August 19, 2024 The Employer Security Clearance Costs (ESCC) Tax Credit provides income tax credits for expenses related to federal security clearance costs, construction of Sensitive Compartmented Information Facilities (SCIFs) and first-year leasing costs for small businesses doing security-based contract work. BENEFITS TO NOTE: • A business may qualify for an income tax credit up to $200,000 per taxable year for qualified security clearance administrative expenses. • A business may also claim a credit against its Maryland income tax for costs related to the construction or renovation of a SCIF located in Maryland. • A qualified small business may also claim a credit against its Maryland income tax up to $200,000 for costs for rental payments during the first year of a rental agreement for leasing spaces to perform security-based contracting work. Applications for this credit must be submitted by September 15th following the year in which the eligible expenses and costs were incurred. Further details about the above benefits, eligibility and how to apply can be found on the Maryland’s Department of Commerce’s website: click here. How KatzAbosch Can Help We encourage government contractors with security costs in Maryland to take advantage of this unique tax credit. By doing so, you could invest these savings into innovation and new talent to help grow your businesses in 2024 and beyond. Please contact your KatzAbosch representative or contact us to discuss further.
