Fill - Free fillable Form 2012: 500CR MARYLAND BUSINESS INCOME TAX CREDITS (Comptroller of Maryland) PDF form

PART A - ENTERPRISE ZONE TAX CREDIT

PART A - I CREDIT FOR ECONOMICALLY DISADVANTAGED EMPLOYEES NOT LOCATED IN A FOCUS AREA

1. Number of qualied employees. First year Second year Third year

2. Credit for rst year (limited to $3,000 of wages paid to each employee). . . . . . . . . . . . . . . . . .

2

3. Credit for second year (limited to $2,000 of wages paid to each employee) ...............

3

4. Credit for third year (limited to $1,000 of wages paid to each employee) .................

4

5. Total (Add lines 2, 3 and 4.) ................................................

5

PART A - II CREDIT FOR OTHER QUALIFIED EMPLOYEES NOT LOCATED IN A FOCUS AREA

6. Number of qualied employees eligible for credit not included in Part A-I ................ 6

7. Credit (limited to $1,000 of wages paid to each employee) .......................... 7

PART A - III CREDIT FOR ECONOMICALLY DISADVANTAGED EMPLOYEES LOCATED IN A FOCUS AREA

8. Number of qualied employees. First year Second year Third year

9. Credit for rst year (limited to $4,500 of wages paid to each employee). . . . . . . . . . . . . . . . . 9

10. Credit for second year (limited to $3,000 of wages paid to each employee) .............. 10

11. Credit for third year (limited to $1,500 of wages paid to each employee) ................ 11

12. Total (Add lines 9, 10 and 11.) ............................................. 12

PART A - IV CREDIT FOR OTHER QUALIFIED EMPLOYEES LOCATED IN A FOCUS AREA

13. Number of qualied employees eligible for credit not included in Part A-III ............... 13

14. Credit (limited to $1,500 of wages paid to each employee) .......................... 14

PART A - SUMMARY

15. Total Enterprise Zone Tax Credit for the current tax year (Add lines 5, 7, 12 and 14.) ........ 15

PART B - RESERVED FOR FUTURE USE

PART C - MARYLAND DISABILITY EMPLOYMENT TAX CREDIT FOR EMPLOYEES

HIRED BEFORE JULY 1, 2013

PART C - I CREDIT FOR EMPLOYEES WITH A DISABILITY

1. Number of qualied employees. First year Second year

2. Credit for rst year (30% of rst $6,000 of wages paid to each employee) .............. 2

3. Credit for second year (20% of rst $6,000 of wages paid to each employee) ............ 3

4. Total (Add lines 2 and 3.) ................................................. 4

SEE INSTRUCTIONS Note: ** Indicates Certication Must Be Attached

FORM

500CR

MARYLAND BUSINESS INCOME TAX

CREDITS

ATTACH TO YOUR 500, 502, 504, 505, 510, or

MW508

COM/RAD 007 12-49 Revised 03/14

FEIN

Check here if any of the following credits are derived from an entity other than that shown

above. Enter the entity’s federal employer identication number. If from more than one,

see instructions. Attach K-1 or other statements from PTEs showing your share of the

credit. For One Maryland Economic Development Tax Credit, see instructions.

Taxpayer Identification Number

Name as shown on Form

2012

Please Print using blue or black ink

or fiscal year beginning 2012, ending

FORM

500CR

2012

MARYLAND BUSINESS INCOME TAX

CREDITS

ATTACH TO YOUR 500, 502, 504, 505, 510, or

MW508

COM/RAD 007 12-49 Revised 03/14

Page 2

PART C - II CREDIT FOR CHILD CARE AND TRANSPORTATION EXPENSES

5. Number of qualied employees. First year Second year

6. Credit for rst year (limited to a combined total of $600 in child care and transportation

expenses per qualied employee with a disability) ............................... 6

7. Credit for second year (limited to a combined total of $500 in child care and

transportation expenses per qualied employee with a disability) ..................... 7

8. Total (Add lines 6 and 7.) ................................................. 8

PART C - SUMMARY

9. Total Maryland Disability Employment Tax Credit for the current tax year

(Add lines 4 and 8.) ..................................................... 9

PART D - JOB CREATION TAX CREDIT ** Must Attach Required Certication

PART D - I CREDIT FOR EMPLOYEES OF A QUALIFIED BUSINESS

1. Total number of qualied positions for the current year ............................ 1

2. Multiply line 1 by $1,000 ................................................. 2

3. Enter 2.5% of wages paid for each position on line 1 .............................. 3

4. Enter the lesser of lines 2 or 3 ............................................. 4

PART D - II CREDIT FOR EMPLOYEES WORKING IN A FACILITY LOCATED IN A REVITALIZATION AREA

5. Total number of qualied positions for the current year ............................ 5

6. Multiply line 5 by $1,500 ................................................. 6

7. Enter 5% of wages paid for each position on line 5 ............................... 7

8. Enter the lesser of lines 6 or 7 ............................................. 8

PART D - SUMMARY

9. Total credits calculated for the current year (Add lines 4 and 8.) ...................... 9

10. Enter the lesser of line 9 or $1,000,000 ....................................... 10

11. Total current year credits available (Multiply line 10 by 50%.) ....................... 11

12. Enter remaining 50% of credits from prior year ................................. 12

13. Total Job Creation Tax Credits that may be claimed this year (Add lines 11 and 12.) ........ 13

PART E - COMMUNITY INVESTMENT TAX CREDIT ** Must Attach Required Certication

1. Amount of approved contributions ........................................... 1

2. Enter 50% of line 1 ..................................................... 2

3. Enter the amount from line 2 or $250,000, whichever is less ........................ 3

PART F - BUSINESSES THAT CREATE NEW JOBS TAX CREDIT

1. Property tax credit (certied by the State Department of Assessments and Taxation) ....... 1

2. Enhanced property tax credit (certied by the State Department of

Assessments and Taxation) ............................................... 2

3. Total (Add lines 1 and 2) ................................................. 3

PART G - LONG-TERM EMPLOYMENT OF QUALIFIED EX-FELONS TAX CREDIT

(FOR EMPLOYEES HIRED FROM 1/1/07 THROUGH 12/31/11)

1. Number of qualied employees. First year Second year

2. Credit for rst year (30% of rst $6,000 of wages paid to each employee) .............. 2

3. Credit for second year (20% of rst $6,000 of wages paid to each employee) ............ 3

4. Total (Add lines 2 and 3) ................................................. 4

FORM

500CR

2012

MARYLAND BUSINESS INCOME TAX

CREDITS

ATTACH TO YOUR 500, 502, 504, 505, 510, or

MW508

COM/RAD 007 12-49 Revised 03/14

Page 3

PART H - WORK-BASED LEARNING PROGRAM CREDIT ** Must Attach Required Certication

1. Number of eligible student employees ........................................ 1

2. Multiply Line 1 x $1,500 .................................................. 2

3. Enter 15% of wages paid to all eligible student employees .......................... 3

4. Enter the lesser of line 2 or 3 .............................................. 4

(Cumulative credit for this year and all prior years may not exceed $1,500 per employee.)

PART I - EMPLOYER-PROVIDED LONG-TERM CARE INSURANCE TAX CREDIT

1. Enter 5% of long-term care insurance costs .................................... 1

2. Multiply the number of eligible employees by $100 ...................... 2

3. Enter the lesser of line 1 or line 2 ........................................... 3

4. Enter the lesser of line 3 or $5,000 .......................................... 4

PART J - RESERVED FOR FUTURE USE

PART K - RESEARCH AND DEVELOPMENT TAX CREDITS ** Must Include Required Certication

PART K - I TO BE COMPLETED IF THE BUSINESS IS NOT CERTIFIED AS A “SMALL BUSINESS” FOR THIS CREDIT

1. Basic credit (3%) as certied by the Department of Business and Economic Development .... 1

2. Growth credit (10%) as certied by the Department of Business and Economic Development . 2

3. Total (Add lines 1 and 2.) Enter here and on line 11 of Part W. ...................... 3

PART K - II TO BE COMPLETED IF THE BUSINESS IS CERTIFIED AS A “SMALL BUSINESS” FOR THIS CREDIT

4. Basic credit (3%) as certied by the Department of Business and Economic Development .... 4

5. Growth credit (10%) as certied by the Department of Business and Economic Development . 5

6. Total (Add lines 4 and 5.) Enter here and on line ++ of Part Y ....................... 6

PART L - BIOTECHNOLOGY INVESTMENT INCENTIVE TAX CREDIT ** Must Attach Required Certication

NOTE: If you are claiming more than one investment see instruction for Part L.

