Enterprise Zone

​

 

The City of Crisfield is located within the Crisfield/Somerset County Enterprise Zone, a designated Maryland Enterprise Zone administered by the Somerset County Economic Development Commission. The Enterprise Zone program, established in 1982, provides real property and state income tax credits to businesses that create jobs and make capital investments.

​

The Crisfield/Somerset County Enterprise Zone covers 776 acres and includes commercial areas within the city limits and the municipal airport. The zone is designed to support the redevelopment of waterfront properties, revitalize Main Street storefronts, and attract new businesses to the region.

​

About the Enterprise Zone Program

​

Enterprise Zones are specially designated geographical areas where state and local governments offer monetary and tax incentives to encourage business development in distressed communities. These benefits typically include tax credits, property tax abatements, and financial incentives that lower the cost of doing business within the zone.

​

Tax Benefits for Businesses in the Crisfield Enterprise Zone

​

1. Income Tax Credit — New Employees (General)

​

Businesses receive a one-time $1,000 tax credit for each qualified new employee hired to fill a newly created position in the Enterprise Zone. 

​

Requirements for eligible employees: The employee must have been hired after the business was located in the Enterprise Zone; must have been employed for at least 35 hours per week for six months; must spend at least 50% of work time in the zone; must have been hired to fill a new position (the firm's total full-time positions must increase); and must earn at least 150% of the federal minimum wage.

​

2. Income Tax Credit — Economically Disadvantaged Employees

​

For each qualified new economically disadvantaged employee, businesses receive a three-year tax credit of $3,000 in the first year, $2,000 in the second year, and $1,000 in the third year — for a total credit of $6,000 per worker.

To claim this credit, the employer must be certified by the local zone administrator and obtain certification from the Maryland Department of Labor.

​

3. Real Property Tax Credit

​

Businesses in the Enterprise Zone receive a ten-year tax credit against local real property taxes on a portion of real property expansion, renovation, or capital improvement. The credit is 80% of the "eligible assessment" in each of the first five taxable years, and decreases by 10% annually (70%, 60%, 50%, 40%, 30%) for the subsequent five years.

To qualify, a business must either make an investment in capital improvements or hire new employees.

​

4. One Maryland Tax Credit (additional incentive)

​

Businesses that invest in an economic development project in Somerset County and create at least 25 new full-time jobs may qualify for up to $5.5 million in state income tax credits. Project costs include major capital expenditures related to land acquisition, building construction, rehabilitation, and installation and purchasing of equipment. Businesses may also qualify for a state income tax credit of up to $500,000 of start-up costs.

​

How to Apply

​

Not every business located in an Enterprise Zone is automatically eligible — in order to claim the credit, the business must be certified by the local Enterprise Zone administrator as eligible. 

​

To get started, contact:

​

Somerset County Economic Development Commission 📞 410-651-0500 📧 EDC@somersetmd.us

​

The local economic agency will review an employer's application for Enterprise Zone tax credit eligibility and provide the employer with a letter of certification if eligible. HCEDA Once certified, businesses claim income tax credits using Maryland Tax Form 500CR when filing state tax returns.

​

Ineligible Businesses

​

The following uses are not eligible for Enterprise Zone tax credits: fast-food restaurants, convenience stores, stand-alone gas stations, adult entertainment, and gambling facilities.

​

More Information

​

• Maryland Department of Commerce — Enterprise Zone Tax Credit

• Maryland Department of Labor — Enterprise Zone Tax Credit

• Maryland Enterprise Zone Map — commerce.maryland.gov

• Maryland Economic Development Association — Zone Redesignation Announcement 

• Somerset County EDC — somersetcountyedc.org

Note: Tax credit details are governed by Maryland state law (MD Code, Tax - General § 10-702). Always verify current program status and zone boundaries with the Somerset County Economic Development Commission before making investment decisions.