Maryland Commerce proposes sunsetting incentives, consolidating authorities to focus development tools

Kevin Anderson, secretary of the Maryland Department of Commerce, told the Ways and Means Committee on Jan. 16 that the department will seek to repeal or sunset a series of longstanding incentive programs and consolidate authorities to streamline economic development work.

Anderson said the changes are part of a broader plan to “ensure that this is Maryland’s decade,” and to direct limited state resources toward programs with clearer returns on investment. He presented the administration’s FY26 budget proposals and organizational changes and described requested new funding for several targeted programs.

The administration’s proposals include repealing the job creation tax credit and the One Maryland tax credit program; repealing the employer security clearance costs tax credit; sunsetting the Maryland Industrial Financing Authority (referred to in the presentation as MITFA); and sunsetting the Maryland Economic Adjustment Fund. Ricardo Venn, deputy secretary for innovation and growth, said the job creation credit and One Maryland program have shifting minimum…