On January 31, 2025, Maryland lawmakers introduced House Bill 498, a legislative proposal aimed at stimulating economic growth through the establishment of RISE (Revitalizing Investment for Sustainable Employment) zones. The bill seeks to incentivize businesses to relocate or establish operations within designated areas by offering financial assistance and tax credits.

The primary provisions of House Bill 498 include the creation of RISE zones, which are intended to attract new businesses by providing priority consideration for financial assistance programs. Businesses that move into these zones after their designation may qualify for various incentives, including income tax credits. However, to be eligible, businesses must receive certification from the Maryland Corporation, in consultation with local governments, confirming their alignment with the strategic goals of the RISE zone.

A notable aspect of the bill is its stipulation that businesses already operating in a RISE zone prior to its designation will not qualify for incentives unless they make significant capital investments or expand their workforce. This provision aims to encourage new investments rather than simply rewarding existing businesses.

The bill has sparked discussions among lawmakers regarding its potential economic implications. Proponents argue that it could revitalize struggling areas by attracting new businesses and creating jobs, while critics express concerns about the long-term sustainability of such incentives and the potential for misuse. Amendments to the bill have been proposed to clarify the criteria for significant capital investments and to extend the duration of rental assistance from three to five years for qualifying businesses.

As House Bill 498 progresses through the legislative process, its impact on Maryland's economic landscape remains to be seen. If passed, it could serve as a model for similar initiatives in other states, potentially reshaping how local governments approach economic development and business attraction strategies. The bill's future will depend on ongoing debates and the willingness of lawmakers to address concerns raised during discussions.