Fill - Free fillable Form 2017: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland) PDF form

COM/RAD-007-1

MARYLAND

FORM

500CRW

WAIVER REQUEST FOR ELECTRONIC

FILING OF FORM 500CR

This form must be attached to form 500CR

2017

OR FISCAL YEAR BEGINNING 2017, ENDING

Federal Employer Identication Number (9 digits) or Social Security Number

Name

Current Address Line 1 (Street No. and Street Name or PO Box)

Current Address Line 2 (Apt No., Suite No., Floor No.)

City or town State ZIP Code +4

Reason For Waiver Request (Please check one):

A. Do not have access to a computer.

B. Software does not support electronic ling of Form 500CR.

C. Other (explain) _________________________________________________________________________________

_____________________________________________________________________________________________

Signature Date

Instructions

Use this form to request a waiver from ling the Form 500CR

electronically. You must include a reason for the waiver

request. If a reason is not checked or an explanation given as

to why you cannot le electronically, the Form 500CR will not

be processed.

The waiver request should be included with the Form

500CR in the ling of your return.

Check here for Identity Theft

Print Using Blue or Black Ink Only

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2017

OR FISCAL YEAR BEGINNING 2017, ENDING

Name as shown on Form Taxpayer Identication Number

PART A - ENTERPRISE ZONE TAX CREDIT ** Must Include Required Certification

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

1. Number of qualified employees. First year Second year Third year

2. Credit for first 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 qualified 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 qualified employees. First year Second year Third year

9. Credit for first 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 qualified 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

Check here if claiming credit for business located in a RISE zone.

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

PART B - HEALTH ENTERPRISE ZONE HIRING TAX CREDIT ** Must Include Required Certification

For qualified employees hired by a Health Enterprise Zone Employer after December 31, 2012 and before January 1, 2017.

1. Number of qualified employees certified by Department of Health and Mental Hygiene.

First year Second year

2. Credit for first year ($5,000 for each qualified employee) ............................ 2

3. Credit for second year ($5,000 for each qualified employee) .......................... 3

4. Tentative amount of Hiring Credit (Add lines 2 and 3.) .............................. 4

5. Enter refund recapture amount .............................................. 5

6. Refundable Hiring Credit (Subtract line 5 from line 4 and enter this amount here and in

PART DD, line 4. If less than zero, enter negative amount.) .......................... 6

PART C - MARYLAND DISABILITY EMPLOYMENT TAX CREDIT FOR EMPLOYEES

PART C-I CREDIT FOR EMPLOYEES WITH A DISABILITY

1. Number of qualified employees. First year Second year

2. Credit for first year (30% of first $9,000 of wages paid to each employee) ............... 2

3. Credit for second year (30% of first $9,000 of wages paid to each employee) ............. 3

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

PART C-II CREDIT FOR CHILD CARE AND TRANSPORTATION EXPENSES

5. Number of qualified employees. First year Second year

6. Credit for first year (limited to a combined total of $900 in child care and transportation

expenses per qualified employee with a disability) ................................ 6

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

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. Include Maryland Schedule K-1 (510) from PTEs or statement from corporate

entity showing your share of the credit. For One Maryland Economic Development Tax Credit,

see instructions.

FEIN

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2017

page 2

7. Credit for second year (limited to a combined total of $900 in child care and

transportation expenses per qualified 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 Include Required Certification

PART D-I CREDIT FOR EMPLOYEES OF A QUALIFIED BUSINESS

1. Total number of qualified positions for the current year ............................. 1

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

3. Enter 2.5% of wages paid for each position from 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 qualified positions for the current year ............................. 5

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

7. Enter 5% of wages paid for each position from 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 Include Required Certification

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 (certified by the State Department of Assessments and Taxation) ....... 1

2. Enhanced property tax credit (certified by the State Department of Assessments and Taxation) 2

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

PART G - QUALIFIED VEHICLE TAX CREDIT (TRACTOR-TRAILER VEHICLE REGISTRATION CREDIT)

** Must Include Required Certification

1. Credit may not exceed $400 per vehicle ....................................... 1

PART H - CYBERSECURITY INVESTMENT INCENTIVE TAX CREDIT ** Must Include Required Certification

NOTE: If you are claiming more than one investment, see instructions for PART H.