1. Amount of approved investment ............................................ 1

2. Enter 50% of line 1 ..................................................... 2

3. Maximum Credit ....................................................... 3 250,000

4. Tentative refund (Enter the amount from line 2 or line 3, whichever is less.) ............. 4

5. Enter any amount of recapture. See instructions ................................. 5

6. Total Biotechnology Investment Incentive Tax Credit (Subtract line 5 from line 4 and enter this

amount here and in PART Y, line 2. If less than zero, enter negative amount.) ............ 6

PART M - COMMUTER TAX CREDIT

1. Amount of commuter benets paid .......................................... 1

2. Enter 50% of line 1 ..................................................... 2

3. Number of employees for which commuter benets were paid ....................... 3

4. Multiply the number of employee-months by $50 ........................... 4

5. Enter the lesser of line 2 or line 4 ........................................... 5

FORM

500CR

2012

MARYLAND BUSINESS INCOME TAX

CREDITS

ATTACH TO YOUR 500, 502, 504, 505, 510, or

MW508

COM/RAD 007 12-49 Revised 03/14

Page 4

PART N - CLEAN ENERGY INCENTIVE TAX CREDIT ** Must Attach Required Certication

Enter in the box(es) below the number of kilowatt hours of electricity that was:

1. Not co-red with coal . Multiply this number by .85 cents (.0085) .............. 1

2. Co-red with coal . Multiply this number by .5 cents (.005) .................. 2

3. Total (Add lines 1 and 2.) ................................................ 3

4. Enter one-fth of the amount stated on the initial credit certicate .................... 4

5. Enter the lesser of line 3 or line 4. Enter this amount in Part Y, line 3 .................. 5

PART O - MARYLAND-MINED COAL TAX CREDIT ** Must Attach Required Certication

1. Number of tons of Maryland-mined coal purchased in the current tax year ............... 1

2. Multiply line 1 by $3 .................................................... 2

PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX CREDIT **Must Attach Required Certication

Part P - I CALCULATION OF TAXABLE INCOME, WITHHOLDING, QUALIFIED EMPLOYEES AND TAX LIABILITY

Column 1

All qualified persons, but NOT

PTE members

Column 2

PTE members only (enter your

pro rata share from PTE)

Section A

1. Enter your Maryland taxable income (see instructions for Part P-I) .......... 1

2. Enter your share of Maryland taxable income from the project ........... 2

3. Non-project Maryland taxable income (subtract line 2 from line 1;

if less than 0, enter 0.) ....................................... 3

4a. Enter the number of qualied employees (Do Not Prorate) .............. 4a

4b. Have you maintained at least 25 qualied employees for at least 5 years? (Y/N) Yes No Yes No

4c. Tax year in which the project was put in service:

Note: If line 4a is less than 25, and the answer to Question is “N”,

STOP HERE. You may not claim this tax credit.

Note: If line 4a is less than 10, STOP HERE.

You may not claim this tax credit.

4d. Prorate factor (enter line 4a divided by 25; if greater than 1, enter 1.000000) 4d . .

5. Enter the amount of Maryland income tax required to be withheld

from qualied employees ..................................... 5

If PTE, do not complete Section B. Continue to Section C.

Section B

6. Total tax liability:

line 14 of Form 500;

line 22 less any amounts from lines 23 through 25 of Form 502;

line 32c less any amounts from lines 33 through 35 of Form 505;

line 23 less any amount from line 32 of Form 504 for a resident duciary; or

line 25 less any amount from line 32 of Form 504 for a nonresident duciary.

If less than 0, enter 0 ........................................ 6

PTE member: multiply the highest tax rate calculated on your return

by the income on line 1.

7a. Tax on income from the project (see instructions for Part P-I) ........... 7a

7b. Multiply line 7a by line 4d .................................... 7b

8a. Tax on non-project income

(subtract line 7a from line 6; if less than 0, enter 0.) ................... 8a

8b. Multiply line 8a by line 4d .................................... 8b

Section C

9. Total eligible project costs ($500,000 minimum) .................... 9

10. Enter the lesser of line 9 or $5,000,000 ........................... 10

11. Total eligible start-up costs ................................... 11

12. Enter the lesser of line 11 or $500,000. ........................... 12

13. Multiply line 4a by $10,000 ................................... 13

If you are a PTE, stop here. Do not complete Parts II through IV.

FORM

500CR

2012

MARYLAND BUSINESS INCOME TAX

CREDITS

ATTACH TO YOUR 500, 502, 504, 505, 510, or

MW508

COM/RAD 007 12-49 Revised 03/14

Page 5

Part P - II CREDIT AGAINST TAX LIABILITY AND TAX ON INCOME FROM THE PROJECT

Section A Project Costs

14. Enter the sum of project cost credits and refunds taken in prior tax years ............... 14

15. Subtract line 14 from line 9; if less than 0, enter 0. .............................. 15

16. Maryland State tax liability on income from the project (enter the amount from line 7b) ..... 16

17. Credit against tax on income from the project (enter the lesser of line 15 or line 16) ....... 17

Section B Start-up Costs

18. Enter the sum of start-up cost credits and refunds taken in prior tax years .............. 18

All qualified persons

(except for PTEs)

including PTE members

COMPLETE PART P-II to calculate the portion of the credits allowable for this tax year that

will reduce your tax liability

19. Subtract line 18 from line 12; if less than 0, enter 0 .............................. 19

20. Enter the lesser of line 13 or line 19 ......................................... 20

21. Remaining Maryland State tax liability after deducting credits taken for project costs in

Section A (Subtract line 17 from line 6; if less than 0, enter 0.) ...................... 21

22. Nonrefundable portion of the start-up credit. This amount cannot exceed any

remaining tax liability. Enter the lesser of line 20 or line 21 ......................... 22

Part P-III REFUNDABLE CREDIT

Section A Project costs

23. Credit remaining after deducting credit against tax on income from the project

(Subtract line 17 from line 15; if less than 0, enter 0.) ............................ 23

24. Tax on non-project income (enter the amount from line 8b) ......................... 24

25. Tax available for application of credit

(subtract line 17 and line 22 from line 6; if less than 0, enter 0.) ..................... 25

26. Credit against tax on non-project income (enter the lesser of lines 23, 24 or line 25) ....... 26

27. Tentative refund (subtract line 26 from line 23; if less than 0, enter 0) ................. 27

28. Maryland income tax required to be withheld during this tax year from qualied employees

(Enter the amount from line 5) ............................................. 28

29. Refund allowable for this tax year. Subtract lines 26 from line 28 (if less than 0, enter 0)

and enter this amount or line 27, whichever is less. .............................. 29

Section B Start-up costs

30. Tentative refund (subtract line 22 from line 20; if less than 0, enter 0) ................. 30

31. Maryland income tax required to be withheld during this tax year from qualied employees

(from line 5) .......................................................... 31

32. Refund allowable for this tax year (enter the lesser of line 30 or line 31) ................ 32

Part P-IV SUMMARY

33. Total nonrefundable credit for project costs (enter the sum of line 17 and line 26) ......... 33

34. Total nonrefundable credit for start-up costs (enter amount from line 22) ............... 34

35. Total nonrefundable One Maryland Economic Development Tax Credit. (Add lines 33 and 34) . 35

36. Total refundable credit for project costs. (Enter amount from line 29) .................. 36

37. Total refundable credit for start-up costs. (Enter amount from line 32) ................. 37

38. Total refundable One Maryland Economic Development Tax Credit. (Add lines 36 and 37). ... 38

FORM

500CR

2012

MARYLAND BUSINESS INCOME TAX

CREDITS

ATTACH TO YOUR 500, 502, 504, 505, 510, or

MW508

COM/RAD 007 12-49 Revised 03/14

Page 6

PART Q - GREEN BUILDING TAX CREDIT ** Must Attach Required Certication

1. Credit (certied by the Maryland Energy Administration) ............................ 1

PART R - BIO-HEATING OIL TAX CREDIT ** Must Attach Required Certication

1. Credit (certied by the Maryland Energy Administration), may not exceed $500 per taxpayer . 1

PART S - CELLULOSIC ETHANOL TECHNOLOGY RESEARCH AND DEVELOPMENT

TAX CREDIT ** Must Attach Required Certication

1. Credit (certied by Department of Business and Economic Development) ............... 1

PART T - JOB CREATION AND RECOVERY TAX CREDIT **Must Attach Required Certication

(For members of PTEs with qualied employees hired on or after March 25, 2010 but before

January 1, 2011, who continued employment into a Fiscal Year beginning in Tax Year 2011.)

(For Job Creation Tax Credit see Part D)

1. Enter the Distributive or Pro Rata Share of the Job Creation and Recovery Tax Credit

from attached Maryland Schedule K-1 here and on line 4 of Part Y. (See instructions) ....... 1

PART U - MARYLAND FILM PRODUCTION EMPLOYMENT TAX CREDIT ** Must Attach Required Certication

1. Credit (certied by the Maryland Department of Business and Economic Development) ...... 1

PART V - ELECTRIC VEHICLE RECHARGING EQUIPMENT TAX CREDIT ** Must Attach Required Certication(s)

