Washington County Overhauls Business Incentives to Drive Job Growth and Investment

Washington County, Maryland, has announced significant updates to its business incentive programs aimed at fostering job creation and attracting investment. According to a press release from the Washington County Board of County Commissioners, these enhancements to the Job Creation and Capital Real Property (JCRP) Tax Credit Program, effective July 1, 2025, are designed to make the county more competitive while safeguarding its tax base. The updates also include the repeal of two previous programs, with their key components integrated into the revamped JCRP initiative.

The JCRP Tax Credit Program has been restructured into three tiers with modified requirements and tax credit schedules. Tier One now necessitates the creation of a minimum of 5 new permanent, full-time positions, an increase from the previous 1. Federal wage and priority funding area requirements have been removed, and the program duration has been shortened from six years to three. The tax credit schedule for Tier One is as follows: 55% in the first year, 40% in the second year, and 25% in the third year.

Tier Two has also seen an increase in its minimum job creation threshold, now requiring 25 permanent, full-time positions, up from 5. Similar to Tier One, federal wage and priority funding area requirements have been eliminated. Businesses qualifying for Tier Two will receive tax abatements on a schedule of 55% for the first two years, 40% for years three and four, and 25% for years five and six.

For businesses making substantial capital investments, Tier Three now requires a minimum investment of $20 million, doubled from the previous $10 million. The new job creation requirement for this tier has also doubled to 200 full-time positions. A key stipulation for Tier Three is that at least 80% of new hires must earn 200% or more of Maryland’s minimum wage. The tax credit schedule for Tier Three begins at 75% for the first five years, decreasing by 5% annually thereafter until it reaches 25% in the fifteenth year.

In conjunction with these JCRP program enhancements, the Washington County Board of County Commissioners has voted to repeal the Pad-Ready Site Stimulus Program and the New Jobs Tax Credit Program. The essential elements of these repealed programs have been incorporated into the updated JCRP Tax Credit Program, consolidating incentives for businesses.

These changes are intended to stimulate economic growth by attracting businesses that commit to creating well-paying jobs, supporting long-term investment, and ultimately expanding the local tax base. This strategic approach aims to provide a stronger return for county taxpayers by encouraging development that contributes to the overall economic health of Washington County. Businesses interested in learning more about the updated incentive programs and eligibility requirements can contact Linda Spence, Financial Programs Administrator for the Washington County Department of Business and Economic Development, via email at lspence@washco-md.net or by phone at 240-313-2286.

Article by Mel Anara, based upon information from Washington County Government

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