In the 2016 legislative session there have been two bills submitted that could have a catastrophic affect on existing manufacturers. These bills allow the Maryland Secretary of Commerce Mike Gill to create up to 2 Manufacturing Empowerment Zones in each of the 24 jurisdictions in Maryland. A Maryland jurisdiction is a county or Baltimore City. In these “zones” manufacturers new to Maryland pay no corporate taxes and no income taxes for ten years. Their employees also pay no income tax for 10 years.

During the hearings in Annapolis, not a single manufacturer testified (written or orally) in support of these bills. Support was offered from the Governor’s Office and the Maryland Department of Commerce. Ironically, our research can not find a single manufacturer in support of these bills. Even the fiscal note prepared by the State of Maryland indicates in multiple areas that these bills have a significant fiscal note and potentially will harm the local jurisdictions financially.

It is important to note that 43 of 46 sitting Senators are in support of these bills. We urge you to watch the testimony, read the bills and contact your Senator and Delegate to vocalize your opinion. Your contact with your legislators will make a difference.

SB 386

2/23/16 1:00PM Ways and Means Committee

Video Link –

Time Stamps:

0:01:20 Bill introduction

0:03:33 Secretary Mike Gill offers enthusiastic and full support for SB 386

0:07:55 Delegate Kaiser expresses concern for existing manufacturers

0:11:15 Delegate Walker clarifies that the bill offers 2 zones per jurisdiction per year. That equates to 2 zones per county per year and the same for Baltimore City.

0:15:18 RMI mentioned by Delegate Leudtke

2/24/16 1:00PM Budget and Taxation Committee Hearing
Video Link – 
Time Stamps:
1:31:20 Bill introduction
1:33:12 Support offered by Ben Wu – MD Dept. of Commerce urges a favorable consideration for SB 386.
1:38:00 Support offered by Queen Annes County Economic Development Director
1:41:48 Opposition offered by Scott Macdonald (Maryland Thermoform) and Carl Livesay (Land Sea Air Manufacturing)
1:53:12 Information offered by Mike Galiazzo (RMI)


SB 181

2/10/16 1:00PM Budget and Taxation Committee Hearing

Time Stamps:

1:55:40 Bill introduction

2:01:35 Senator Klausmeyer offers support

2:21:15 Deputy Secretary Ben Wu offers support in concept