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Maryland Senate panel rejects tax break for manufacturers

A state Senate committee decided to put off any action on proposed tax breaks for manufacturers until at least next year, deciding there isn't enough time before the end of the 2016 legislative session on April 11 to craft legislation.

Without an up-or-down vote, the Budget & Taxation Committee shelved proposals by Gov. Larry Hogan and Sen. Roger Manno, a Montgomery County Democrat, for tax credits to stimulate the manufacturing sector. The panel's chairman, Democratic Sen. Edward J. Kasemeyer of Howard County, said he might form a work group to study the issue before next year's session starts in January.

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Sen. George Edwards, a Garrett County Republican, said the committee would like to devise a formula that is less complicated and broader than the proposals introduced this year. He said the panel would like any break to include corporate headquarters and distribution centers as well as factories.

Hogan introduced his bill that included property and income tax incentives for new manufacturing facilities in the state and income tax breaks for their employees as part of a larger tax relief package in January.

The measure's failure this year came as no surprise after the Senate did not include it in its own tax cut package this month

Hogan spokesman Doug Mayer vowed that the governor would continue to pursue tax relief for the manufacturing sector.

"Despite the General Assembly's failure to move forward with this innovative legislation – Marylanders can be assured that this is an effort the governor and administration will continue to vigorously pursue," Mayer said.

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