Pennsylvania, Delaware, courting Maryland IT Firms

Baltimore Business Journal - by Scott Dance Staff

Pennsylvania and Delaware are going after Maryland information technology companies that might be looking for a way out of paying the state's planned 6 percent tax on computer services. For other companies, an invitation isn't necessary -- they plan to shift growth to other states on their own.

Both states' economic development offices have each reached out to Maryland companies, according to two letters obtained by the Baltimore Business Journal. Neither letter mentions the computer services tax directly, but both tout their respective states as attractive alternatives to Maryland.

John Eckenrode, president of Catonsville's Corporate Professional Services Inc., received a letter from the Delaware Economic Development Office offering information about that state's business environment and work force.

"This letter is not a request for you to consider a relocation of your operations from Maryland," the letter said. "Rather, it is a request for you to include Delaware when you are contemplating an expansion."

Eckenrode said he suspects the agency searched databases of business information for IT firms in Maryland and reached out to other companies as well, because the letter was addressed to Innovative Data Processing Consultants Inc., CPSI's legal name. He plans to talk to the Delaware officials, he said. More here.