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

2. Enter 33% of line 1 ...................................................... 2

NOTE: See Special Instructions for Maryland Cybersecurity Companies located in Allegany County,

Dorchester County, Garrett County, or Somerset County.

3. Maximum Credit ........................................................ 3

NOTE: See Special Instructions for Maryland Cybersecurity Companies located in Allegany County,

Dorchester County, Garrett County, or Somerset County.

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 Cybersecurity Investment Incentive Tax Credit (Subtract line 5 from line 4 and enter this

amount here and in PART DD, line 7. If less than zero, enter negative amount.). ........... 6

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

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2017

page 3

PART J - MARYLAND EMPLOYER SECURITY CLEARANCE COSTS TAX CREDIT ** Must Include Required Certification

PART J-I CREDIT FOR SENSITIVE COMPARTMENTED INFORMATION FACILITY (SCIF) COSTS AND

SECURITY CLEARANCE ADMINSTRATIVE EXPENSES

1. Enter the amount of Construction and Equipment costs that have been certified by the Maryland

Department of Commerce incurred to construct or renovate SCIFs (Include certification.). .... 1

2. Enter the amount of Security Clearance Administrative Expenses approved by the Maryland

Department of Commerce not to exceed $200,000. (Include certification.) ............... 2

3. Total PART J-I Allowable Security Costs Tax Credit (Add lines 1 and 2.) .................. 3

PART J-II FIRST YEAR LEASING COSTS TAX CREDIT FOR QUALIFIED SMALL BUSINESSES

(For first year leasing costs incurred between 1/1/2017 and 12/31/2017.)

Complete ONLY if you are a Small Business (See Instructions.)

1. Enter expenses approved by the Maryland Department of Commerce incurred for rental payments

owed during the first year of a rental agreement for spaces leased in the State if taxpayer is a small

business that performs security-based contracting not to exceed $200,000. (Include certification.)

PART K - RESEARCH AND DEVELOPMENT TAX CREDITS ** Must Include Required Certification

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

FOR THIS CREDIT

1. Basic credit (3%) as certified by the Maryland Department of Commerce ................ 1

2. Growth credit (10%) as certified by the Maryland Department of Commerce .............. 2

3. Total (Add lines 1 and 2.) Enter here and on Line 11 of PART BB. ...................... 3

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

FOR THIS CREDIT

4. Basic credit (3%) as certified by the Maryland Department of Commerce ................ 4

5. Growth credit (10%) as certified by the Maryland Department of Commerce .............. 5

6. Total (Add lines 4 and 5.) Enter here and on Line 6 of PART DD ....................... 6

PART L - BIOTECHNOLOGY INVESTMENT INCENTIVE TAX CREDIT ** Must Include Required Certification

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

NOTE: See Special Instructions for Maryland Biotechnology Companies located in Allegany County,

Dorchester County, Garrett County, or Somerset County.

3. Maximum Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

NOTE: See Special Instructions for Maryland Biotechnology Companies located in Allegany County,

Dorchester County, Garrett County, or Somerset County.

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 DD, line 2. If less than zero, enter negative amount.) ............ 6

PART M - COMMUTER TAX CREDIT

1. Amount of commuter benefits paid ........................................... 1

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

3. Number of employees for which commuter benefits were paid ........................ 3

4. Multiply the number of employee-months by $100 ........................... 4

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

PART N - CLEAN ENERGY INCENTIVE TAX CREDIT ** Must Include Required Certification

1. Enter the number of kilowatt hours of electricity not co-fired with coal .

Multiply this number by .85 cents (.0085) ....................................... 1

2. Enter one-fifth of the amount stated on the initial credit certificate .................... 2

3. Enter the lesser of line 1 or line 2. Enter this amount in PART DD, line 3 ................. 3

PART O - MARYLAND-MINED COAL TAX CREDIT ** Must Include Required Certification

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

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

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2017

page 4

PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX CREDIT **Must Include Required Certification

PART P-I CALCULATION OF TAXABLE INCOME, WITHHOLDING, QUALIFIED

EMPLOYEES AND TAX LIABILITY

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 qualified employees (DO NOT PRORATE.) ...... 4a

4b. Have you maintained at least 25 qualified employees for at least 5 years? 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 “No,”

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 qualified 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 21 less any amounts from lines 22 through 24 of Form 502; or,

line 32c less any amounts from lines 33 and 34 of Form 505.