1. Credit (certied by the Maryland Energy Administration) ............................ 1

PART W - BUSINESS TAX CREDIT SUMMARY

1. Total Enterprise Zone Tax Credit from Part A, line 15 ............................. 1

2. RESERVED FOR FUTURE USE .............................................. 2 XXXXXXXXXXXXXX XX

3. Total Maryland Disability Employment Tax Credit from Part C, line 9 ................... 3

4. Total Job Creation Tax Credit from Part D, line 13 ................................ 4

5. Total Community Investment Tax Credit from Part E, line 3 ......................... 5

6. Total Businesses that Create New Jobs Tax Credit from Part F, line 3 .................. 6

7. Total Long-Term Employment of Qualied Ex-Felons Tax Credit from Part G, line 4 ......... 7

8. Total Work-Based Learning Program Tax Credit from Part H, line 4 .................... 8

9. Total Employer-Provided Long-Term Care Insurance Tax Credit from Part I, line 4 ......... 9

10. RESERVED FOR FUTURE USE .............................................. 10 XXXXXXXXXXXXXX XX

11. Total nonrefundable Research and Development Tax Credits from Part K-I, line 3 .......... 11

12. Total Biotechnology Investment Incentive Tax Credit (See Part Y, line 2) ................ 12 XXXXXXXXXXXXXX XX

13. Total Commuter Tax Credit from Part M, line 5 .................................. 13

14. Total Clean Energy Incentive Tax Credit (See Part Y, line 3) ......................... 14 XXXXXXXXXXXXXX XX

15. Total Maryland-Mined Coal Tax Credit from Part O, line 2 ........................... 15

16. Total nonrefundable One Maryland Economic Development Tax Credit from Part P, line 35;

if more than one project, see instructions ..................................... 16

17. Total Green Building Tax Credit from Part Q, line 1 ............................... 17

18. Total Bio-Heating Oil Tax Credit from Part R, Line 1 .............................. 18

19. Total Cellulosic Ethanol Technology Research & Development Tax Credit from Part S, line 1 ... 19

20. RESERVED FOR FUTURE USE. .............................................. 20 XXXXXXXXXXXXXX XX

21. Maryland Film Production Employment Tax Credit (see Part Y, line 5) .................. 21 XXXXXXXXXXXXXX XX

22. Electric Vehicle Recharging Equipment Tax Credit from Part V, line 1 ................... 22

23. Total of current year credits (Add lines 1 through 22) ............................. 23

FORM

500CR

2012

MARYLAND BUSINESS INCOME TAX

CREDITS

ATTACH TO YOUR 500, 502, 504, 505, 510, or

MW508

COM/RAD 007 12-49 Revised 03/14

Page 7

24. Carryover of excess credits from Part X, line 7, of tax year 2011 Form 500CR ............ 24

25. Tentative credit. (Add lines 23 and 24) ....................................... 25

26. Enter amount of any credit recapture. (See instructions for Part D and Part F) ............ 26

27. Tentative credit after recapture. (Subtract line 26 from line 25)

If less than 0, enter negative amount ........................................ 27

28. Enter tax from:

line 14 of Form 500;

line 22 less any amounts from lines 23-25 of Form 502;

line 32c less any amounts from lines 33, 34 and 35 of Form 505;

line 23 less any amount from line 32 of Form 504 for a resident duciary; or

line 25 less any amount from line 32 of Form 504 for a nonresident duciary.

If less than 0, enter 0 ................................................... 28

29. Allowable credit (Enter line 27 or line 28, whichever is less.) ........................ 29

Also enter this amount on line:

15c of Form 500, 26 of Form 502, 34 of Form 504 or 36 of Form 505.

NOTE: An addition to income is required for credits from Parts A, C, G, K and S.

From this part add lines 1, 3, 7, 11 and 19. Enter the result on line 7f of Form 500, line 5 of

Form 502, line 19 of Form 505 or line 3 of Form 504.

PART X - EXCESS CREDIT CARRYOVER CALCULATION

If line 27 is less than or equal to line 28 of Part W, do not complete this section.

1. Enter amount from line 28 of Part W ......................................... 1

2. Add lines 13, 15, 18 and 22 of Part W.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

3. Subtract line 2 from line 1. (If less than 0, enter 0.) .............................. 3

4. Subtract line 2 from line 27 of Part W ........................................ 4

5. Tentative excess credit carryover (Subtract line 3 from line 4.). . . . . . . . . . . . . . . . . . . . . . . 5

6. Enter any amount included in line 5 that will expire by the end of this tax year. ........... 6

7. Subtract line 6 from line 5. (If less than 0, enter 0). This is your credit carryover. ......... 7

PART Y - REFUNDABLE BUSINESS INCOME TAX CREDITS

1. Total refundable One Maryland Economic Development Tax

Credit from Part P, line 38; if more than one project, see instructions .................. 1

2. Total Biotechnology Investment Incentive Tax Credit from Part L, line 6 ................ 2

3. Total Clean Energy Incentive Tax Credit from Part N, line 5 ......................... 3

4. Total Job Creation and Recovery Tax Credit from Part T, line 1 (See instructions) .......... 4

5. Total Film Production Employment Tax Credit from Part U, line 1 ..................... 5

++ Total refundable Small Business Research and Development Tax Credit from Part K-II, line 6 . ++

6. Total refundable business income tax credits (Add lines 1 through 5) .................. 6

Also enter this amount on:

Line 15d of Form 500 or Part H, line 3 of Form 502CR. If line 6 is less than zero, enter the negative

amount on the appropriate form. Fiduciaries should add this amount to any other credits from

Forms 500CR, 502H, and 502S and enter on line 34 of Form 504.

1

12-49 Revised 03/14

GENERAL INSTRUCTIONS

Purpose 500CR is used to claim the following business tax credits

against corporation, personal or duciary income tax, or employer

withholding tax (tax-exempt organizations only).

Tax Credit Part

Bio-Heating Oil Tax Credit** R

Biotechnology Investment Incentive Tax Credit** L

Businesses That Create New Jobs Tax Credit F

Cellulosic Ethanol Technology Research & Develop-

ment Tax Credit**

S

Clean Energy Incentive Tax Credit** N

Community Investment Tax Credit** E

Commuter Tax Credit* M

Electric Vehicle Recharging Equipment Tax Credit ** V

Employer-Provided Long-Term Care Insurance Tax

Credit

I

RESERVED FOR FUTURE USE B

Enterprise Zone Tax Credit A

Film Production Employment Tax Credit** U

Green Building Tax Credit** Q

Job Creation Tax Credit** D

Job Creation and Recovery Tax Credit** T

Long-Term Employment of Qualied Ex-Felons Tax

Credit*

G

Maryland Disability Employment Tax Credit* C

Maryland-Mined Coal Tax Credit** O

One Maryland Economic Development Tax Credit** P

Research and Development Tax Credits** K

RESERVED FOR FUTURE USE J

Work-Based Learning Program Credit** H

*Tax-exempt organizations For application of these credits

against employer withholding tax, complete and attach Form 500CR

to Form MW508 (Annual Employer Withholding Reconciliation

Return). See Administrative Release 34.

**Required Certication must be attached to Form

500CR.

Pass-through entities (PTEs) If the business is a PTE, Form

500CR must be completed through line 23, Part W and submitted

with the PTE income tax return (Form 510). The PTE must provide

each partner, shareholder, member or beneciary with a statement

showing their share of the credit.

Note: If you are a PTE claiming the One Maryland Economic

Development Tax Credit, refer to the instructions in Part P

before submitting Form 500CR. There are additional reporting

requirements.

Fiscal Year Return Any credit from a PTE ling a scal year

return is considered received by the member(s) on the last day

of the PTE’s scal year. The credit(s) should be claimed on the

member(s)’s tax return for the same year as the PTE’s scal year

end. Even though the K-1 listing the credit may reect the tax

year for the beginning of the scal year, the credit is still claimed

in the year in which the PTE’s scal year ends.

Credits received from PTEs Check the box on page 1 of Form

500CR to indicate that credits are from a PTE and enter the PTE’s

federal employer identication number (FEIN). Attach the K-1 and

statements from the PTEs showing your share of the credit and

any credits passing through and Form 500CR to the tax return

to be led.

If credits are received from more than one entity, prepare a

schedule that provides the entity name, FEIN, type of credit and

amount of the credit for each entity. Total the amounts for each

credit and enter on the appropriate lines of Form 500CR, Part W.

Complete Part W and Part X.

Note: If a PTE has issued you a Schedule K-1 or other statement

stating that you are entitled to claim a distributive or pro rata

portion of a One Maryland Economic Development Tax Credit,

refer to the instructions in Part P before submitting Form 500CR.

There are additional entries you must make on Form 500CR

to claim your share of the credit.

Credits claimed by both spouses on a joint return Complete

only one Form 500CR combining the amounts for both spouses.

Name and Other Information Enter the name as shown on

Form 500, 502, 504, 505, 510 or MW508 in the designated area.

Enter the taxpayer identication number (social security number

or FEIN). If a federal employer identication number (FEIN) is to

be used and has not been secured, enter “APPLIED FOR” followed

by the date of application. If you have not applied for a FEIN,

please do so immediately.

Tax Year or Period Enter the beginning and ending dates in the

space provided at the top of Form 500CR. The form used for ling

must reect the same tax year as the annual tax return.

When and Where to File Form 500CR must be attached to the

annual return (Form 500, 502, 504, 505, 510 or MW508) and led

with the Comptroller of Maryland, Revenue Administration Division,

110 Carroll Street, Annapolis, Maryland 21411-0001.

PART A - ENTERPRISE ZONE TAX CREDIT

General Requirements Businesses located in an enterprise zone

may be eligible for tax credits based upon wages paid to qualifying

employees. For businesses located in a focus area (an area within

an enterprise zone that is especially in need) the credit amounts

are higher.

Businesses that own, operate, develop, construct or rehabilitate

property intended for use primarily as single- or multi-family

residential property are not eligible for the enterprise zone tax

credit.

