On January 15, 2025, the Maryland General Assembly's Business and Technology (B&T) Committee convened to discuss Senate Bill 91, a legislative proposal aimed at addressing the state's structural budget deficit through economic growth and job creation. The meeting highlighted the importance of fostering a robust private sector, particularly in the technology and biotechnology fields, as a means to stimulate the economy.

Senator Feldman, a key proponent of the bill, emphasized that the cornerstone of resolving Maryland's budget challenges lies in revitalizing its stagnant economy. He announced a significant investment of $128 million dedicated to economic development and job growth initiatives. Feldman outlined the bill's framework, which is modeled after a successful program in New Jersey that has been operational for 25 years. The proposed legislation would establish an income tax benefit transfer program, allowing early-stage tech companies to convert unused net operating losses and research and development tax credits into cash by selling these benefits to larger companies at a minimum rate of 80 cents on the dollar.

This initiative aims to provide much-needed liquidity to small businesses struggling to survive what Feldman described as the "valley of death," a critical phase where many startups face financial challenges. The program would be administered by the Maryland Department of Commerce and the Comptroller's office, with oversight from the Maryland Economic Development Commission, which would evaluate and recommend sectors most likely to benefit from this financial support.

The meeting also featured testimonies from representatives of the Maryland Energy Innovation Institute and the Maryland Clean Energy Center, who expressed strong support for the bill. They highlighted the positive impact of previous legislation on job creation and investment in the state, noting that the Maryland Energy Innovation Institute alone has helped establish 58 new companies and raised significant private and grant funding.

The discussions underscored a collective belief that enhancing access to capital for startups is crucial for driving economic growth and innovation in Maryland. The committee members acknowledged the potential of Senate Bill 91 to not only support emerging tech companies but also to contribute to the state's overall economic health.

As the committee moves forward, the next steps will involve further evaluation of the bill, potential amendments, and continued discussions on how best to implement these initiatives to maximize their impact on Maryland's economy. The outcome of this legislation could play a pivotal role in shaping the future landscape of business and technology in the state.