Commerce, industry push to expand Maryland cybersecurity tax credit (SB 25)
Loading...
Summary
Commerce and cybersecurity industry groups urged the committee to approve SB 25 to make the Maryland cybersecurity tax credit refundable, raise seller and buyer caps, and remove company‑size limits so more nonprofits and small firms can access the program.
Maryland Commerce Secretary Harry Coker and industry groups told the Senate Budget and Taxation Committee that Senate Bill 25 would strengthen and increase utilization of the state's cybersecurity tax credit.
Coker said the bill would rebrand the program as the "Maryland Cybersecurity Tax Credit," make the credit refundable so nonprofits and organizations without income tax liabilities can receive funds, raise the revenue cap for qualified sellers from $5 million to $10 million, and increase allowable credits per buyer from $200,000 to $1,000,000. He said the measure includes a sunset date to evaluate effectiveness.
Witnesses from the Maryland Tech Council, the Cybersecurity Association of Maryland, and multiple participating vendors described operational barriers under current statute: the prior 50‑employee buyer cap, uncertainty about how the NIST framework is operationalized, and limits that push growing local sellers out of the program. Michael Cohn, CEO of Summit Business Technologies, said nonprofits in particular are excluded and would benefit from a refundable credit; Ron Hill, a cybersecurity business owner, said raising the seller revenue cap would let small firms grow with the program rather than be forced out.
Supporters said the bill would keep cybersecurity spending within Maryland firms, protect small business customers, and grow the sector. The committee heard questions about eligibility and operational guidance; no final vote was taken.
