On January 30, 2025, the Maryland Legislature introduced Senate Bill 698, aimed at stimulating economic growth in Washington County through targeted tax exemptions. The bill proposes to exempt sales and use tax on construction materials and warehousing equipment purchased for use in a designated area known as the Mount Aetna Technology Park.

The bill defines "construction material" broadly, encompassing building materials, systems, landscaping supplies, and related equipment. It also specifies "warehousing equipment" as tools used for material handling and storage, including racking and conveying systems. To qualify for the tax exemption, purchases must be made by individuals or entities intending to use the materials or equipment solely within the Mount Aetna Technology Park, which is situated in an office, research, and industry zoning district.

Senate Bill 698 is designed to incentivize development in this targeted redevelopment area, which is accessible from key local roads. The legislation is set to take effect on July 1, 2025, and will remain in force for ten years, expiring on June 30, 2035, unless further action is taken by the General Assembly.

Debates surrounding the bill have focused on its potential to attract businesses and foster job creation in the region. Proponents argue that the tax exemption could lead to increased investment and revitalization of the area, while opponents express concerns about the long-term fiscal implications for the state’s budget and the effectiveness of such incentives in achieving sustainable growth.

The economic implications of Senate Bill 698 could be significant, as it aims to enhance the attractiveness of the Mount Aetna Technology Park for businesses looking to establish or expand operations. If successful, the bill could serve as a model for similar initiatives in other regions, potentially influencing future legislative efforts aimed at economic development across Maryland.

As discussions continue, stakeholders will be closely monitoring the bill's progress and its anticipated impact on local economic conditions.