Maryland Bill That Would Make GSA Consulting Services Tax Deductible
The Maryland House of Representatives passed Bill 965 with a 126-8 vote on March 22, 2012. This bill, if passed by the Maryland State Senate, will allow for businesses to claim a credit on their State Income Tax Return for GSA consulting services. Individuals or corporations can claim a credit against the State income tax for up to 50% of qualified preparation expenses related to GSA program applications and contract proposals.
The Department of Business and Economic Development would be responsible for the approval of the credit and specified certification. Some stipulations include that there are a limited number of credit available, the credit may not exceed the State income tax for the taxable year and that any unused credit may not be carried over to any other taxable year.
Many companies, especially small businesses, don’t pursue GSA contracts because they don’t understand the process and don’t have the resources to invest in outside assistance. This tax credit would take away that obstacle between businesses and GSA contracts. With such an overwhelmingly majority voting for the bill in the house it seems like a sure thing for it pass in the Senate. Do you think other states will follow?