MD HB5

Establishes the Maryland New Markets Development Program, administered by the Department of Housing and Community Development, to incentivize equity investments in community development entities that fund low-income community businesses in the State

Creates a tax credit against State insurance premium receipts taxes and retaliatory taxes equal to 12.5% of the qualified equity investment purchase price annually for 4 years (years 4-7), totaling 50% of the investment over the credit period

Caps aggregate credit certificates at $18,750,000 per taxable year and $9,375,000 per biennial application period, with initial applications opening September 1, 2026

Requires qualified community development entities to invest 100% of cash purchase price in qualified low-income community businesses within 1 year, with maximum investments of $15,000,000 per business ($7,500,000 per individual investment)

Authorizes the Department to recapture credits if federal tax credits are recaptured, investments are redeemed early, or entities fail to maintain required investment levels, with a 90-day cure period before final recapture