 10-year tax credits are available to enterprise zone businesses. Those can be applied to local property taxes on a portion of the expansion, renovation or capital improvement of property, beginning at 80% for the first five years and decreasing by 10% annually for the final five years.

All of these benefits require that a business be certified by local zone administrators.

Enterprise zones allow the government to give boosts to targeted areas. Most of the city neighborhoods being added are located in West Baltimore, which has been historically under-resourced, though Fairfield in South Baltimore is largely industrial.

According to the Maryland Department of Commerce, the state has 31 designated enterprise zones across 19 jurisdictions.

The Chestertown-Kent County Enterprise Zone was expanded by 45 acres, Moore also announced. Covering nearly 1,100 acres, this zone includes commercial and industrial areas, Washington College, the University of Maryland Shore Medical Center, the Chestertown Business Park and the downtown business district.

“By encouraging investment, it has helped bring new life to historic, aging, and previously undeveloped properties,” Chestertown Mayor Meghan Efland said in a statement. “This renewal ensures we can continue to foster thoughtful growth that benefits our local economy and community character alike.” 

Moore also announced the redesignation of the Brunswick’s Enterprise Zone in Frederick County, with its borders changing to emphasize development in the historic downtown area, commercial and mixed-use areas, and Petersville Road commercial corridor, according to the release.

“We are thrilled that the state has renewed Brunswick’s Enterprise Zone designation for an additional 10 years,” Frederick County Executive Jessica Fitzwater said in a statement. “The zone is a dynamic and evolving corridor of redevelopment and we are looking forward to seeing continued revitalization.”