MD HB35

Establishes the Income Tax Benefit Transfer Program within the Department of Commerce, allowing eligible technology companies with unused net operating loss deductions or research and development tax credits to sell those benefits to unaffiliated Maryland businesses for at least 80% of their value

Eligible technology companies must have headquarters in Maryland, fewer than 225 U.S. employees, be current on all state taxes, and meet qualified employee thresholds based on company age (1 employee if under 3 years old, 5 if 3-5 years, 10 if 5+ years)

Caps total annual program transfers at $35,000,000 statewide, with a $15,000,000 lifetime limit per company; companies with $250,000 or less in transferable benefits receive full approval, while larger requests are prorated

Requires proceeds from tax benefit sales to fund Maryland operations including salaries, research and development, real estate, working capital, and start-up costs; companies must maintain Maryland headquarters for 5 years or face recapture

Takes effect July 1, 2025, with the Maryland Economic Development Commission annually identifying eligible technology sectors and priority given to clean energy innovation companies