Qualifying employees are those employees who:

1. are new employees or employees rehired after being laid off

for more than one year;

2. were employed at least 35 hours per week by the business

for at least six months before or during the business entity’s

tax year for which a credit is claimed;

3. spent at least one-half of their working hours in the enterprise

zone on activities of the business resulting directly from its

location in the enterprise zone;

4. earn 150% or more of the federal minimum wage; and

5. were hired by the business after the later of the date on

which the enterprise zone was designated or the date on

which the business entity located in the enterprise zone.

In addition, an employee may not have been hired to replace an

individual employed by the business in that or the three previous

tax years except an economically disadvantaged employee hired

to replace a previously qualied economically disadvantaged

employee, for whom the business received the corresponding rst-

or second-year credit in the immediately preceding tax year.For

information on the location of enterprise zones and focus areas

and the standards which businesses must meet to qualify, contact:

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

2

12-49 Revised 03/14

Maryland Department of Business and Economic Development

Division of Business Development, Tax Incentives Group

World Trade Center

401 E. Pratt St.

Baltimore, MD 21202

410-767-4980

taxincentives@choosemaryland.org

Economically disadvantaged employees are those who are certied

as such by:

Maryland Department of Labor, Licensing and Regulation

Division of Employment and Training

1100 N. Eutaw Street

Baltimore, MD 21201

410-767-2047

That office will provide information relating to certification

requirements for such employees.

Specic Requirements

Complete Parts A-I and A-II if the business is located in an

enterprise zone but not in a focus area. Complete Parts A-III and

A-IV if the business is located in a focus area.

Part A-I Credit for economically disadvantaged employees

not located in a focus area A credit is allowed for each new

economically disadvantaged employee for a three-year period

beginning with the year the employee was qualied. The credits are

limited to the following amounts of wages paid to the economically

disadvantaged employee: $3,000 in the rst year, $2,000 in the

second year and $1,000 in the third year. If the employee replaced

a previously qualied economically disadvantaged employee, the

credit for the new employee will be the same as would have been

allowed for the replaced employee.

Part A - II Credit for other qualied employees not located in

a focus area A credit is allowed for each new qualied employee

not provided in Part A-I. The credit is limited to $1,000 of wages

paid and is applicable for only the rst year the employee was

qualied.

Part A - III Credit for economically disadvantaged

employees located in a focus area A credit is allowed for

each new economically disadvantaged employee for a three-year

period beginning with the rst year the employee was qualied.

The credits are limited to the following amounts of wages paid

to the same economically disadvantaged employee: $4,500 in

the rst year, $3,000 in the second year and $1,500 in the third

year. If the employee replaced a previously qualied economically

disadvantaged employee, the credit for the new employee will be

the same as would have been allowed for the replaced employee.

Part A - IV Credit for other qualied employees located in a

focus area A credit is allowed for each new qualied employee not

provided in Part A-III. The credit is limited to $1,500 of wages paid

and is applicable for only the rst year the employee was qualied.

Part A - Summary Add lines 5,7,12 and 14 and enter total.

Whenever an Enterprise Zone Tax Credit is claimed, an addition

modication must be made in the amount of the credit claimed.

PART B - RESERVED FOR FUTURE USE

PART C - MARYLAND DISABILITY EMPLOYMENT TAX

CREDIT

General Requirements Businesses that employ persons with

disabilities, as determined by the Division of Rehabilitation Services

(DORS) in the Maryland State Department of Education and/or by the

Maryland Department of Labor, Licensing and Regulation (DLLR)

may be eligible for tax credits for wages paid to, and for child

care expenses and transportation expenses paid on behalf of,

qualied employees.

Qualifying employees with a disability are those who are certied

as such by the DORS (or by the DLLR for a disabled veteran).

For certication or for additional information, contact:

Division of Rehabilitation Services

2301 Argonne Drive

Baltimore, MD 21218

1-888-554-0334

dors@msde.state.md.us

or the Department of Labor, Licensing and Regulation at

410-767-2047

taxcredit@dllr.state.md.us

A “Qualied Employee” with a disa bility means an individual who:

1. meets the denition of an individual with a disability as

dened by the Americans with Disability Act;

2. has a disability that presently constitutes an impediment

to obtaining or maintaining employment or to transitioning

from school to work; and

3. is ready for employment; or

4. is a veteran who has been discharged or released from

active duty by the American Armed Forces for a service-

connected disability.

This credit may not be claimed if the Employment Opportunity

Tax Credit has been claimed for that employee. In addition, an

employee must not have been hired to replace a laid-off employee

or to replace an employee who is on strike or for whom the

business simultaneously receives federal or state employment

training benets.

Qualifying child care expenses are those expenses incurred by

a business to enable a qualied employee with a disability to be

gainfully employed.

Transportation expenses are those expenses incurred by a

business entity to enable a qualied employee with a disability

to travel to and from work.

Specic Requirements

Part C-I Credit for employees with a disability hired A credit

is allowed for each new employee with a disability for a two-year

period beginning with the year the employee was qualied. The

credit for each disabled employee hired is equal to 30% of the rst

$6,000 of qualied rst year wages and 20% of the rst $6,000

of qualied second year wages.

The employer is not entitled to claim the credit until employment

has continued for at least one full year unless the employee: (a)

voluntarily leaves the employer, (b) becomes further disabled or

death occurs or (c) is terminated for cause. The credit must be

prorated for the portion of the year the employee worked unless

the employee voluntarily left to take another job.

Part C-II Credit for Child Care and Transportation Expenses

An additional credit is allowed for expenses incurred by the

employer for approved day care services for a child or children

of a qualied employee, or for transportation expenses that are

incurred to enable a qualied employee to travel to and from work.

A credit of up to $600 is allowed for the rst year of employment

and up to $500 for the second year. To verify if a child care center

qualies as an approved provider, contact the Department of

Human Resources, Child Care Administrator for the county or city

in which the child care center is located.

Part C-Summary Add lines 4 and 8.

Whenever this credit is claimed against the income tax, an addition

modication must be made in the amount of the credit claimed.

A credit will be allowed only for employees hired before July 1,

2013.

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

3

12-49 Revised 03/14

No credits may be earned for any tax year beginning on or

after January 1, 2016.

PART D - JOB CREATION TAX CREDIT

General Requirements Certain businesses that create new

qualied positions in Maryland may be eligible for tax credits

based on the number of qualied positions created or wages paid

for these positions.

The business facility must be certied as having created at least

60 qualied positions, 30 high-paying qualied positions, or 25

qualied positions if the business facility established or expanded

is in a State Priority Funding Area.

A qualied position is a full-time position which pays at least

150% of the federal minimum wage, is located in Maryland, is

newly created as a result of the establishment or expansion of

a business facility in a single location in the state and is lled.

Qualied business entities are those that are certied as such by

the Maryland Department of Business and Economic De velopment.

A qualied employee is an employee lling a qualied position.

Recapture Provision If, at any time during the three tax years

after the year the credit was earned, the average number of

qualied positions falls more than 5% below the average number

of qualied positions during the year in which the credit was

earned, a portion of the credit will be recaptured for the tax year

in which this occurs. The amount to be recaptured is the amount

originally claimed multiplied by the percentage reduction in the

number of qualied employees. The credit to be recaptured is

reported on line 26, Part W of Form 500CR.

For certication or for information on the standards that businesses

must meet to qualify, contact:

Maryland Department of Business and Economic Development

Division of Business Development, Tax Incentive Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

taxincentives@choosemaryland.org

Specic Requirements

Part D-I Credit for employees of a qualied business A credit

is allowed for each newly created qualied lled position. The

credit is the lesser of $1,000 multiplied by the number of lled

qualied positions during the credit year or 2.5% of the wages

paid for these positions for the credit year.

Part D-II Credit for employees working in a facility located

in a revitalization area A credit is allowed for each newly-created

qualied lled position located in a revitalization area. The credit

is the lesser of $1,500 multiplied by the number of lled qualied

positions or 5% of the wages paid for these positions.

Part D - Summary Add lines 4 and 8 and enter total on line 9.

The total credit will be taken over a two-year period. One-half of

the credit will be allowed each year. The amount allowed for any

credit year cannot exceed $1,000,000.

No credits may be earned for any tax year beginning on or

after January 1, 2020.

NOTE: A copy of the certication from the Department of Business

and Economic Development must be included with Form 500CR.

PART E - COMMUNITY INVESTMENT TAX CREDIT

Businesses or individuals who contribute to approved Community

Investment Programs may be eligible for a credit against the

state income tax. Contributions must be made to a nonprot

organization approved by the Department of Housing and

Community Development. The taxpayer must apply to and

receive approval by the Department of Housing and Community

Development for each contribution for which a credit is claimed.

The credit is limited to 50% of the approved contributions

(including real property) not to exceed $250,000.

For further information contact:

Department of Housing and Community Development

100 Community Place

Crownsville, MD 21032-2023

410-514-7241

Note: A copy of the required approval from the Department of

Housing and Community Development must be included with

Form 500CR.

PART F - BUSINESSES THAT CREATE NEW JOBS TAX

CREDIT

To qualify, businesses must be located in Maryland and create new

positions or establish or expand business facilities in the state.

If a property tax credit (or an enhanced property tax credit) as

dened in Section 9-230 of the Tax-Property Article is granted

by the Mayor and City Council of Baltimore City or the governing

body of a county or municipal corporation, certain businesses may

be entitled to an income tax credit.