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.

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

Complete Part P-II to calculate the portion of the credits allowable for this tax year that

will reduce your tax liability.

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 10; 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

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

Column 1

All qualified persons,

but NOT PTE members

Column 2

PTE members only

(enter your pro rata

share from PTE)

All qualified persons

(except for PTEs)

including PTE members

. .

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2017

page 5

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 qualified employees

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

29. Refund allowable for this tax year. Subtract line 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 qualified 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

PART Q - OYSTER SHELL RECYCLING TAX CREDIT ** Must Include Required Certification

1. Credit (certified by the Maryland Department of Natural Resources),

may not exceed $750 per taxpayer ........................................... 1

PART R - BIO-HEATING OIL TAX CREDIT ** Must Include Required Certification

1. Credit (certified by the Maryland Energy Administration), may not exceed $500 ............ 1

PART S - CELLULOSIC ETHANOL TECHNOLOGY RESEARCH AND DEVELOPMENT TAX CREDIT

** Must Include Required Certification

1. Credit (certified by the Maryland Department of Commerce) ......................... 1

PART T - WINERIES AND VINEYARDS TAX CREDIT ** Must Include Required Certification

1. Credit (certified by the Maryland Department of Commerce) ......................... 1

PART U - FILM PRODUCTION ACTIVITY TAX CREDIT

** Must Include Required Certification

1. Credit (certified by the Maryland Department of Commerce) ......................... 1

PART V - ENDOW MARYLAND TAX CREDIT ** Must Include Required Certification

1. Amount of approved donation to a qualified permanent endowment fund ................ 1

2. Enter 25% of line 1 ...................................................... 2

3. Enter the amount from line 2 or $50,000, whichever is less .......................... 3

PART W - AEROSPACE, ELECTRONICS, OR DEFENSE CONTRACT TAX CREDIT ** Must Include Required Certification

1. Number of qualified employees .............................................. 1

2. Multiply line 1 by $250 .................................................... 2

3. Maximum Credit ......................................................... 3

$2,500,000.00

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 Aerospace, Electronics, or Defense Contract Tax Credit (Subtract line 5 from line 4 and

enter this amount here and in Part DD, line 8) .................................... 6

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2017

page 6

PART X - CREDIT FOR PRESERVATION AND CONSERVATION EASEMENTS ** Must Include Required Certification

1. Enter the portion of the total current-year conveyance amount ..................... 1

2. Enter the amount of any payment received for the easement during 2017 ............... 2

3. Subtract line 2 from line 1 ................................................ 3

4. Enter the lesser of line 3 or $5,000 here and on Part BB, line 24 ...................... 4

PART Y - APPRENTICE EMPLOYEE TAX CREDIT ** Must Include Required Certification

1. Total number of eligible apprentices for the current year ........................... 1

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

PART Z - QUALIFIED FARMS TAX CREDIT ** Must Include Required Certification

1. Credit (Total of Tax Credit Certificates) ....................................... 1

PART AA - QUALIFIED VETERAN EMPLOYEES TAX CREDIT** Must Include Required Certification

1. Credit (certified by the Maryland Department of Commerce) ........................ 1

PART BB - BUSINESS TAX CREDIT SUMMARY

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

2. Health Enterprise Zone Hiring Tax Credit (See PART DD, line 4.) ...................... 2 XXXXXXXXXXX

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. Qualified Vehicle Tax Credit from PART G, line 1 ................................. 7

8. Total Cybersecurity Investment Incentive Tax Credit (See PART DD, line 7.) .............. 8 XXXXXXXXXXX

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

10a. Total Security Clearance Costs Tax Credit, PART J-I, line 3 .......................... 10a

10b. Total First Year Leasing Cost Tax Credit for Small Businesses, PART J-II, line 1 ........... 10b

