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TAX PREPARATIONA pro-business climate located in the heart of the mid-Atlantic at the intersection of I-81 and I-70, Washington County, Maryland, is the hub of the tri-state region. Proximity to excellent rail service and nation-spanning highways provide easy access to 50 percent of the nation’s population overnight. Maryland’s sixth largest city and the Washington County seat, Hagerstown is just an hour drive to Baltimore and Washington, D.C.

Washington County employs more than 71,045 workers at its 3,450 companies. Nearly 80 of these businesses have 100 or more workers. Employers like Meritus Medical Center, Citi, First Data, Volvo Group Trucks, FedEx Ground, The Bowman Group, Merkle Response Management Group, and Dot Foods, Inc. already call us home.

New and expanding business projects include Tractor Supply, Baltimore Mack, Sharrett Collision Center, America’s First Incorporated, Primanti Brothers, Tempur Sealy International, Lanco-Pennland, Lenox Hagerstown, MD Distribution Center, Truck Enterprises, Inc., Cycle Aviation and Pinnacle Foods, Inc.

We understand that time is money. So, let our Department of Business Development get to work exploring opportunities for your organization.

Located in western Maryland, bounded by Pennsylvania, Virginia, and West Virginia; extending east to South Mountain, south to the merging of the Shenandoah and Potomac rivers, north to the Mason-Dixon Line, and west to Sideling Hill Creek.

City Miles Kilometers

Atlanta, Georgia 642 1,134

Baltimore, Maryland 71 114

Boston, Massachusetts 451 725

Chicago, Illinois 614 987

New York, New York 239 384

Norfolk, Virginia 252 408

Philadelphia, Pennsylvania 152 245

Pittsburgh, Pennsylvania 156 250

Richmond, Virginia 156 264

Washington, District of Columbia 68 109

HIGHWAY DISTANCES FROM HAGERSTOWN

LOCATION

Land Area 455 square miles

Water Area 12.1 square miles

Elevation 250-2,140 (average 500-800) feet

Natural Resources Limestone, clays, glass sands, potassium salts

Topography Rolling hills, cultivated valleys, little woodlands

Yearly Precipitation 41.1 inches

Yearly Snowfall 20.6 inches

Summer Temperature 72.8 ºF

Winter Temperature 32.5 ºF

Days Below Freezing 117

CLIMATE AND GEOGRAPHY 1

ECONOMICData Summary 2016 Washington County, MARYLAND

100 West Washington Street, Suite 1401 Hagerstown, MD 21740Phone | 240-313-2380 Fax | 240-313-2281

Email | edcinfo@hagerstownedc.org

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INCOME

Distribution County State Nation

Under $25,000 21.7 15.4 23.2

$25,000 - $49,999 23.1 17.9 23.7

$50,000 - $74,999 19.9 17.2 17.8

$75,000 - $99,999 14.0 13.4 12.2

$100,000 - $149,999 13.3 18.1 13.0

$150,000 - $199,999 4.4 8.9 5.1

$200,000 and over 3.5 9.1 5.0

Distribution County State Nation

Median household $56,477 $74,149 $53,482

Average household $70,948 $97,135 $74,596

Per capita $27,173 $36,670 $28,555

Total income (millions) $3,957 $209,422 $8,668,940

HOUSEHOLD REVENUE PERCENTAGES 3 (2010-2014)

HOUSEHOLD REVENUE DOLLARS 3 (2010-2014)

Age Number Percent

Under 5 8,693 5.8

5 - 19 27,782 18.6

20 - 44 47,975 32.1

45 - 64 41,552 27.8

65 and over 23,571 15.8

Total 149,573

Median age 40.4 years

POPULATION DISTRIBUTION 3 (2014)

AIR Hagerstown Regional Airport (HGR) is a Part 139 Facility providing commercial service on Allegiant and Southern Airways Express. HGR offers fixed base operation services to general aviation, corporate and military aircraft. Fourteen businesses offer clients a variety of aviation services for all types of aircraft. Approximately 1,500 people are employed at the airport. Travelers are also within 70 miles of Hagerstown via Dulles International, Baltimore/Washington Thurgood Marshall International and Ronald Reagan Washington National.