These credits are based on percentages of the property tax liability

as certied by the State Department of Assessments and Taxation.

Enter the certied amount on lines 1 or 2 as applicable.

Recapture Provision If, at any time during the three tax

years after the year the credit was earned, the business fails to

satisfy the thresholds to qualify for the credit, the credit must be

recaptured. The income tax credit to be recaptured is reported

on line 26, Part W of Form 500CR and led with the tax return for

the tax year in which the business failed to satisfy the applicable

thresholds.

For further information contact:

State Department of Assessments and Taxation

301 W. Preston Street

Baltimore, MD 21201-2395

410-767-1191

taxcredits@dat.state.md.us

PART G - LONG-TERM EMPLOYMENT OF QUALIFIED EX-

FELONS TAX CREDIT (for employees hired from 1/1/07

through 12/31/2011)

A credit is allowed to businesses that hire qualied ex-felons under

a program approved by Maryland Department of Labor, Licensing

and Regulation. This credit may not be claimed if the Employment

Opportunity Tax Credit or Maryland Disability Employment Tax

Credit has been claimed for that employee.

A qualied employee is a “qualied ex-felon” in accordance with

Section 51(d)(4) of the Internal Revenue Code. A business may

not claim a credit for an employee who is hired to replace a laid-

off employee or an employee who is on strike, or for which the

business simultaneously receives federal or state employment

training benets.

A credit is allowed for each qualied ex-felon for a two-year

period beginning with the rst year the employee was qualied.

The credit for each qualied employee hired is equal to 30% of

the rst $6,000 of qualied rst year wages and 20% of the rst

$6,000 of qualied second year wages.

The employer can not claim the credit until employment has

continued for at least one full year unless the employee: (a)

voluntarily leaves the employer; (b) becomes disabled or death

occurs or; (c) is terminated for cause. The credit must be prorated

for the portion of the year the employee worked unless the

employee voluntarily left to take another job.

Whenever a Long-term Employment of Qualied Ex-Felons Tax

Credit is claimed against the income tax, an addition modication

must be made in the amount of the credit claimed.

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

4

12-49 Revised 03/14

For further information, contact:

Maryland Department of Labor, Licensing and Regulation

Division of Employment and Training

1100 N. Eutaw Street

Baltimore, MD 21201

410-767-2047

PART H - WORK-BASED LEARNING PROGRAM CREDIT

A credit is allowed for wages paid to each student employee under

an approved paid work-based learning program. The credit is 15%

of the wages paid to each student not to exceed a cumulative

amount of $1,500 per student for the duration of the program.

For further information on qualied students and the requirements,

employers must meet to qualify, contact:

Maryland State Department of Education

Division of Career Technology and Adult Learning

200 W. Baltimore St.

Baltimore, MD 21201

410-767-0182

wbltaxcredit@msd.state.md.us

This credit is allowed for wages paid after 12/31/2008.

NOTE: A copy of the certication from the Maryland State

Department of Education must be included with Form 500CR.

PART I - EMPLOYER-PROVIDED LONG-TERM CARE

INSURANCE TAX CREDIT

A credit is allowed for premiums paid by employers to provide long-

term care insurance to their employees as part of their benets

package. The employer may claim a credit of 5% of the premiums

paid during the tax year or $100 for each Maryland employee

covered by long-term care insurance provided, whichever is less,

but cannot be more than $5,000.

PART J - RESERVED FOR FUTURE USE

PART K - RESEARCH AND DEVELOPMENT TAX CREDITS

Businesses that incur qualified research and development

expenses in Maryland may be entitled to tax credits. The total

of research and development credits for all businesses may not

exceed $8,000,000 per year.

Part K-I – Research and Development Tax Credits for

Businesses Not Certied as a “Small Business”

There are two credits. The Basic Credit is 3% of the qualied

Maryland research and development expenses paid during the

tax year, up to a base amount. The Growth Credit is 10% of the

Maryland research and development expenses paid during the tax

year that exceed the base amount.

Certication must be obtained from the Maryland Department of

Business and Economic Development (DBED) before the credit

can be claimed. The credit must be taken for the tax year in which

the expenses were incurred. Therefore, an electronic amended

return may need to be led. A copy of the certication from DBED

must be included with the return.

Whenever this credit is claimed against the income tax, an addition

modication must be made for the tax year in which the research

and development expenses were paid.

Claiming the Tax Credit

The business will enter the DBED-certied Basic Credit (3%) on

line 1, Part K-I.

On line 2, Part K-I, the business will enter the amount of the

DBED-certied Growth Credit (10%).

Line 3, Part K-I, will reect the sum of line 1 and line 2. This

amount is carried to line 11, Part W. Also, this amount is an

addition modication on the tax return.

Part K-II – Research and Development Tax Credits for

Businesses Certied as a “Small Business”

If a business is certied to claim the Research and Development

Tax Credit as a “small business,” the credit is calculated in basically

the same manner, but Part K-II is used.

A “Small Business” is dened as a for-prot corporation, limited

liability company, partnership or sole-proprietorship with net

book value assets totaling at the beginning or the end of the tax

year for which the Maryland qualied research and development

expenses are incurred, as reported on the balance sheet, less

than $5,000,000.

Claiming the Tax Credit

The business will enter the DBED-certied Basic Credit (3%) on

line 4, Part K-II.

On line 5, Part K-II, the business will enter the amount of the

DBED-certied Growth Credit (10%).

Line 6, Part K-II, will reect the sum of line 4 and line 5. This

amount is carried to line ++, Part Y. Also, this amount is an addition

modication on the tax return.

For certication and further information contact:

Maryland Department of Business and Economic Development

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

taxincentives@choosemaryland.org

PART L - BIOTECHNOLOGY INVESTMENT INCENTIVE TAX

CREDIT

General Requirements A credit is available for an investment in a

qualied Maryland biotechnology company. To qualify, a company

can be any entity of any form (except a sole proprietorship)

that is duly organized and existing under the laws of any

jurisdiction for the purpose of conducting business for prot,

and must be primarily engaged in the research, development,

or commercialization of innovative and proprietary technology

that comprises, interacts with, or analyzes biological material

including biomolecules (DNA, RNA, or protein), cells, tissues or

organs. The biotechnology company must have its headquarters

and base of operations in Maryland; have fewer than 50 full-time

employees; have been in active business no longer than 10 years

(or 12 years if the Maryland Department of Business and Economic

Development (DBED) determines that the company requires

additional time to complete the process of regulatory approval);

have been certied as a biotechnology company by DBED; and

must not have any securities publicly traded on any exchange.

For scal year 2012 and 2013 only, the biotechnology company

may be in active business for up to 15 years.

The investor can be an individual or any entity (except a retirement

plan), and must make an investment of at least $25,000 in a

qualied Maryland biotechnology company (but not own more

than 25% of the equity interests in the company after making the

investment); must be required to le an income tax return in any

jurisdiction; and must apply for and receive nal certication from

DBED in order to claim the Biotechnology Investment Incentive

Tax Credit. The amount of the credit is 50% of the investment

in the qualied Maryland biotechnology company, not to exceed

$250,000. The investment must be the contribution of money

in cash or cash equivalents expressed in United States dollars,

at risk of loss, to a qualied Maryland biotechnology company

in exchange for stock, a partnership or membership interest, or

other ownership interest in the equity of the company title to which

ownership shall vest in the qualied investor. The investment

cannot include debt. See §10-725 of the Tax-General Article and

Code of Maryland Regulations 24.05.03.

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

5

12-49 Revised 03/14

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Business and Economic Development

Division of Business Development, Tax Incentive Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

taxincentives@choosemaryland.org

Specic Requirements: The investor may claim the tax credit for

the amount provided in the nal certicate. If the credit amount

exceeds the tax due, then a refund for the excess amount may be

claimed. The credit cannot be claimed until the date of issuance of

the nal certicate. It must be claimed on the Maryland income tax

return for the tax year in which the investor makes the investment

in the qualied Maryland biotechnology company.

Both the nal certicate received from DBED and a statement of

afdavit (see below) as prepared by the investor are required to be

attached to the 500CR in order for the Biotechnology Investment

Incentive Tax Credit to be allowed. Complete Form 500CR using

the information provided in the nal certicate and enter the

amount calculated from line 6 to line 2 of Part Y.

NOTE: If you are claiming a credit for more than one investment,

a separate Form 500CR must be completed for each investment.

Total the amount from each Form 500CR, Part L, line 6. Using

only one summary section, record the total on Form 500CR, Part

Y, line 2. To claim the credit, you must attach each separate Form

500CR to your income tax return.

Required Statement and Recapture of Credit The statement

of afdavit must include the taxpayer identication number and

name of the investor; signature of the investor under penalties of

perjury (or its authorized representative); and date. The statement

of afdavit must stipulate that if, within 2 years after the close of

the tax year for which the credit is claimed, (1) the investor sells,

transfers or disposes of the ownership interest in the qualied

Maryland biotechnology company, for which this tax credit was

certied, or (2) the qualied Maryland biotechnology company

ceases operating as an active business with its headquarters and

base of operations in Maryland, the investor shall give notice to

the Comptroller by reporting the applicable recapture amount on

the investor’s Maryland tax return for the tax year in which the

event causing the recapture occurred.