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

12. Total Biotechnology Investment Incentive Tax Credit (See PART DD, line 2.) ............. 12 XXXXXXXXXXX

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

14. Total Clean Energy Incentive Tax Credit (See PART DD, line 3.) ....................... 14 XXXXXXXXXXX

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 Oyster Shell Recycling 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. Total Wineries and Vineyards Tax Credit from PART T, line 1. ........................ 20

21. Film Production Activity Tax Credit (See PART DD, line 5.) .......................... 21 XXXXXXXXXXX

22. Endow Maryland Tax Credit from PART V, line 3. ................................. 22

23. Total Aerospace, Electronics, or Defense Contract Tax Credit (See PART DD, line 8.) ....... 23 XXXXXXXXXXX

24. Total Preservation and Conservation Easements Tax Credit from PART X, line 4 ............24

25. Total Apprentice Employee Tax Credit (See PART Y, line 2.) ......................... 25

26. Total Qualified Farms Tax Credit (See PART Z, line 1.) ............................. 26

27. Total Qualified Veteran Employees Tax Credit (See PART AA, line 1.) ................... 27

28. Total of current year credits (Add lines 1 through 27.) ............................. 28

29. Carryover of excess credits from PART Z, line 7, of tax year 2016 Form 500CR ........... 29

30. Tentative credit. (Add lines 28 and 29.) ....................................... 30

31. Enter amount of any credit recapture. (See instructions for PART D and PART F.) .......... 31

32. Tentative credit after recapture. (Subtract line 31 from line 30.)

If less than 0, enter negative amount ......................................... 32

33. Enter tax from:

line 14 of Form 500;

line 21 less any amounts from lines 22-24 of Form 502; or

line 32c less any amounts from lines 33 and 34 of Form 505. If less than 0, enter 0. ....... 33

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2017

page 7

34. Allowable credit (Enter line 32 or line 33, whichever is less.)

Also enter this amount on line:

15c of Form 500, 25 of Form 502, or 35 of Form 505. ............................. 34

NOTE: An addition to income is required for credits from Parts A, C, J-I, K-I, K-II, S and V. From PART V add line 1. From

PART BB add lines 1, 3, 10a, 11 and 19. Also add PART DD, line 6. Enter the result on line 7f of Form 500, line 5 of Form 502,

or line 19 of Form 505.

PART CC - EXCESS CREDIT CARRYOVER CALCULATION

If line 32 is less than or equal to line 33 of PART BB, do not complete this section.

1. Enter amount from line 33 of PART BB ........................................ 1

2. Add lines 7, 13, 15, 16, 17, 18 and 27 of PART BB ................................ 2

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

4. Subtract line 2 from line 32 of PART BB ....................................... 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 DD - REFUNDABLE BUSINESS INCOME TAX CREDITS

1. Total refundable One Maryland Economic Development Tax

Credit from PART P-IV, 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 3. . . . . . . . . . . . . . . . . . . . . . . . . . 3

4. Total Health Enterprise Zone Hiring Credit from PART B, line 6 ........................ 4

5. Total Film Production Activity Tax Credit from PART U, line 1 ......................... 5

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

7. Total Cybersecurity Investment Incentive Tax Credit from PART H, line 6 ................ 7

8. Total Aerospace, Electronics, or Defense Contract Tax Credit from Part W, line 6 ............8

9. Total refundable business income tax credits (Add lines 1 through 8.)

(If less than 0, enter as a negative amount)

If you are filing Form 502 or Form 505, enter this amount on line 9 and on

PART M, line 3 of Form 502CR. If you are filing Form 500 or Form 510, continue to PART EE ... 9

PART EE - CORPORATION AND PASS-THROUGH ENTITY (PTE) REFUNDABLE TAX CREDIT

1. Enter the amount from Maryland Form 502S, line 6 ................................ 1

2. Total refundable business income tax credits from PART DD, line 9 ..................... 2

3. Total refundable business income tax credits. Add line 1 and line 2 and enter the amount

here and on Form 500, line 15d. (If less than 0, enter as a negative amount.) ............. 3

NOTE: If you are filing Form 510, enter the distributive or pro rata share of each tax credit on your members

Maryland Schedule K-1 (510).

17-49

Electronic Format The paper version of Maryland Form 500CR

is no longer available. You must file your Maryland return

electronically to claim the business income tax credits available

from Form 500CR.

