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City and UMD Considering Joint Tax Incentive to Attract Hi-Tech Development

greater-cp-RISEIn 2014, the State created the RISE Zone program to encourage investment and job creation near universities committed to economic development in their communities.

Certain development and businesses within a designated RISE Zone would be eligible for real property tax credits and other benefits.

The City Council supported the University of Maryland application to become a “qualified institution,” which is the first step to submitting an application for a designated RISE Zone. The University has been working with the County, the CPCUP, Riverdale Park, and the City on a draft RISE Zone application. This designation could be an important tool to attract targeted commercial development and jobs, and continue the momentum of investment in our area.

In order to attract high tech businesses to the Innovation District and the research park, the County may provide up to a 75% real property tax credit for five years. The application proposes to offer real property tax credits for businesses and development in industries including “engineering, data analytics, earth sciences, virtual reality, cybersecurity, quantum computing, linguistics, additive manufacturing, e-commerce, robotics, aerospace, biotechnology and similar industries.”

The proposed Zone includes a Baltimore Avenue Subzone in which only the minimum real property tax credits (50% tax credit for year one, and a 10% tax credit for the following four years) would be offered to qualified businesses. Qualified businesses could also be eligible for other support from the University, State, County, and City.

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