The applicable recapture amount is calculated by multiplying

the total amount of the credit claimed (or in the case of a sale,

transfer or other disposition of the ownership interest, the portion

of the credit attributable to the ownership interest disposed of),

by one of the following percentages: 100%, if the event requiring

recapture of the credit occurs during the taxable year for which

the tax credit is claimed; 67%, if the event requiring recapture

of the credit occurs during the rst year after the close of the

taxable year for which the tax credit is claimed; or 33%, if the

event requiring recapture of the credit occurs more than 1 year

but not more than 2 years after the close of the taxable year

for which the tax credit is claimed. The amount of recapture is

entered onto line 5, part L.

In addition, an investor’s credit may be subject to a recapture if

the certicate is rescinded by DBED due to the investor failing

to provide the required notice to DBED of having made the

investment, or if DBED revokes the nal certicate due to false

representations made in connection with application for the

certication. See Code of Maryland Regulations 24.05.03 for

rescission and revocation procedures.

Pass-through entities If the credit is earned by an investor

that is a PTE, the members of the PTE may claim the pro rata or

distributive shares of the credit amount subject to the $250,000

limitation. A PTE that earned the Biotechnology Investment

Incentive Tax Credit must le the Maryland Form 510, Form 500CR

and all other required attachments in order for the members

to be permitted to claim the credit. See Form 510 instructions.

In order for a member of the PTE to be allowed the credit, the

member must attach to the led Maryland return the following: a

completed Form 500CR; copies of the nal certication from DBED

and statement of afdavit; and Schedule K-1 or other statement

showing the allocated share of credit amount.

PART M - COMMUTER TAX CREDIT

A credit is allowed for businesses that conduct or operate a trade

or business in Maryland and provide commuter benets for their

employees.

The business must pay a portion of the cost of travel between the

employee’s home and the workplace. Qualied commuter benets

include the cost of transit instruments (tickets, passes, vouchers,

fare cards, smartcards and tokens) used to transport an employee

of the business to or from home and the workplace. The portion of

the cost an employer pays to provide a “Guaranteed Ride Home”

program or for a parking “Cash-Out” program for their employees

also are qualied commuter benets.

Travel must be on a qualied mass transit vehicle or system, or

in a vanpool. The vanpool vehicle must seat at least 8 adults and

be used primarily to transport employees between home and the

workplace.

The credit is the lesser of 50% of the cost of providing commuter

benets or $50 per month for each employee.

For more information contact:

Mass Transit Administration, Marketing Division

6 St. Paul Street, 3rd Floor

Baltimore, MD 21202-1614

410-767-8755

www.commuterchoicemaryland.com

PART N - CLEAN ENERGY INCENTIVE TAX CREDIT

This credit is allowed if a Maryland facility is originally placed

in service, or that initially began co-ring, during the period of

1/1/2006 through 12/31/2015 and produces electricity during the

tax year primarily using qualied energy resources derived from:

• Wind

• Open and Closed Loop Biomass

• Geothermal

• Solar

• Small Irrigation

• Municipal Solid Waste

• Qualied Hydropower

The credit is 0.85 cents for each kilowatt hour of electricity

produced at a Maryland facility using qualied energy resources

during the ve-year period specied in the initial credit certicate.

If the facility produces electricity from qualied energy resources

co-red with coal, the credit is 0.5 cents for each kilowatt hour of

electricity produced during the ve-year period, specied in the

initial credit certicate.

You must obtain an initial credit certicate from Maryland Energy

Administration before claiming this Clean Energy Incentive Tax

Credit.

The credit claimed each year can not exceed one-fth of the

maximum amount stated in the initial credit certicate. If the

credit amount exceeds the tax due, then a refund for the excess

amount may be claimed.

For information concerning qualications for the credit, contact the

Maryland Energy Administration

60 West St., Suite 300

Annapolis, MD 21401

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

6

12-49 Revised 03/14

410-260-7655

Note: A copy of the certification by the Maryland Energy

Administration must be included with Form 500CR.

PART O - MARYLAND-MINED COAL TAX CREDIT

A credit is allowed for a qualied cogenerator, small power producer

or an electricity supplier (as dened under §1-101 of the Public

Utilities Article) for the purchase of Maryland-mined coal. An

electricity supplier may not have been a public utility before July 1,

1999. A cogenerator or an electricity supplier must not be subject

to the public service company franchise tax.

The credit is $3 for each ton of Maryland-mined coal purchased

in the current tax year.

The amount of this credit must be certied by the State Department

of Assessments and Taxation.

For further information contact:

State Department of Assessments and Taxation

301 W. Preston Street

Baltimore, MD 21201-2395

410-767-1940

taxcredits@dat.state.md.us

Note: A copy of the certication by the State Department of

Assessments and Taxation must be included with Form 500CR.

PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX

CREDIT

General requirements Credits may be claimed for eligible project

costs and for eligible start-up costs incurred to establish, relocate or

expand a business facility in a distressed Maryland county. In order

to qualify for the credit for project costs, a minimum of $500,000

must be spent on eligible project costs. At least 25 newly hired

qualied employees must be employed for at least one year

at the new or expanded facility. This credit may also be claimed

by tax-exempt nonprot organizations.

If claiming a credit for multiple projects, complete a separate Part

P for each project.

For information on distressed counties, qualied employees, eligible

costs, and other requirements businesses must satisfy to qualify

for credit, contact:

Maryland Department of Business and Economic Development

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

taxincentives@choosemaryland.org

Pass-through entities (PTEs), ling Maryland Form 510, with eligible

project costs and eligible start-up costs must follow the additional

instructions following Part P – IV Summary.

NOTE. For tax years beginning before January 1, 2011, a qualied

business entity may carry over excess tax credit to a succeeding

tax year if during the succeeding tax year, the qualied business

entity continues to employ at least 25 qualied employees at the

project. For taxable years beginning after December 31, 2010,

a qualied business entity, which has been certied for the tax

credit, may claim a prorated share of this credit, if: (1) the number

of qualied positions falls below 25, but does not fall below 10,

and (2) the qualied business entity has maintained at least 25

qualied positions for at least ve years.

PART P - I CALCULATION OF TAXABLE INCOME,

WITHHOLDING, QUALIFIED EMPLOYEES AND TAX LIABILITY

NOTE: Part P-I has two columns. Column 1 is used by all qualied

business entities, except PTE members. Column 2 is used by PTE

members only and should reect a member’s allocable or pro-rata

share of the reported items, except lines 4a through 4d (see the

instructions below for Part P-I, Section A). PTEs complete only

Sections A and C of Part P-I. Read the Special Instructions

For Qualied Entities That Are Pass-Through Entities.

PTE members must read the Special Instructions For

Members Of Qualied Business Entities That Are Pass-

Through Entities BEFORE completing PART P-I.

Section A This section is used to separate the qualied business

entity’s Maryland taxable income from the project (the “project

taxable income”) from the Maryland taxable income not associated

with the project (the “non-project taxable income”). Project

taxable income is the income generated by or arising out of the

eligible economic development project.

To calculate the project taxable income, proceed as follows: (1)

If the project is a totally separate facility, then project income is

gured by using separate accounting, reecting only the gross

income, deductions, expenses, gains, and losses that are directly

attributable to the facility and overhead expenses apportioned to

the facility. (2) If the project is an expansion to a previously existing

facility, then gure net income attributable to the entire facility

by using separate accounting reecting only the gross income,

deductions, expenses, gains, and losses directly attributable to the

facility and overhead expenses apportioned to the facility and net

income attributable to the project. Next, gure the project income

by apportioning the entire facility income to the project. Or, (3) if

separate accounting method is shown to be not practicable, use

an alternate method approved by the Comptroller of Maryland or

the Maryland Department of Business and Economic Development.

Enter on line 4a the number of qualied employees (this number is

not allocated or pro-rated; a PTE would report this same number

on Form 510 Schedule K-1s to all PTE members). A qualied

employee is an employee lling a qualied position. Generally, this

is a position that is full-time and of indenite duration, is paid at

least 150% of the federal minimum wage, is located in a qualied

distressed Maryland county, and is newly created as a result of

the establishment of a business facility.

If line 4a is less than 10, do not continue further. You are not

eligible to claim the tax credit for this year.

Enter a “Y” or an “N” to the question on line 4b of whether or not

the qualied business entity had maintained at least 25 qualied

positions for at least ve years. If the answer is “N” AND the

number on line 4a is less than 25, a credit may not be claimed

for this year.

Enter on line 4c the tax year the project was put into service.

Calculate the prorate factor on line 4d. If line 4a is greater than

or equal to 25, this should be equal to 1.000000.

A PTE will report the same numbers and information that appears

on lines 4a through 4d of its Form 500CR on its members Form

510, Schedule K-1. Do not report the distributive share of this

information on the K-1.

Enter on line 5 the amount of Maryland income tax the qualied

business entity was required to withhold during this tax year

from the wages of qualied employees under § 10-908 of the

Tax-General Article.

Section B This section is used to calculate the qualied business

entity’s total state tax liability, and to separate the state tax liability

on project taxable income (the amount computed on Section A,

line 2) and the state tax liability on non-project taxable income

(the amount on Section A, line 3).