Tax-exempt organizations Organizations that are tax-exempt

under Internal Revenue Code Section 501(c)(3) may be eligible

to claim certain business tax credits against their withholding

taxes. These qualied organizations no longer will use Form

500CR, but will use Form MW508CR as an attachment to Form

MW508 (Annual Employer Withholding Reconciliation Return). See

Administrative Release 34.

GENERAL INSTRUCTIONS

Purpose Maryland Form 500CR is used to claim the following

business tax credits against corporation and individual income tax.

Tax Credit Part

Aerospace, Electronics, or Defense Contract Tax

Credit**

Apprentice Employee Tax Credit** Y

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**

Clean Energy Incentive Tax Credit** N

Community Investment Tax Credit** E

Commuter Tax Credit M

Cybersecurity Investment Incentive Tax Credit** H

Employer-Provided Long-Term Care Insurance Tax

Credit

Endow Maryland Tax Credit** V

Enterprise Zone Tax Credit** A

Film Production Activity Tax Credit** U

First-Year Leasing Costs Tax Credit for Qualied

Small Businesses**

J-II

Health Enterprise Zone Hiring Tax Credit** B

Heritage Structure Rehabilitation Tax Credit from

Form 502S

Job Creation Tax Credit** D

Maryland Disability Employment Tax Credit** C

Maryland Employer Security Costs Tax Credit** J-I

Maryland-Mined Coal Tax Credit** O

One Maryland Economic Development Tax Credit** P

Oyster Recycling Tax Credit** Q

Preservation and Conservation Easements Tax Credit X

Qualied Farms Tax Credit** Z

Qualied Vehicle Tax Credit** G

Qualied Veteran Employees Tax Credit** AA

Research and Development Tax Credits** K

Wineries and Vineyards Tax Credit** T

**Required Certication must be included with Form 500CR.

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

electronic Form 510 must be led and the Form 500CR section

must be completed through line 28, Part BB, for the PTE to pass on

these business tax credits to its members. The PTE must provide

a Maryland Schedule K-1 (510) to each partner, shareholder, or

member, or beneciary with a statement showing their share

of each credit in Parts BB, DD, and EE. In addition, if the PTE is

passing on the Heritage Structure Rehabilitation Tax Credit, it must

complete the Form 502S section and enter the amount on line 1

of Part EE. Required certication must be included.

If you are a PTE claiming the One Maryland Economic Development

Tax Credit, refer to the instructions in Part P before completing

the Maryland Schedule K-1 (510) for your members. There are

additional reporting requirements unique to the One Maryland

Credit.

PTE member Any credit from a PTE ling a scal year return is

considered to be received by the member(s) on the last day of

the PTE’s scal year. The PTE member should claim the credit

on the member’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.

Special Note for PTE Members: If you are a PTE member

receiving a distributive or pro rata share of credits, the required

certication will have a different Taxpayer Identication Number

than you have listed on your return for yourself, or for the

business. Be sure to check the box as you begin to enter Form

500CR information into your return. It is important that you

provide the PTE’s Federal Employer Identication Number (FEIN)

to ensure your credit is not disallowed. Check the box on page

1 of Form 500CR to indicate that credits are from a PTE and

enter the PTE’s FEIN. Include the Maryland Schedule K-1 (510)

from the PTEs showing your share of the credit and any credits

passing through to you.

Note: Some state agencies will only provide certication to the

parent of a corporation, which in turn passes the information

down to its subsidiaries. It is important to identify FEINs and

business names in this situation to avoid processing delays.

If credits are received from more than one entity, include a list

of the other entities with names, FEINs, type of credit and the

amount of credit for each entity providing credit information.

Exception: Credits received from PTEs If you have received

distributive or pro rata share of tax credits reported on a

Maryland Schedule K-1 (510), you do not need to complete the

calculations for the credit. The amount which you enter in each

section should be carried over to the appropriate elds in the

Summary, Parts BB, CC or DD. In addition, PTE members that

are corporations or PTEs should complete Part EE.

Credits claimed by both spouses on a joint return Only one

Form 500CR is completed, which will combine the amounts for

both spouses.

Other Information If a 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, do so immediately.