BUS Washington County Transit operates public transportation in Washington County with eight fixed urban routes that originate in Hagerstown and service Funkstown, Halfway, Long Meadow, Maugansville, Robinwood, Smithsburg and Williamsport. WCT provides transit for seniors and persons with disabilities through a contracted ride assist voucher program. ADA Complementary Paratransit Service for individuals with disabilities who cannot access fixed-route service and Job Access in cooperation with the Washington County Department of Social Services, are also provided. Total annual ridership averages over 473,000 trips.

SEAPORT The Port of Baltimore, a 50-foot channel is 70 miles east of Hagerstown, with intermodal container facilities serving import and export accounts, accommodating loading and discharge at the seaport. The Virginia Inland Port at Front Royal, VA (48 miles south) serves the region as an interface between truck and rail for ocean-going containers to and from the Port of Norfolk, VA, a 50-foot channel.

RAILCSX Transportation and Norfolk Southern Railway provide economical shipment anywhere on the Atlantic seaboard. CSX, with a public siding, operates daily trains and connects with other major carriers for long-distance shipping. The Norfolk Southern Railway mainline is just outside of Hagerstown and a CSX interchange with Norfolk Southern is in Hagerstown for nationwide access. In January 2014, Norfolk Southern Railway opened a 200 acre inter-modal terminal in Greencastle, Pennsylvania, immediately adjacent to Washington County. The County is also only 19 miles from CSX’s 85 acre inter-modal terminal in Chambersburg, Pennsylvania. Daily Amtrak and weekday MARC passenger services are available from Martinsburg, West Virginia (23 miles south of Hagerstown). MARC passenger service from neighboring Frederick County to Washington, D.C. is also available.

TRANSPORTATIONPOPULATION

POPULATION 2, 3

Years 2000 2010 2020**

WASHINGTON COUNTY

Households 49,726 55,687 60,975

Population 131,923 147,430 160,300

WESTERN MARYLAND*

Population 236,699 252,614 266,050

MARYLAND

Population 5,296,486 5,773,550 6,224,550

* Allegany, Garrett, and Washington counties** Projections Selected places population (2010): Hagerstown 39,662; Boonsboro 3,336; Smithsburg 2,975; Williamsport 2,137; Hancock 1,545; Keedysville 1,152; Funkstown 904; Sharpsburg 705; Clear Spring 358

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E C O N O M I C Data Summary 2016 Washington County M A R Y L A N D

EDUCATION Unique opportunities for career and academic exploration abound at Washington County Public Schools. High school level programs focus on academic rigor and workforce development. WCPS strives to provide enriched programs for students by creating magnet schools including STEM programs. Each year, more high school students take Advanced Placement (AP) and International Baccalaureate (IB) classes. Washington County Technical High School, a two-year school, offers 32 academic courses and 19 career and technology programs, including biomedical science, pre-engineering and skilled trades.

Within a 70-mile radius of Hagerstown, there are more than 30 institutions of higher learning. We are proud of our local education and workforce development leaders, including the Barr Construction Institute, Hagerstown Community College, Kaplan University-Hagerstown, Pittsburgh Institute of Aeronautics and University System of Maryland at Hagerstown (programs provided by Frostburg State University, Salisbury University, Towson University, University of Maryland College Park and University of Maryland University College).

WORKFORCE TRAINING The Western Maryland Consortium provides a wide range of workforce development services for job seekers and employers. Employer services include referral of applicants, customized training and financial aid for on-the-job training, recruitment, and screening assistance.

EDUCATION AND WORKFORCE DEVELOPMENT

Enrollment 23,303

Cost per student $12,157

Student/teacher ratio 14:4

Private 2,422

NUMBER OF SCHOOLS

Elementary 27

Middle 7

Middle/Senior High 1

High 8

Outdoor Education Center 1

Technical High School 1

Special Education 1

Evening High School 1

Private 39

EDUCATIONAL ATTAINMENT

High school graduate or higher 86.1%

Bachelor’s degree or higher 19.9%

EDUCATION 3,8

Choosing to locate in Washington County, businesses gain access to incentive programs designed to support continued business growth. Incentives include:

TAX BENEFITSEnterprise Zone Tax Credit – Businesses locating in Enterprise Zones may be eligible for income tax and real property tax credits in return for job creation and investments.

High Performance Tax Credit – Available for buildings receiving silver, gold or platinum certification from the national Leadership in Energy and Environmental Design (LEED) ranking system. Job Creation Tax Credit – Maryland provides a $1,500 tax credit to businesses that create new jobs to encourage business expansion or relocation to Maryland.

