Advocacy

Policy Priorities

Creating a strong economy for the betterment of all Marylanders is an imperative for public and private sector leadership. Collectively, the Tech Council of Maryland (TCM), and its two divisions, MdBio and the MdTech, strive toward the goal of a strong regional economy where technology and biotechnology companies can grow, flourish and help make Maryland a great place to live and work in today’s competitive and knowledge-driven global market. To spur innovation and growth, as well as the family-supporting jobs they provide, policymakers must focus on a variety of priorities including a strong higher education system, good transportation infrastructure, a fair tax system and creating a workforce that meets tomorrow’s needs. With these basic principles in place, Maryland can excel in the competitive global technology economy.

TCM’s Top Priorities

Repeal the 6% sales tax on computer services. Repealed!
Support the Biotechnology Investment Incentive Act and the Research and Development Tax Credit as well as economic development partners such as the Maryland Technology Development Corporation (TEDCO) and the Maryland Department of Business and Economic Development (DBED).
Oppose corporate tax changes that disadvantage Maryland’s technology and biotechnology companies, most notably combined reporting.
Invest in transportation infrastructure with a focus on long-term, stable funding solutions for the Transportation Trust Fund.
Support a competitive higher education system that meets the needs of tomorrow’s knowledge economy workforce.

Advanced Technology

Legislators should repeal the computer services sales tax that was authorized during the 2007 special session. This tax makes Maryland less competitive in the region’s knowledge economy. Furthermore, it hurts technology businesses and those that need their services and has proven in other states to be difficult to administer, complicated and burdensome. It is also important to recognize the critical need for policies that allow access to capital from angel, seed and venture capital investors for entrepreneurs and young, growing companies to succeed. A more predictable Research and Development Tax Credit with a higher cap is vital to these efforts. Additionally, policymakers should support the budgets for TEDCO and DBED, which provide vital economic development incentives for technology companies in every stage of development. In particular, robust funding is needed for DBED’s Challenge Fund and Enterprise Fund, which provide valuable assistance to seed-stage and emerging companies. Support of incubators, research parks, university and industry research, technology licensing and commercialization are vital to Maryland’s economy and entrepreneurial spirit.

Biotechnology

Maryland’s policymakers must continue to encourage entrepreneurship in the life sciences by making strong commitments to the engines that drive this industry. Most importantly, strong funding support is needed for the Biotechnology Investment Incentive Act, a critical component for seeding early stage biotechnology companies to develop and thrive in Maryland instead of elsewhere. It is also important to continue funding stem cell research, which creates growth opportunities for Maryland biotechnology life sciences. Additionally, policymakers should strongly consider, after careful study, recommendations of the Maryland Life Sciences Advisory Board. Life sciences companies also need research parks and business incubators where innovation can grow and flourish. Finally, policymakers should avoid changes that stifle innovation, including attempts to change or create laws regarding prescription drug importation, price controls, clinical trials and biomedical research.

Higher Education

While Maryland’s higher education system has become a national leader in recent years, it is important to build on this success. An important step is to ensure the higher education system is affordable to Maryland’s families. It is also vital that funding for universities and colleges remain stable and predictable. Higher education funding needs to remain a priority for policymakers because an educated workforce is important for Maryland to be competitive in the knowledge economy and meet the high demand for skilled workers. Finally, policymakers should continue to recognize and support Maryland’s network of community colleges, which play a large role in Maryland’s technology engine.

Transportation

It is important that policymakers make transportation, particularly in the Maryland/Virginia/Washington, D.C. region, a priority when considering project planning and long-term funding stability. Building the Inter-County Connector, while simultaneously focusing appropriate resources on mass transit options, should remain a priority. This can only be accomplished through long-range transportation planning, a strong funding plan and commitment to Maryland’s Transportation Trust Fund.

Tax Climate

Policymakers must maintain a fair, equitable and consistent tax climate that balances the needs of the business community with that of budgetary responsibility. A strong business climate with a competitive corporate tax structure ultimately helps grow tax revenues over time. By keeping in mind the long-term impact of tax proposals, Maryland’s tax climate has remained competitive with surrounding and competitor states. Tax climate is often an important consideration for companies considering expansion or relocation. Specifically, proposals like combined reporting make Maryland less competitive than surrounding states and should not be considered.

Workforce

Maryland’s policymakers should encourage continued efforts to create, attract and retain a highly educated and skilled workforce. Particularly in competitive technology-related fields, many employers report that they have a number of unfilled jobs in this region. One of the biggest impediments to Maryland’s continued growth of advanced technology businesses is lack of qualified workforce to fill these largely high-paying jobs. Finally, it is important to support Maryland’s higher education system, motivate graduating students to stay in Maryland and encourage student interest in science, technology, engineering and mathematics.

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