Amended Returns You will need to le an electronic Maryland

amended return to make changes affecting Form 500CR.

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 the purpose of claiming the credit,

Enterprise zones include Regional Institution Strategic

Enterprise (RISE) zones as dened in Section 5-1401(e) of

the Economic Development Article. For businesses located in

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2017

17-49

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 Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4041

Economically disadvantaged employees are those who are certied

as such by:

Maryland Department of Labor, Licensing and Regulation

Division of Workforce Development and Adult Learning

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.

On line 1, Part A-I, enter the number of economically disadvantaged

qualied employees not located in a focus area in their rst year

of employment on the “First Year” line. Also, enter the number

of these qualied employees on their respective second and third

year lines.

On line 2, Part A-I, enter the credit equal to the wages paid to each

rst year employee up to a maximum of $3,000 per employee.

On line 3, Part A-I, enter the credit equal to the wages paid to each

second year employee up to a maximum of $2,000 per employee.

On line 4, Part A-I, enter the credit equal to the wages paid to each

third year employee up to a maximum of $1,000 per employee.

On line 5, Part A-I, enter the sum of lines 2 through 4.

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 located in a focus area 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.

On line 6, Part A-II, enter the number of rst-year qualied

employees who are not located in a focus area who were not

claimed in Part A-I.

On line 7, Part A-II, enter the amount of wages for these employees

up to a maximum of $1,000 per employee.

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.

On line 8, Part A-III, enter the number of economically

disadvantaged qualied employees located in a focus area in their

rst year of employment on the “First Year” line. Also, enter the

number of these qualied employees on their respective second

and third year lines.

On line 9, Part A-III, enter the credit equal to the wages paid to

each rst year employee up to a maximum of $4,500 per employee.

On line 10, Part A-III, enter the credit equal to the wages paid

to each second year employee up to a maximum of $3,000 per

employee.

On line 11, Part A-III, enter the credit equal to the wages paid

to each third year employee up to a maximum of $1,500 per

employee.

On line 12, Part A-III, enter the sum of lines 9 through 11.

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

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

located in a focus area 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.

On line 13, Part A-IV, enter the number of rst-year qualied

employees located in a focus area who were not claimed in Part

A-III.

On line 14, Part A-IV, enter the amount of wages for these

employees up to a maximum of $1,500 per employee.

PART A - Summary

Check the box if you are claiming a credit for a business located

in a RISE zone as dened in Section 5-1401(e) of the Economic

Development Article.

Add lines 5, 7, 12 and 14 and enter total on line 15, Part A.

Also the amount on line 15, Part A, becomes an addition

modication. Whenever an Enterprise Zone Tax Credit is claimed,

an addition modication must be made in the amount of the credit

claimed.

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

This credit is not refundable and is applied only against the

Maryland State income tax. To the extent the credit is earned

in any year and it exceeds the State income tax, the business is

entitled to an excess carryover of the credit until it is used, or the

expiration of ve years, whichever comes rst.

Business must include certication with the return which shows

the business is located in a Maryland enterprise zone.

Maryland has more than 30 enterprise zones. Counties and

municipalities are responsible for certifying a business as eligible

for the tax credits. Contact the county or municipal enterprise

zone administrator for more information. The Maryland Department

of Commerce has a list of jurisdictions with enterprise zones on

its Web site. Go to commerce.maryland.gov to see the list of

Maryland Enterprise Zones by Region.

PART B – HEALTH ENTERPRISE ZONE HIRING TAX CREDIT

General Requirements A Health Enterprise Zone (HEZ) Employer

may be eligible for tax credits based on wages paid to qualied

employees.

A “Health Enterprise Zone Employer” means a HEZ Practitioner,

a for-prot entity, or a nonprot entity that employs qualied

employees and provides health care services in a HEZ.

A “Health Enterprise Zone Practitioner” is a health care practitioner

who is licensed or certied under the Maryland Health Occupations

Article and who provides:

• Primary care, including obstetrics, gynecological services,

pediatric services, or geriatric services;

• Behavioral health services, including mental health or

alcohol and substance abuse services; or,

• Dental services.

A “qualied employee” is a HEZ Practitioner, community health

worker, or interpreter who:

(1) Provides direct support to a HEZ practitioner; and

(2) Expands access to services in a HEZ.

