Maryland Gov. Larry Hogan on Thursday announced a jobs initiative that includes tax incentives for manufacturers and millions of dollars for training and educational programs to prepare people for careers in technology.
The tax measure, which Hogan (R) plans to introduce for the upcoming legislative session, would allow a 10-year state-tax exemption for new manufacturing businesses in high-unemployment areas such as Baltimore and parts of Western Maryland and the Eastern Shore. It would also provide tax credits for existing manufacturers who hire more workers in those regions.
Additionally, the proposal would allow deductions by manufacturing businesses for capital investments such as new equipment and plant expansions of their facilities.
Hogan’s initiative also includes money to open six Pathways in Technology Early College high schools throughout the state; $3 million for grants to fund training in cybertechnology; and $1 million toward a state program that shares up to 50 percent of the cost for manufacturers and technology companies to train their workers.
The P-TECH schools, developed with IBM, combine high school, college and work experience in one program that provides free two-year degrees in careers related to science, technology, engineering and math.
Hogan last year proposed legislation to provide a 10-year tax exemption for new manufacturers and their employees in high-unemployment areas, but neither chamber of the General Assembly voted on the measure.
Some existing manufacturing businesses in the state had raised concerns that the plan would put them at a disadvantage, in part by allowing their competitors to hire their workers away to claim the tax break.
The governor said he expects more support for the plan he put forward Thursday at a Living Classrooms community center in Baltimore, flanked by Mayor Catherine Pugh (D), City Council President Jack Young (D) and state Sen. Nathaniel J. McFadden (D).
“We now have much more support for this one, and it accomplishes a lot more,” he said, noting that his new proposal provides tax incentives for existing companies. “Everyone wants to create more jobs, and everyone wants to help these areas.”