New Jobs Tax Credit – Washington County provides eligible companies with a six-year tax credit against both real and personal property taxes.

Pad-Ready Stimulus Program – Designed to encourage builders to bring undeveloped land to shovel-ready sites and redevelop sites with existing buildings.

Looking for something more tailored? The Fast Track Team and

Department of Business Development are available to guide you through other existing programs to open, grow or relocate in one of our great communities.

ECONOMIC DEVELOPMENT INCENTIVES

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E C O N O M I C Data Summary 2016 Washington County M A R Y L A N D

Corporate Income Tax - 2016

* Based on federal taxable income

* Current rate is 0.00% (State is 8.25%)

Personal Income Tax - 2016

* Based on federally adjusted gross income

* Current rate is 2.80% (State is 2.00%-5.75%)

Sales & Use Tax - 2016

* Manufacturer’s purchase of raw materials, machinery and

equipment, purchase of R&D materials and equipment and

testing of finished products, purchase of computer programs for

reproduction or incorporation into other computer programs for

sale or resale are exempt

* Current rate is 0.00% (State is 6.00%)

Real Property Tax - FY ‘16

* Effective rate per $100 of assessed value

* Some miscellaneous taxes and/or special taxing areas in

the county exist

* Within incorporated areas, County tax varies and a municipal

rate will also apply

* Current rate is $0.948 (State is $0.112)

Business Personal Property Tax - FY ‘16

* Rate is based on $100 depreciated value

* Manufacturing and R&D machinery, equipment, materials and

supples; manufacturing, R&D and warehousing inventory are

exempt

* Within incorporated areas, the County tax varies and a municipal

rate will also apply

* Current rate is $2.37 (State is $0.00)

Other

Depending on the locality, there could be other taxes

levied and administered. For detailed tax and rate information

visit: http://www.dat.state.md.us/sdatweb/taxrate.html

Other Tax Benefits

A&E District, Biotechnology and Cybersecurity Investment,

Enterprise Zone, High Performance Tax Credit, Job Creation,

New Jobs Tax Credit, Pad-Ready Stimulus Program and R&D

TAX RATES 9

Washington County offers a variety of industrial and office properties. Approximately 20 business and industrial parks, including 2 technology parks, are concentrated in the Hagerstown and Williamsport areas with easy access to Interstates 70 and 81. Nearly 2,180 acres are ready for development and approximately 6 million square feet of office, commercial, warehouse, and manufacturing space is available for sale or lease, some with airport runway access.

BUSINESS AND INDUSTRIAL PROPERTY

LABOR AND EMPLOYMENT

Civilian Labor Force (2014 avg) County Labor Mkt.Area*

Total 76,022 333,252

Employment 71,045 316,615

Unemployed 4,444 16,637

Unemployment Rate 5.8 5.5

Commuters

Commuting Outside Washington County 22,209

Commuting Into Washington County 19,596

* Washington and Frederick counties, MD; Franklin County, PA, andBerkeley County, WV

2015 LABOR 4, 5

Washington County’s industrial and commercial properties are featured on CoStar Group, a national commercial real estate information provider and can be accessed at costar.com. Properties are also featured with the State of Maryland’s Location One Information System (LOIS) at locationone.com and the Washington County Department of Business Development maintains available building inventory on its GIS-enabled website at hagerstownedc.org.

Occupation Entry Median Experienced

Accountant 19.00 27.75 35.25

Bookkeeping / accounting clerks 11.75 17.25 20.75

Computer systems analysts 23.50 31.50 42.00

Customer service representatives 10.00 13.25 15.75

Electronic engineering technicians 31.25 35.50 38.25

Freight, stock, material movers, handling 9.75 14.00 17.00

Industrial engineers 31.25 38.50 45.00

Industrial truck operators 11.25 16.75 19.50

Machinists 14.00 24.00 25.75

Maintenance workers, machinery 14.00 21.75 26.75

Network support specialists 18.75 28.50 35.00

Secretaries 11.25 15.75 18.50

Shipping / receiving clerks 11.50 16.25 18.75

Assemblers 13.00 20.75 24.25

Wage estimates for Washington, Allegany, and Garrett countiesmay vary by industry, employer, and locality

2015 REGIONAL HOURLY WAGE RATES 4

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E C O N O M I C Data Summary 2016 Washington County M A R Y L A N D

