State Senate Passes $37.5M In Tax Credits For Northrop Grumman

ANNAPOLIS (AP) -- The Maryland Senate has passed a measure to provide $37.5 million in tax credits over five years for defense contractor Northrop Grumman as an incentive to keep 10,000 jobs in the state.

The Senate voted 31-13 on Friday for the bill. It now goes to the House.

Supporters say the tax break is a worthy investment for a big economic benefit to the state. They also say it sends a positive message to businesses in a competitive environment as other states use tax breaks to attract companies.

"This is another way to secure Maryland's future," said Senate Budget and Taxation Committee Chairman Ed Kasemeyer, during the debate on the Senate floor.

But opponents, including Baltimore County Democrat Jim Brochin say it's corporate welfare. They say it's unfair to pick just one company to get the benefit.

The bill was filed at the request of the Maryland Department of Commerce in Republican Gov. Larry Hogan's administration.