Maryland's DECADE Act revamps cybersecurity credits and boosts small business funding

The Maryland General Assembly's Ways and Means Committee convened on March 4, 2025, to discuss the DECADE Act, a significant piece of legislation aimed at revitalizing the state's economy through strategic investments and reforms. Acting Secretary of the Maryland Department of Commerce, Harry Coker, emphasized the need for Maryland to adapt to complex economic challenges by enhancing its support for local businesses, particularly in the cybersecurity sector.

Coker outlined key provisions of the DECADE Act, which include revamping the Maryland cyber credit program. Notable changes involve removing restrictions on company size for qualified buyers, increasing revenue limits for sellers, and making the tax credit refundable. This approach aims to incentivize Maryland businesses and nonprofits to invest in local cybersecurity products and services, thereby enhancing overall security and supporting the state's cybersecurity industry.

The meeting also highlighted the importance of small business assistance programs, specifically the Maryland Small Business Development Financing Authority (MSBITSA) and the Small Minority and Women-Owned Business Account (SMOWOVA). Coker noted that splitting revenue streams between these programs would provide sustainable funding for disadvantaged borrowers who often struggle to access traditional banking services.

Kelly Schultz, CEO of the Maryland Tech Council, expressed strong support for the DECADE Act, praising its focus on key industry sectors such as life sciences, IT, and aerospace. Schultz emphasized the importance of extending the research and development tax credit program, which has proven beneficial for many Maryland businesses in fostering innovation and job creation.

Mark Anthony Thomas, CEO of the Greater Baltimore Committee, echoed these sentiments, stating that the DECADE Act is crucial for positioning Maryland as a competitive economy. He highlighted the need for improved economic development tools and the alignment of state resources with strategic industries to drive growth.

Concerns were raised by Delegate Buckle regarding the potential impact of the bill on economically disadvantaged areas, particularly in Western Maryland. He urged the administration to consider maintaining geographic incentives to ensure equitable economic development across the state. The administration responded positively, expressing a willingness to collaborate on refining the bill to address these concerns.

Delegate Hartman also voiced apprehensions about the impact of budget cuts on tourism, a vital sector for the Eastern Shore. He sought clarity on how the DECADE Act would support diverse geographic needs across Maryland.

The committee's discussions underscored a collective commitment to fostering economic growth through targeted investments and support for local businesses, with a focus on ensuring that all regions of Maryland can benefit from these initiatives. The DECADE Act is poised to play a pivotal role in shaping the state's economic landscape in the coming years.