Maryland Senate converts biotech tax credit into $10 million grant program to spur startups

Senate Bill 247, which would convert Maryland’s biotechnology investment tax credit into a grant program and include a tied appropriation, moved forward in the Maryland Senate on Thursday after committee amendments were adopted without objection.

Sponsor Senator Bridal said the change is intended to boost utilization by smaller biotech businesses and startups across the state. “What we are doing with this bill is converting it from a tax credit to a grant program,” Bridal said, adding that the bill includes an appropriation of $10,000,000 to support the new grant structure.

The sponsor told the chamber the fiscal impact is estimated at $7,000,000 for 2027 and $10,000,000 for fiscal 2028. The committee adopted one amendment to add sponsors and the favorable committee report was adopted without objection; the bill was ordered printed for third reading.

Supporters framed the change as part of a broader growth agenda for Maryland, arguing that a grant structure will encourage smaller companies that cannot yet use tax credits to participate in the program. Opponents did not press a recorded floor debate in the session segments reviewed; committee amendments were procedural (adding cosponsors).

Next steps: SB 247 was ordered printed for third reading; final passage would require a future roll call vote on third reading.

Provenance: Reporting in this article is drawn from the sponsor’s floor remarks and committee report language as read aloud in session.