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

7

12-49 Revised 03/14

This section also reects the application of the prorate factor to

the tax liabilities computed on line 7a and 8a, when a qualied

business entity has between 10 and 24 employees, but has had

at least 25 qualied employees for at least ve years since they

have been eligible for this tax credit.

PTEs do not complete Section B but continue on Section C of Part

P-I.

Section C Enter on line 9 the total eligible project costs for the

eligible economic development project. Eligible project costs are

the costs and expenses that a qualied business entity incurs

to acquire, construct, rehabilitate, install, or equip the eligible

economic development project. The total eligible project costs must

be at least $500,000, but not to exceed $5,000,000.

Enter on line 11 the total eligible start-up costs to establish or

expand a business facility in a qualied distressed county. The total

amount of eligible start-up costs cannot exceed $500,000. Eligible

start-up costs are costs to furnish and equip a new or expanding

location for ordinary business functions and those expenses for

moving costs, separation costs, and any other expenses directly

related to a move from an existing non-Maryland location to a

location in a qualied distressed Maryland county.

Enter on line 13 the number of qualied employees employed at

the new or expanded business facility (from PART P-I, line 4a)

multiplied by $10,000.

PTEs stop here. PTEs do not complete the remainder of Part P.

PART P - II CREDITS AGAINST TAX LIABILITY AND TAX ON

INCOME FROM THE PROJECT

Beginning with Part P-II, the computation returns to one column

and is used by all taxpayers eligible to claim this credit except

for PTEs.

Part P-II is used to calculate the credits that can be claimed for

the project credit and the start-up credit during nonrefundable tax

years for the One Maryland Economic Development Tax Credit.

The nonrefundable tax years consist of the initial tax year and any

carryover years. During this period, these credits are limited up to

a certain amount of the entity’s state tax liability.

A carryover credit may be claimed for the project tax credit against

the state income tax on the project taxable income until the earlier

of the full amount of excess eligible project costs is used, or until

the 14th tax year following the tax year in which the eligible

economic project is placed in service. A carryover credit may be

claimed for the start-up tax credit against state income tax until

the earlier of the full amount of the excess eligible startup costs,

or until the 14th tax year following the tax year in which the entity

locates in a qualied distressed county.

Part P-II is also used to calculate a certain nonrefundable portion

of the project credit and the nonrefundable start-up credit that

may be claimed during the tax years when these credits also may

have refundable portions.

Section A - Project Costs Tax Credit

On line 14 enter the sum of the amount of the project credits

allowed for the eligible project costs in the initial tax year (the

rst tax year in which this credit was claimed), prior carryover tax

years, and any refundable tax year amounts.

The amount on line 15 is the amount of remaining excess eligible

project costs that are available to be claimed by the qualied

business entity as a project credit for this tax year. The project

credit that may be claimed in Part P-II is limited up to the amount

of your Maryland tax liability on the project taxable income.

Enter on line 16 the amount of the Maryland liability attributable

to income from the project (line 7b). Line 17, the lesser of line 15

or line 16, is the “Credit against tax on income from the project.”

Section B - Start-up Costs Tax Credit

On line 18 enter the sum of the amount of the start-up credits

allowed in the initial tax year, prior carryover tax years, and

any refunds (these are the amounts claimed as refunds for the

start-up credit during the tax years when this credit becomes a

refundable credit). The amount calculated on line 19 is the excess

amount available to be claimed by the qualied business entity

as a start-up credit.

The start-up credit is equal to the lesser of the amount on line

19 or line 13 (qualied employees multiplied by $10,000). The

start-up credit that may be claimed in Part P-II is limited to the

qualied business entity’s Maryland tax liability. If a project credit

was claimed in Part P-II, then the amount of the start-up credit

on line 22 is limited to the remaining Maryland state tax liability

after taking the nonrefundable project credit (line 21).

PART P - III REFUNDABLE ONE MARYLAND ECONOMIC

DEVELOPMENT TAX CREDIT

Generally, at any time after the 4th tax year following the tax year

after the project was placed in service, the business may apply

the excess to the entity’s total Maryland state income tax liability

and may request a refund of any excess credit.

The refundable years include any tax year after the 4th tax year

following the tax year in which the project is placed in service, for

the project credit, or in which the business locates to a qualied

distressed Maryland county for the start-up credit but must be

before the 15th tax year following the tax year in which for the

project credit the project is placed in service or in which for the

start-up credit the business locates to a qualied distressed county.

If the majority of the qualied positions are paid at least 250% of

the federal minimum wage, then the refundable years will begin

after the 2nd tax year rather than the 4th tax year.

Section A - Project Costs The refundable portion of the project

credit for the tax year is calculated after the nonrefundable portions

of the credit are claimed. The refundable portion is calculated by

subtracting the amount allowed as the nonrefundable portion of

this credit (PART P-II, line 17) claimed for this tax year from the

remaining available project credit amount (PART P-II, line 15).

This amount is the remaining excess eligible project costs for the

eligible economic development project.

This project credit amount is applied against the remaining,

available state tax liability. This section is used to calculate the

portion of the nonrefundable tax credit that is allowed against the

State tax on non-project taxable income during the refundable

tax years of the One Maryland Economic Development Tax Credit.

The tentative refund is the amount, if any, by which any unused

excess project credit amount exceeds the state tax liability. The

refundable portion is limited to the amount of Maryland income

tax withheld during this tax year from the wages of qualied

employees (line 5).

Section B - Start-up Costs The refundable portion of the startup

credit is calculated after the nonrefundable portion of this credit

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

8

12-49 Revised 03/14

is claimed. The tentative refund is the amount of the remaining

excess start-up credit. The refundable portion of the start-up credit

is limited to the amount of Maryland income tax withheld during

this tax year from the wages of qualied employees (line 5).

PART P - IV SUMMARY

Complete the summary of credit amounts claimed for the project

credits and start-up credit for the One Maryland Economic

Development Tax Credit.

Enter on line 35 the nonrefundable portions of the project and

start-up costs credits from lines 33 and 34. This is the total

nonrefundable One Maryland Economic Development Tax Credit.

This amount should also be entered on line 16 of Part W.

Add lines 36 and 37 and enter this amount on line 38. This is the

total refundable One Maryland Economic Development Tax Credit.

This amount should also be entered on line 1 of Part Y.

NOTE: A copy of the nal credit certication from the Department

of Business and Economic Development must be included with

Form 500CR.

SPECIAL INSTRUCTIONS FOR QUALIFIED BUSINESS

ENTITIES THAT ARE PASS-THROUGH ENTITIES (PTEs)

A qualied business entity that is a PTE (partnership, LLC, S

corporation, or business trust) must attach Form 500CR to the

PTE income tax return, Form 510.

PTEs must provide the following information on Form 500CR if

they are eligible for the One Maryland Economic Development Tax

Credit: (1) Maryland taxable income; (2) Maryland taxable income

from the project; (3) non-project taxable income; (4) number of

qualied employees; (5) if the number of employees is less than 25

employees, a PTE must state whether of not the qualied business

entity had 25 lled qualied positions for at least ve years from

the time they have been eligible or the credit; (6) the Tax Year

the project was out into service; (7) amount of Maryland income

tax required to be withheld from these qualied employees; (8)

total eligible project costs; (9) $5,000,000 maximum; (10) total

eligible start-up costs; (11) $500,000 maximum. Therefore, a PTE

must complete Sections A and C of Part P-I.

The allocable or pro-rata portion of these items must be furnished

to each member of the PTE on the member’s respective Schedule

K-1. The PTE must also indicate on the Schedule K-1 whether or

not the PTE is a qualied business entity which would be entitled to

pass on a refundable credit or whether the credit is nonrefundable

only. The PTE must provide a copy of the nal certication to each

member.

SPECIAL INSTRUCTIONS FOR MEMBERS OF QUALIFIED

BUSINESS ENTITIES THAT ARE PASS-THROUGH ENTITIES

Based on the PTE Schedule K-1, a member may then le the

applicable Maryland income tax return, attaching Form 500CR, to

claim the One Maryland Economic Development Tax Credit. The

member should complete PART P of Form 500CR in its entirety to

compute the credit amounts and claim any of the credits allowed

for the tax year. For the sections in Part P-I, the member would

complete Column 2 only.

The PTE member (the member of the qualied business entity)

must limit the amounts claimed for the project credit and startup

credit to the allocable or pro-rata portion of the PTE’s taxable

income as reported on Schedule K-1.

The PTE member computes the tax on the member’s share of

the PTE’s Maryland taxable income (line 1) using the highest rate

actually used on the member’s return and enter the result on line

6. The PTE member will then enter on line 7 that portion of line

6 which is attributable to the member’s share of project taxable

income. The tax on non-project income on line 8a is calculated

by taking the tax calculated on line 7a, prorating it further on line

7b, and then subtracting line 7a from line 6; if the amount on line

8a is less than zero, enter zero. Line 8a is also further prorated

by the factor on line 4b, to arrive at line 8b.

All amounts entered in Section C of Part P-I, should reect the

PTE member’s share of items as reported on the Schedule K-1.

For Parts P-II, P-III, and P-IV, the PTE member should follow the

preceding instructions for the respective parts.

NOTE: The member must attach a copy of the PTE’s nal credit

certication to claim the credit.