A qualied position is a full-time position of indenite duration,

which pays at least 150% of the federal minimum wage, is located

in a HEZ, and is newly created as a result of the establishment or

expansion of services in a HEZ and is lled. A qualied position

does not include a position that is lled for a period of less than

12 months.

A HEZ Employer may claim a refundable credit of $10,000 for hiring

a qualied employee in a qualied position in a HEZ, as certied

by the Department of Health and Mental Hygiene (DHMH).

To be eligible for the credit, the HEZ Employer may create one or

more qualied positions within a 24-month period. The $10,000

credit must be taken over a 24-month period, with half of the credit

amount allowed beginning with the rst year certied.

Recapture Provision If the qualied position is lled for a period

of less than 24 months, the tax credit will be recaptured. The tax

credit will be reduced on a prorated basis, based on the period of

time the position was lled.

For information on the location of HEZs and the standards which

HEZ Employers must meet to qualify, contact:

Maryland Department of Health and Mental Hygiene

Health Systems & Infrastructure Administration

201 West Preston Street

Baltimore, MD 21201

410-767-8649

roxanne.hale@maryland.gov

Specic Requirements

Complete lines 1 through 6 in Part B of Form 500CR if the HEZ

Employer is located in a HEZ.

Line 1: Enter the amount of qualied employees certied by the

Department of Health and Mental Hygiene (DHMH) on the

appropriate line(s).

Line 2: Enter $5,000 for each qualied employee certied by the

DHMH in their rst year of employment.

Line 3: Enter $5,000 for each qualied employee certied by the

DHMH in their second year of employment.

Line 4: Enter the sum of lines 2 and 3.

Line 5: Enter the refund recapture amount, if applicable as a

positive number.

Line 6: Subtract line 5 from line 4 and enter the result on line 6

and on line 4, Part DD. If the result is less than 0, enter

as a negative amount.

Note: A copy of the DHMH certication must be included with your

tax return when claiming this tax credit.

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

after January 1, 2017.

A nonrefundable HEZ Practitioner Tax Credit is available on

Maryland Form 502CR, Tax Credits for Individuals. Go to www.

marylandtaxes.gov to download a copy of that form.

For more information about the HEZ Hiring Tax Credit certication,

contact: DHMH.

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). A

copy of the DORS or DLLR certication must be included with your

tax return when claiming this tax credit.

For certication or for additional information, contact:

Maryland State Department of Education

Division of Rehabilitation Services

2301 Argonne Drive

Baltimore, MD 21218

1-888-554-0334 or 410-554-9442

dors.maryland.gov

o r,

Maryland Department of Labor, Licensing and Regulation

1100 N. Eutaw St., Room 201

Baltimore, MD 21201

410-767-2047

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

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

dened by the Americans with Disabilities 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

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

disability.

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 $9,000 of qualied rst year wages and 30% of the rst

$9,000 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,

the portion of the year the employee worked unless the

employee voluntarily left to take another job.

On line 1, Part C-I, enter the number of qualied employees in

their rst year of employment on the “First Year” line. Enter the

number of qualied employees in their second year of employment

on the “Second Year” line.

On line 2, Part C-I, enter the credit equal to 30% of the rst $9,000

of wages paid to each rst year qualied employee.

On line 3, Part C-I, enter the credit equal to 30% of the rst $9,000

of wages paid to each second year qualied employee.

On line 4, Part C-I, enter the sum of lines 2 and 3.

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 $900 is allowed for the rst year of employment

and up to $900 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.

On line 5, Part C-II, enter the number of qualied employees in

their rst year of employment on the “First Year” line. Enter the

number of qualied employees in their second year of employment

on the “Second Year” line.

On line 6, Part C-II, enter the credit equal to a combined total of

$900 in child care and transportation expenses per each rst year

qualied employee with a disability.

On line 7, Part C-II, enter the credit equal to a combined total of

$900 in child care and transportation expenses per each second

year qualied employee with a disability.

On line 8, Part C-II, enter the sum of lines 6 and 7.

PART C - Summary

On line 9, Part C, enter the sum of lines 4 and 8.

Also the amount on line 9, Part C, becomes an addition modication.

