Governor Martin O’Malley on Thursday signed legislation intended to foster Maryland’s cybersecurity industry through a new Cybersecurity Investment Incentive Tax Credit. The governor also signed legislation that modifies the state’s InvestMaryland program to make it easier to negotiate with venture capital firms. The bills represent major priorities of the Maryland Department of Business & Economic Development.
Funded at $3 million, the Cybersecurity Investment Incentive Tax Credit provides a refundable tax credit to qualified Maryland cybersecurity companies that seek and secure capital from an in-state or out-of-state investor.
“The passage of the bill is very exciting. It’s going to reinforce the dynamic nature of what’s happening in this industry. We started out largely with government-driven activity in cybersecurity. Now we have a lot of new companies that are developing cybersecurity products for both federal government and government in general, as well as banks, utilities and retailers. And yet, venture capital investors don’t really know much about what’s happening in this community. This is really a way of increasing our profile with those investors, and that’s going to be one of the biggest benefits with this tax credit,” said Ursula S. Powidzki, Maryland DBED Assistant Secretary of Business & Enterprise Development.