Industry Annual Avg. Empl. Emp. % Avg. Wkly. Wage

Federal Government 590 0.9 995

State Government 2,485 3.7 884

Local Government 5,917 8.9 803

Private Sector 57,692 86.5 738

Mining & Natural Resources 196 .03 766

Construction 2,726 4.1 854

Manufacturing 6,207 9.3 1,110

Transportation & Utilities 17,148 25.7 623

Information 803 1.2 923

Financial Activities 6,702 10.1 917

Pro. & Business Services 5,642 8.5 795

Edu. & Health Services 10,397 15.6 795

Leisure & Hospitality 6,297 9.4 285

Other Services 1,574 2.1 538

DISTRIBUTION BY PLACE OF WORK 4 (2014)

Employer Product/Service Employment

Meritus Medical Center Healthcare 2,740

Citi Credit card processing 2,300

First Data Credit card processing 2,183

Volvo Group Trucks Diesel engine and transmission manufacturing 1,300

FedEx Ground Package delivery 900

Hagerstown Community College Two-year public college 890

Bowman Group, LLC (The) Developer, hospitality and logistics 745

Merkle Response Management Group Data entry and fulfillment 545

ARC of Washington County Social services 500

Direct Mail Processors Data entry and fulfillment 500

Brook Lane Health Services Psychiatric health treatment 485

Walmart / Sam’s Club Consumer goods 485

Dot Foods, Inc. Food distribution 441

Tractor Supply Company Retail, distribution 431

Giant Food Stores Groceries 420

Weis Markets Groceries 400

Staples Distribution Office supply retail, distribution 392

A.C.&T. Convenience stores, gas stations 350

Sierra Nevada Corporation Aircraft maintenance and repair 343

Lehigh Phoenix Printed book covers 335

JLG Industries Aerial work platforms 300

Home Depot Home improvement products 296

Lowe’s Distribution & Home Improvement Home improvement products 276

Thompson’s Gas Propane gas 275

United Parcel Service (UPS) Package delivery 274

MAJOR EMPLOYERS 6, 7

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E C O N O M I C Data Summary 2016 Washington County M A R Y L A N D

Home to almost 900 farms, the Washington County agricultural community is diversifying in a variety of niche markets including wine, gourmet cheese and customer supported agriculture. As a result, Washington County agricultural product sales have grown to more than $108 million and climbing.

To sustain the current level of agriculture well into the future, Washington County has taken an aggressive approach to agricultural land preservation. To date, 27,000+ acres have been permanently preserved and based on recommendations from an Agricultural Extension Service research project, another 23,000+ acres are earmarked for permanent preservation.

AGRICULTURE

FIRE AND EMERGENCY SERVICES In conjunction with the County Volunteer Fire and Rescue Association, and its 13 volunteer fire stations and 8 emergency medical service companies, the Division of Emergency Services (DES) coordinates oversight for fire and rescue operations. DES provides enhanced 911 communications, emergency management/homeland security and special operations response. A Special Operations Team is a combination career/volunteer organization responsible for hazardous materials incidents, confined space rescues, construction/collapse incidents and technical rescue situations. The City of Hagerstown’s Fire Department operates combination career/volunteer fire departments with six fire stations.

Brook Lane Health Services is an outstanding private, not-for-profit, continuum mental health provider in Washington County. The organization provides special education programs, residential services, hospitalization for children, adolescents and adults, and outpatient services and partial hospitalization services for all ages.

The largest healthcare provider in the region, Meritus Medical Center is a total healthcare system including primary care physician practices, specialists in disciplines from obstetrics to cardiology and satellite services from diagnostics to home medical equipment. A comprehensive approach to wellness in the tri-state area, Meritus is a leader in cutting-edge technology and services for patients.

A specialty hospital and comprehensive care facility, Western Maryland Hospital Center is operated by the State of Maryland and provides a wide range of health and rehabilitative services.

SAFETY HEALTHCARE

HISTORICAL The crossroads of the Civil War, this history rich area is an easy drive from major metropolitan areas. Visitors flock to the Antietam National Battlefield, Appalachian National Scenic Trail, Chesapeake & Ohio Canal National Historical Park, Fort Frederick State Park, and the South Mountain State Battlefield.

ARTS Hagerstown’s Arts & Entertainment District is home to the Maryland Theatre which offers year-round performances and events, including Maryland Symphony Orchestra concerts. The Washington County Museum of Fine Arts features art exhibits and chamber music concerts.

RECREATION Play a round of golf at Washington County’s pristine Black Rock Golf Course. Enjoy family fun at the Hagerstown Ice & Sports Complex, two roller skating rinks, Greenbrier State Park’s mountain lake, Hagerstown Speedway, the Hagerstown Drag Strip, Devil’s Backbone Park, Antietam Recreation Center or fishing and boating on the Potomac River.

EVENTS You don’t want to miss the Alsatia Mummer’s Parade, the Western Maryland Blues Fest, Augustober Fest, Ag Expo & Fair, the Miss Maryland Pageant or the Salute to Independence Celebration at Antietam National Battlefield.

RECREATION AND CULTURE

LAW ENFORCEMENT Washington County, the City of Hagerstown, State of Maryland and towns of Boonsboro, Hancock, and Smithsburg combined, have more than 265 dedicated officers of the law serving and protecting Washington County communities.

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E C O N O M I C Data Summary 2016 Washington County M A R Y L A N D

ELECTRIC Potomac Edison, a FirstEnergy Company, serves the county, and the City of Hagerstown’s Electric Division serves most areas of the city.

GAS Columbia Gas of Maryland serves the area with natural gas. Propane is also readily available.

SEWER Municipal or county systems serve areas throughout the county. Publicly-owned industrial pretreatment facility provides treatment and disposal of non-regulated liquid waste for businesses.

WATER Municipal or county systems serve most areas within the county.

TELECOMMUNICATIONS Digital, fiber optic, wireless data and cellular technologies are all part of the state-of-the-art communications infrastructure. Services are provided through public and private local and regional vendors with broadband speeds up to 1Gbps and Ethernet speeds up to 10Gbps. AT&T, Sprint, and Verizon operate Points-of-Presence within the county.

UTILITIES

HOUSING MARKET

Number of households 61,006

Number of family households 41,118

Number of single member households 18,713

Units Median Sales Price

All arms-length transactions 1,118 $184,250

All multiple-listed properties 1,537 $159,000

HOUSING 2, 3, 10 (2014)

Land - per acre Low High Average

Industrial $30,000 $240,000 $100,000

Office $150,000 $750,000 $340,000

Rental Rates - per square foot

Warehouse / industrial $2.75 $7.00 $4.00

Flex / R&D / Technology $4.00 $16.00 $10.00

Class A Office $10.69 $25.11 $17.04

MARKET DATA PROFILE

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E C O N O M I C Data Summary 2016 Washington County M A R Y L A N D

WASHINGTON COUNTY GOVERNMENT Five County Commissioners elected every four years. The County Administrator is employed by the county. Website: washco-md.net

COUNTY SEAT City of Hagerstown CITY OF HAGERSTOWN GOVERNMENT Mayor and five City Council members elected every four years. The City Administrator is employed by the city. Website: hagerstownmd.org

COUNTY’S BOND RATING AA+ (Standard & Poor’s); Aa1 (Moody’s); AA+ (Fitch)

Washington County, Maryland’s Business Resource Network provides resources and support for start ups and entrepreneurs. Bringing the leading business development partners together under the network increases efficiency and service to the entrepreneur. Starting a business is exciting and rewarding but it takes time, talent and information to bring a business idea to life. Take a moment to browse through the list of partners who collaboratively work together to provide these services for you.

The City of Hagerstown’s Department of Community & Economic Development The Greater Hagerstown Committee Hagerstown Community College’s Technical Innovation Center The Hagerstown-Washington County Chamber of Commerce International Corporate Training & Marketing The Maryland Small Business Development Center SCORE The Western Maryland Consortium

GOVERNMENT

BUSINESS RESOURCE NETWORK

1. Maryland State Office of Climatology

2. Maryland Department of Planning

3. U.S. Bureau of the Census

4. Maryland Department of Labor, Licensing and Regulation

5. U.S. Bureau of Labor Statistics

6. Washington County Department of Business

Development

7. Maryland Department of Business and Economic

Develoment

8. Maryland State Department of Education; Maryland

Higher Education Commission

9. Maryland State Dept. of Assessments and Taxation;

Comptroller of the Treasury

10. Maryland Association of Realtors

SOURCES

Washington County Department of Business Development100 West Washington Street, Suite 1401 Hagerstown, Maryland 21740 240.313.2280 edcinfo@hagerstownedc.org hagerstownedc.org

BUSINESS DEVELOPMENT ASSISTANCE