Cybersecurity tax credit part of Montgomery County’s effort to become industry hub
From: The Washington Post/Capital Business
Cybersecurity companies in Montgomery County will be eligible for tax credits starting next year as part of the county’s mission to become a national hub for companies that sell cybersecurity products to the private sector.
The Washington region is emerging as a hotbed for the cybersecurity industry, in part because of its proximity to federal agencies, the military and government contractors.
But Montgomery County officials see a niche in courting companies that plan to sell their products to private companies, such as banks or health care providers, rather than buyers in the defense and intelligence sectors.
The Cybersecurity Investment Incentive Tax Credit Supplement Program will offer tax credits to companies located in Montgomery County that have already attracted money from investors and qualify for an identical state tax credit. The exact amount of available funds will be determined next March.
The new credit comes as Montgomery County is set to become home to the recently created National Cybersecurity Center of Excellence, a joint effort with the National Institute of Standards and Technology aimed at devising solutions to pressing cybersecurity concerns.
The tax credit program is modeled in part off of a similar tax credit enacted in 2010 for biotechnology companies. Unlike the cybersecurity program, however, the biotech tax credit is awarded to the investors rather than the life sciences firms they support.
| Print article |