Allegany County is an active participant in the state of Maryland's Enterprise Zone program. Within Allegany County, companies hoping to tap the tax credits available through the program have no problem finding a location well suited to their business needs. Allegany County has three zones,the Gateway Zone, which was designated June 15, 2012, and expires on June 14, 2022, includes most of the City of Cumberland, as well as the North Branch Industrial Park, riverside Industrial Park, Commerce Center and the Upper Potomac Industrial Park. The Frostburg Zone includes the Frostburg Business Park, most of Main Street and the Allegany Business Center at Frostburg State University. The third zone is the Route 220 South Zone which encompasses the Barton Business Park. The designation date for the Route 220 Zone is December 23, 2009. The expiration date is December 22, 2019.
Whether your company wishes to locate in one of the county's business parks or within the county's primary business district, it is relatively easy to qualify. Tax credits are provided for job creation and may include real property improvements.
Under the program, income tax credits are provided for a period of one to three years for wages paid to new employees. In general, a $1,000, one time credit is given for each new worker. However, for economically disadvantaged employees, the credit increases to a total of $6,000 per employee provided over a three year period.
The real property tax credits provide a 10 year credit against local real property taxes on a portion of real property improvements. The credit is provided at 80% for the first five years, with annual decreases of 10% to a low of 30% in the tenth and final year of the credit program.
While the Enterprise Zone program can be very beneficial in certain situations, local standards and your specific business may limit your use of the program. A discussion about what the program means to your business can be held with Matthew W. Diaz, Director, Allegany County Department of Economic & Community Development at 301 777-5967.