Manufacturing and Research and Development Exemption Application

As a means of encouraging the growth of manufacturing businesses in Maryland, state law authorizes local governments to exempt from taxation personal property used in manufacturing. The attached application may be used for applying for a manufacturing exemption throughout the state, including research and development activities. The deadline for submitting the application is September 1st of each year. The application contains 14 questions, a schedule for leased property, and an optional flow chart. Questions 10 through 14 only apply to manufacturing operations other than research and development. Three primary requirements must be met in order for us to process your application. You will need to:

  1. Explain the manufacturing or research and development process of your business in detail.
  2. Supply an itemized list of assets for which you are claiming an exemption.
  3. Describe how the assets are used in the process.

If you need any assistance in completing this application, please call the Personal Property Division at (410) 767-1170 or toll free at 1-888-246-5941.

IMPORTANT REMINDERS: Help us to expedite the processing of your application by checking the following points:

  • Please answer all questions completely, especially: 3, 6 and 10.
  • Has the manufacturing/R&D operation been explained in detail?
  • Has a categorized detailed depreciation schedule been provided?
  • Has the use of all manufacturing/R&D equipment been explained?
  • Have lease schedules been supplied?
  • Please supply copies of any documents as the items requested will not be returned.
  • All expenses and fully depreciated property must be reported.

The following items are optional but would be useful in determining if the business qualifies for an exemption:

  1. Photos or a video tape of the business operation step-by-step.
  2. Flowchart of the operation of the business (see attachment 2).
  3. Technical brochures or information on the manufacturing equipment.
  4. Brochures or catalogs on the business’ finished product(s).

Your Information Will Remain Confidential

It is unlawful for any officer or employee of the state or any political subdivision to divulge any particulars set forth in the application or any tax return filed, except in accordance with judicial or legislative order. This information is available to officers of the state in their official capacity and to taxing officials of the federal government, only as provided by statute.


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