Incentives may include expediting permits, tax credits, work force assistance, site identification, county and state financial assistance, and financial assistance from the Small Business Association. For more information and details about specific incentive programs, contact the EDC's Financial Services Program Manager, Andre Plummer at 301-583-5067 or applummer@co.pg.md.us. 

TAX INCENTIVES

New Jobs Tax Credit (NJTC) and Enhanced New Jobs Tax Credit are tax credits against the County property tax imposed on real property owned or leased by a business entity or its affiliates and on personal property owned by that business entity or its affiliates if the business entity qualifies for either credit. The company must notify the County before it obtains the new or expanded premises or hires employees to fill new permanent full-time positions that the business intends to claim the tax credits.

Payment in Lieu of Taxes (PILOT) is an agreement from the county to abate property taxes and instead charge an amount equal to a negotiated PILOT. The payment can range from zero up to the full amount of taxes due or more. In some cases, taxes are deferred rather than abated. A properly structured PILOT can also be used as a better alternative to a tax increment financing. 

New Markets Tax Credit (NMTC) are federally provided, however the Prince George’s County Community Capital Corporation is the local intermediary, which applies to the U.S. Treasury Department to receive New Market Tax Credits (NMTC). These tax credits can be used in variety of ways to facilitate a project by providing an additional equity or financing source.

FINANCE TOOLS 

Tax Increment Financing (TIF) is a mechanism that helps fund public improvements related to economic development such as parking facilities, roadways and other public infrastructure. The County has pre-designated certain areas as pre-qualified and eligible for the use of TIFs for development projects. These areas are the “TIF Districts.” The pre-designated TIF Districts are the New Carrollton Metro Development District, Largo Town Center Metro Development, Prince George’s Plaza Metro Development District, and Suitland-Naylor Road Development District.

SBA 504 Long Term Fixed Assets (Commercial Real Estate and Equipment Loan Program) is available to the more established business owners who desire to purchase owner-occupied commercial real estate. Loans are guaranteed by the U.S. Small Business Administration (SBA). Financing for fixed assets include commercial real estate acquisition, construction, machinery and equipment. Loan terms are 20 years for real estate and 10 years for machinery and equipment. Typically a 10%–20% cash down payment required with personal guaranties.

Small Business Growth Fund is a guaranteed revolving loan fund available to established businesses with at least 3–5 years of profitable operating history. This program is designed to assist emerging growth companies in response to access to new markets and expansion challenges. The program is designed for qualified businesses seeking financing for general working capital, leasehold improvements, inventory, equipment (not rolling stock) purchases, and human capital increases for the purpose of expanding their already-established business.

Microenterprise Loan Fund provides very small loans to business located in Priority Funding Areas designated by the Maryland Department of Housing and Community Development. Funds are available to finance leasehold improvements, equipment purchases, and working capital for start-ups and expanding businesses.

EDI Fund Contractor’s Advantage Program (CAP) utilized $1 million of EDI funds to support County-based contractors seeking lines of credit to finance working capital, equipment, labor and materials. This program provides a maximum 25% guarantee to the bank to support the line of credit. The bank financing the line of credit must be on the County’s pre-approved list to participate in the program.

The VLT Small Business Flex Fund provides flexible funding solutions for small, minority, veteran and woman owned businesses. Also known as the Video Lottery Terminal Fund, the program provides 1.5% of the proceeds from video lottery terminals (slots) to be distributed to businesses within a targeted geographical proximity to Maryland casinos. Loans are up to $250,000.

Revenue Bonds are used to finance the construction of a manufacturing or commercial facility for a private user. The county receives bond authorization from the State of Maryland for the purpose of issuing non-housing industrial development revenue bonds. Authorized projects include manufacturing facilities with a total project cost of less than $10 million.

Parking Revenue Bonds are issued to fund the acquisition, construction or renovation of parking garages, lots and other facilities. The bonds are typically secured by revenues from the garage being financed along with other potential parking revenue sources in the county, including other parking garage, parking tickets, and parking meter revenues. The financing tool allows the county to finance new parking facilities.

WSSC Systems Waiver allows the County Executive to waive the WSSC/SDC (System Development Charge) for eligible revitalization projects and to partially waive the charge for elderly housing and biotechnology projects. Projects must meet the eligibility criteria. Full or partial exemptions from the WSSC Systems Development Charge (SDC) are available in the Enterprise Zone. Up to $50,000 per project; annual maximum countywide is $500,000. A project can be a new building, remodeling of an existing building or remodeling of a portion of an existing building.

For more information about additional tax incentives, please contact Andre Plummer: