Anduril Receives $210 Million Tax Credit

The Baltimore County Council unanimously approved a personal property tax credit valued at up to $210 million on Monday night. The measure applies to Anduril Industries, a California-based defense technology firm with a valuation of $90 billion. The credit will exempt the company from taxes on cranes, machinery, and other equipment at its new site for the next 30 years.

This local incentive is one component of a nearly $500 million package of state and county subsidies. Anduril will use the funds to build a $3.7 billion facility at Tradepoint Atlantic. The planned 2 million-square-foot plant will manufacture submarine parts for the U.S. Navy. County officials project the project will create more than 3,100 permanent jobs. They described it as the largest economic investment in the county’s history.

The tax bill faced minimal debate or opposition before the final vote. Council members and County Executive Kathy Klausmeier applauded after the measure passed. Councilman David Marks stated that the county’s role is to lay the foundation for growth. He called the decision the right choice for the region.

The site in southeast Baltimore County has undergone major changes since the Bethlehem Steel mill closed in 2012. Tradepoint Atlantic took over the land in 2014 and developed it into a logistics hub with warehouses and distribution centers. The company is also partnering with Terminal Investment Limited to construct a new shipping container terminal. Anduril’s factory is expected to be the largest job creator at the location.

Tucker Cavanagh, the county’s deputy administrative officer for economic and workforce development, described the legislation as a step in the transformation of Sparrows Point. He said the project would position the county as a national leader in maritime manufacturing. Anduril specializes in autonomous weapons systems, including submarines, drones, and missiles that use artificial intelligence. Co-founder Palmer Luckey is a major donor to President Donald Trump, who visited the site last month.

Some local residents argued against the public funding during an October 27 hearing. Alexandria Sweeney, a Baltimore resident, urged the council to reject the credit. She questioned why the county should provide money to a company involved in warfare. The council had previously approved a 50-year tax break for Tradepoint and Terminal Investment Limited for the container terminal project.

David Frash, Anduril’s director of state and local government relations, told the council that several states competed for the investment. He said Maryland’s incentives were a major factor in the company’s decision to locate in Baltimore County. Frash noted that the company plans to start construction this year. Hiring is scheduled to begin in 2029, and the facility is set to open in 2030. The state government is also offering $75 million in budgeted funds and approximately $200 million in other incentives.