By Kevin Anderson, Maryland Commerce Secretary
On a recent visit to ION Storage Systems in College Park, Md., Maryland Governor Wes Moore praised the innovative solid-state battery manufacturer as “a Maryland original.”
The company, which grew out of research conducted at the University of Maryland, is developing next-generation batteries with applications in the defense, aerospace, medical, consumer, electric vehicle and grid-storage industries. “Their success underscores our state’s growing leadership in science, technology, and advanced manufacturing,” said Moore.
ION Storage Systems was one of 11 recipients in the first round of the Maryland Department of Commerce’s Build Our Future Grant Pilot Program, which provided up to $2 million to projects supporting innovation infrastructure development in eligible technology sectors including advanced manufacturing, aerospace, artificial intelligence, biotechnology, defense, energy and sustainability, quantum, and more.
The program, one of Governor Moore’s signature initiatives during his first year in office, provided grants totaling $9 million in its first round in Fiscal 2024. Another $7 million has been allocated to the program for Fiscal 2025.
“The support from the Build Our Future Grant Pilot Program is a testament to the governor’s dedication to fostering innovation and supporting companies like ours that are driving technological progress,” said ION Storage Systems CEO Ricky Hanna.
Since taking office in early 2023, Governor Moore has been laser-focused on making Maryland’s economy more competitive; the Build Our Future Grant Program is just one example of how Maryland is boosting its competitiveness by investing in innovative companies and industry sectors.
Commerce’s Maryland Manufacturing 4.0 Grant Program provides funding to small and mid-sized Maryland manufacturers to invest in “Industry 4.0” technologies and machinery so they can remain competitive and drive growth. Industry 4.0, sometimes referred to as the fourth industrial revolution, focuses on digitization and automation.
Investing in these businesses will help keep the state’s maker businesses thriving while ensuring that “the industries remain innovative and competitive, and ultimately bring more business opportunities to Maryland,” said Governor Moore.
Since the program’s inception in 2023, 49 businesses have received a total of $2 million in grant funding. Examples include grants to Hub Labels in Washington County to purchase a robot to move inventory through its printing facility, Union Craft Brewing in Baltimore City to purchase an automated cartoner to package its products, and Compendium Federal in St. Mary’s County to purchase a 3D modeling printer.
“These grants impact businesses in each region of our state,” said Maryland Commerce Secretary Kevin Anderson. “We couldn’t be happier to help them succeed as the manufacturing industry evolves.”
In addition to those and other grant programs, Maryland Commerce offers a suite of targeted tax programs that are tailor to support growth for businesses of all sizes across a wide range of industry sectors. Several of these focus specifically on innovation and technology-related businesses.
The Biotechnology Investment Incentive Tax Credit supports Maryland life sciences companies by providing those who invest in qualified biotechnology companies a credit equal to 33 percent of their investments, with potential enhancements available based on where the business is located. Similarly, the Innovation Investment Tax Credit provides a similar benefit to investors in technology and cybersecurity companies. The Research and Development Tax Credit allows businesses to claim eligible research and development expenses, while the Buy Maryland Cybersecurity Tax Credit incentivizes Maryland businesses to purchase cyber products and services from eligible Maryland cyber companies.
Maryland is also working hard to attract data center projects and has put in place several incentives, including a 10-year sales and use tax exemption for data center projects that locate or expand in Maryland and create new jobs. This exemption works hand-in-hand with the Critical Infrastructure Streamlining Act of 2024, which removes a bureaucratic hurdle that was preventing data center projects from installing essential back-up generators that would allow the data centers to remain in operation in an emergency.
“This bill is going to supercharge the data center industry in Maryland,” Governor Moore said at a press conference when he signed the bill into law.
Quantum Loophole, which is developing a major data campus in Frederick County, praised the legislation. Founder and CEO Josh Snowhorn noted in a press release that the economic impact of the bill would reverberate in Maryland for two decades, during which the data center industry was estimated to spur $30 billion in capital expenditures and create over 52,000 jobs. Passing the legislation also helped Aligned Data Centers move forward with their project in the state, which includes a multi-building campus on 75 acres on the Quantum Loophole campus.
The state has also attracted Rowan Digital Infrastructure, which announced plans in fall 2023 to build an 800,000-square-foot green data center on 151 acres of the Quantum Loophole campus, creating the Frederick Clean Cloud Community.
Maryland is also working to attract innovative startup companies from across the world. Commerce’s Maryland Global Gateway Program helps ease international companies’ transition into the U.S. by connecting them with a network partnering incubators and accelerators in Maryland. This allows them to explore Maryland and the U.S. market at a reduced cost, with the hope that these early-stage companies decide to establish a full-time presence in the state.
So far, 39 companies from over 20 countries have participated in the program, with three confirmed to establish a permanent presence in Maryland.
“To keep our business community competitive and flourishing, we must make our state accessible and appealing to an international audience,” said Anderson. “By showing these companies what Maryland has to offer, and providing resources to help foreign companies succeed, we can help support job creation and investment in both Maryland and abroad.”
