Launched in 2017, the Opportunity Zone program is a nationwide initiative administered by the U.S. Treasury. The program provides federal tax incentives for investing capital gains into designated communities via special investment vehicles called Opportunity Funds. The 10-year program was designed to encourage both business and real-estate investment in eligible communities.
Since the program’s launch, the State of Maryland has worked to make these designated areas even more attractive by adding its own program opportunities. Below, explore how Frederick businesses & real estate professionals can take full advantage of these local enhancements:
A Venue for Business Fundraising & Real Estate Marketing
Companies in or moving to Frederick’s OZ area seeking to raise new capital, as well local property representatives looking to market opportunities are encouraged to promote their investment opportunities on the State’s Opportunity Zone Information Exchange website. The first-of-its-kind nationwide, the interactive site offers a virtual meeting place for investors, fund managers, property developers, new/expanding businesses, and local stakeholders to connect.
Three census tracks on The City of Frederick’s southeast side were designated as Opportunity Zones.
Maryland-Specific Incentives
The State of Maryland has also developed unique incentives tied to location in Maryland Opportunity Zone areas. These new & altered programs include:
Neighborhood Business Works Opportunity ZOne Microgrant Funding
Tenth Ward Distilling Company recently received a $25,000 Grant Award for an Opportunity Zone expansion
This past fall, the Maryland Department of Housing and Community Development’s Neighborhood Business Works Program offered a special microgrant program for start-up and expanding businesses located within an Opportunity Zone. The $500,000 program was specially designated for businesses with 50 or fewer employees and required a matching contribution. Ultimately, the state offered 13 awards state-wide ranging from $10,000 to $50,000. Among those awarded was Frederick’s own Tenth Ward Distilling Company. The $25,000 award will help facilitate an exciting expansion project creating new production space for the distillery in Frederick’s Opportunity Zone.
The program is not currently open, but may be reopened if additional funding becomes available. Please check the DHCD website periodically for updates.
Maryland Opportunity Zone Enhancement Credits
The State of Maryland also provides enhancements to several of its economic development tax credit programs for businesses located in Maryland Opportunity Zones that meet certain requirements.
These programs include:
More Jobs for Marylanders Income Tax Credit*
* As part of the enhancement, the More Jobs for Maryland tax credit program criteria has been expanded to include non-manufacturers that locate or expand in Opportunity Zones.
Biotechnology Investor Incentive Tax Credit
Cybersecurity Investor Incentive Tax Credit
To qualify for the Opportunity Zone Enhancements, the business must first meet the qualifications of the underlying tax credit program for which it is applying.
Have a new commercial real estate or business opportunity located in Frederick’s Opportunity Zone? Connect with The City of Frederick’s Department of Economic Development to explore more local resources at business@cityoffrederickmd.gov.