PART Q - GREEN BUILDING TAX CREDIT

A credit is available for the construction or rehabilitation of a

building that conforms to specic standards intended to save

energy and to mitigate environmental impact. The total amount

of the credits certied for all taxpayers each year (calendar years

2003 through 2011) is limited. Credits are allowed for amounts

spent on or after July 1, 2001.

The newly constructed or rehabilitated building must be located

in a priority funding area or qualied “brownelds” site. If a

rehabilitated building is not located in these areas, the building’s

square footage may not increase by more than 25%.

A copy of the initial credit certicate and a copy of an eligibility

certicate issued by an architect or engineer must be included with

the Form 500CR. The nal certicate that will certify the maximum

amount of credit available and the tax year it may be taken will

provide satisfactory evidence that the taxpayer is entitled to the

credit and must also be submitted.

For additional information, contact:

Maryland Energy Administration

60 West St., Suite 300

Annapolis MD 21401

410-260-7655

meainfo@energy.state.md.us

PART R - BIO-HEATING OIL TAX CREDIT

An individual or corporation may claim a credit against the State

income tax in an amount equal to 3¢ per gallon of bio-heating oil

purchased for space or water heating. The credit may not exceed

$500. Any unused credit amount for the taxable year may not be

carried forward to any other taxable year.

To claim the credit, an individual or corporation shall apply with

the Maryland Energy Administration (MEA) for an initial credit

certicate for the number of gallons of bio-heating oil purchased

for space or water heating.

No credit may be earned for any tax year beginning on or after

January 1, 2013.

For additional information, contact:

Maryland Energy Administration

60 West St., Suite 300

Annapolis, MD 21401

410-260-7655

meainfo@energy.state.md.us

Note: A copy of the certication by the Maryland Energy

Administration must be included with Form 500CR.

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

9

12-49 Revised 03/14

PART S - CELLULOSIC ETHANOL TECHNOLOGY RESEARCH

AND DEVELOPMENT TAX CREDIT

An individual or corporation may claim a credit against the State

income tax in an amount equal to 10% of the qualied research

and development (R&D) expenses paid or incurred by the individual

or corporation during the taxable year. By September 15 of the

calendar year following the end of the taxable year in which the

expenses were paid or incurred, an individual or corporation shall

submit an application to the Department of Business and Economic

Development (DBED) for the credit allowed; by December 15

of the same calendar year, DBED shall certify to the individual

or corporation the amount of the tax credit approved. The total

amount of credits approved by DBED for any calendar year may

not exceed $250,000.

To claim the approved credit, an individual or corporation shall

le an amended income tax return for the taxable year in which

the qualied R&D expenses were paid or incurred. The individual

or corporation must attach a copy of the DBED certication of the

approved credit amount to the amended income tax return. Any

credit in excess of the State income tax may be carried forward

to succeeding taxable years until the earlier of the full amount of

the excess is used, or the expiration of the 15th taxable year after

the taxable year in which the qualied R&D expenses were paid

or incurred.

Whenever this credit is claimed against the income tax, an addition

modication must be made in the amount of the credit claimed.

No credits may be earned for any tax year beginning on or after

January 1, 2017.

For more information, contact:

Maryland Department of Business and Economic Development

401 E. Pratt St.

Baltimore, MD 21202

410-767-4980

taxincentives@choosemaryland.org

PART T - JOB CREATION AND RECOVERY TAX CREDIT

General Requirements: The Job Creation & Recovery Tax Credit

has expired. This credit was available to employers who hired

qualied employees on or after March 25, 2010 but before January

1, 2011. The credit was available for those employees hired and

for the rst 12 months of employment. See 2011 instructions for

more information.

This credit may still be available on the 2012 Form 500CR for

members of pass-through entities(PTE) with a scal year beginning

in 2011 and ending in 2012, if there was an amount of the original

credit due to the qualied employees rst 12 months of employment

expiring in the PTE’s 2011 scal year.

If a taxpayer with a 2012 Tax Year has received the PTE’s Fiscal

Year 2011 Maryland K-1 during Tax Year 2012, the PTE member

may claim the distributive or pro rata share of the credit that is

reported on the Maryland Schedule K-1.

This credit will only be allowed to the PTE member, if the PTE

had completed and led the Maryland Form 500CR, submitted the

required certications, and had no existing liability to Maryland

and this amount had not been previously claimed.

PART U - FILM PRODUCTION EMPLOYMENT TAX CREDIT

A qualied lm production entity may claim a credit against the state

income tax for lm production activities in the state in an amount

equal to the amount stated in the nal tax credit certicate approved

by the Department of Business and Economic Development (DBED).

If the tax credit allowed exceeds the total tax otherwise payable

by the qualied lm production entity for that taxable year, the

qualied lm production entity may claim a refund in the amount

of the excess.

To claim the credit, before beginning a lm production activity, a

qualied lm production entity shall apply with DBED for an Initial

credit certicate for the estimated production costs The credit

claimed cannot exceed the amount stated In the nal certicate.

No credit may be earned for any scal year beginning on or after

July 1, 2014.

For additional information, contact:

Jack Gerbes, Director

Maryland Film Ofce

Maryland Department of Business and Economic Development

401 E Pratt Street, 14th Floor

Baltimore, MD 21202

410-767-6343

jack@marylandlm.org

NOTE: A copy of the certication by DBED must be included with

form 500CR.

PART V - ELECTRIC VEHICLE RECHARGING EQUIPMENT

TAX CREDIT

An individual or corporation may claim a credit against the state

income tax in an amount equal to 20 percent of the cost of any

qualied electric vehicle recharging equipment placed in service by

the taxpayer during the tax year. The credit may not exceed $400

for each individual recharging system or the state income tax for

the taxable year. Any unused credit amount for the taxable year

may not be carried forward to any other taxable year.

To claim the credit, an individual or corporation shall apply with the

Maryland Energy Administration (MEA) for initial credit certicate

for the number of individual recharging systems. No credit may

be earned for any tax year beginning on or after January 1, 2014.

For additional information, contact:

Maryland Energy Administration

60 West Street, Suite 300

Annapolis, MD 21401

410-260-7655

NOTE: A copy of the certification(s) by Maryland Energy

Administration must be included with form 500CR.

PART W - BUSINESS TAX CREDIT SUMMARY

This part is to summarize all available tax credits reported on this

form. If the total credits available in a particular tax year exceed

the tax developed for that year, the excess may not be refunded.

An addition to income is required for credits from Parts A, C, G,

K and S.

PART X - EXCESS CREDIT CARRYOVER CALCULATION

Most credits may not exceed the Maryland income tax liability, but

may be carried forward for a specied number of successive tax

years or until fully applied. It is your responsibility to maintain a

record of credits for which you qualify, credits that have been taken

in prior years, and the amount of each credit that may be carried

forward. To assist you, the following table provides the number of

years for which each credit may be carried forward.

PART Y - REFUNDABLE BUSINESS INCOME TAX CREDITS

Part Y is used to report the refundable portion of the One Maryland

Economic Development Tax Credit from Part P, the Biotechnology

Investment Incentive Tax Credit from Part L, the Clean Energy

Incentive Tax Credit from Part N, the Job Creation and Recovery

Tax Credit from Part T, the Film Production Employment Credit

from Part U and the Small Business Research and Development

Tax Credit from Part K.

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

10

12-49 Revised 03/14

Part Credit

No

carry-

over

5

years

7

years

10

years

14

years

15

years

A Enterprise Zone Tax Credit X

B RESERVED FOR FUTURE USE

C Maryland Disability Employment Tax Credit X

D Job Creation Tax Credit X

E Community Investment Tax Credit X

F Businesses That Create New Jobs Tax Credit X

G Long-Term Employment of Qualied Ex-Felons Tax Credit X

H Work-Based Learning Program Credit X

I Employer-Provided Long-Term Care Insurance Tax Credit X

J RESERVED FOR FUTURE USE

K Research and Development Tax Credits* X

L Biotechnology Investment Incentive Tax Credit X

M Commuter Tax Credit X

N Clean Energy Incentive Tax Credit X

O Maryland-Mined Coal Tax Credit X

P One Maryland Economic Development Tax Credit X

Q Green Building Tax Credit X

R Bio-Heating Oil Tax Credit X

S Cellulosic Ethanol Technology Research & Development Tax

Credit

X

T Job Creation and Recovery Tax Credit X

U Film Production Employment Tax Credit X

V Electric Vehicle Recharging Equipment Tax Credit X

* The carryforward period for unused Research and Development Tax Credits from tax years prior to 2005 remains 15 years. The

same credit cannot be applied against more than one type of tax by the same taxpayer.

MARYLAND BUSINESS INCOME

TAX CREDITS INSTRUCTIONS

FORM

500CR

2012

Fill Online, Printable, Fillable, Blank Form 2012: 500CR MARYLAND BUSINESS INCOME TAX CREDITS (Comptroller of Maryland) Form

Related forms

Fillable Form 2012: 500CR MARYLAND BUSINESS INCOME TAX CREDITS (Comptroller of Maryland)

Fill Online, Printable, Fillable, Blank Form 2012: 500CR MARYLAND BUSINESS INCOME TAX CREDITS (Comptroller of Maryland) Form

Related forms

First 20 documents completely FREE!