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

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

This credit is not refundable and is applied only against the

Maryland State income tax. To the extent the credit is earned

in any year and it exceeds the State income tax, the business is

entitled to an excess carryover of the credit until it is used, or the

expiration of ve years, whichever comes rst.

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 certied as such by the

Maryland Department of Commerce. A qualied employee is an

employee lling a qualied position.

This credit is not refundable and is applied only against the

Maryland State income tax. To the extent the credit is earned

in any year and it exceeds the State income tax, the business is

entitled to an excess carryover of the credit until it is used, or the

expiration of ve years after the credit was earned, whichever

comes rst.

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 31,

Part BB of Form 500CR.

Certication must be included with the Form 500CR when claiming

this credit.

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

must meet to qualify, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

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-I reects the calculation of the credit for employees of a

qualied business that is not located in a Revitalization Area.

Enter the number of qualied positions for the current year on

line 1, Part D-I.

Multiply line 1 by $1,000 and enter the result on line 2, Part D-I.

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

Enter on line 3, Part D-I, 2.5% of the wages paid for each of the

qualied positions on line 1.

On line 4, Part D-I, enter the lesser of line 2 or line 3.

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-II reects the calculation of the credit for employees of a

qualied business working in a facility located in a Revitalization

Area.

Enter the number of qualied positions working in a Revitalization

Area for the current year on line 5, of Part D-II.

Multiply line 5 by $1,500 and enter the result on line 6, Part D-II.

Enter on line 7, Part D-II, 5% of the wages paid for each of the

qualied positions on line 5.

On line 8, Part D-II, enter the lesser of line 6 or line 7.

PART D - Summary

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.

Enter the total credits calculated for the current year by taking the

sum of line 4 and line 8 and entering the result on line 9, Part D.

On line 10, Part D, enter the lesser of line 9 or $1,000,000.

Calculate the current year credits available by multiplying the

amount on line 10 by 50% and entering the result on line 11, Part D.

Enter on line 12, Part D, 50% of the amount of credits from the

prior year.

Add lines 11 and 12 to obtain the amount of Job Creation Tax

Credits that may be claimed this year. Enter the result on line

13, Part D.

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

after January 1, 2020.

PART E - COMMUNITY INVESTMENT TAX CREDIT

Businesses or individuals who contribute to approved Community

Investment Programs may be eligible for a credit against the

Maryland State income tax. Contributions must be made to a

nonprot organization approved by the Department of Housing

and Community Development (DHCD). The taxpayer must apply

to and receive approval by the DHCD 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.

Businesses and PTE members who are eligible to claim the

Community Investment Tax Credit must claim the credit on the

Form 500CR. Individuals who are eligible to claim the Community

Investment Tax Credit and who are not PTE members may claim

this credit on the Form 502CR instead of the Form 500CR.

However, an individual may not claim the credit on both the Form

502CR and the Form 500CR.

Individuals who anticipate having a carryover of the Community

Investment Tax Credit are advised to le using Form 500CR

instead of Form 502CR. Individuals who have an existing

carryover on Part Z of their 2016 Form 500CR may elect to use

Form 502CR, if their excess carryover credit is attributable only

to the Community Investment Tax Credit.

Note: A copy of the required approval from the DHCD must be

included with Form 500CR.

Specic Instructions

Enter the amount of approved contributions on line 1, Part E.

Enter 50% of line 1 on line 2, Part E.

On line 3, enter the lesser of line 2 or $250,000.

Also, enter this amount on line 5, Part BB.

This credit is not refundable and is applied only against the

Maryland State income tax. To the extent the credit is earned

in any year and it exceeds the State income tax, the individual

or business is entitled to an excess carryover of the credit until

it is used, or it expires ve years after the credit was earned,

whichever comes rst.

For more information contact:

Department of Housing and Community Development

Division of Neighborhood Revitalization

2 N. Charles St., Suite 450

Baltimore, MD 21201

410-209-5800

citc.nr@maryland.gov

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

(SDAT).

Businesses certied by SDAT for the Businesses that Create New

Jobs Property Tax Credit will enter the amount of income tax credit

for which they have been certied on line 1, Part F.

Businesses certied by SDAT for the Businesses that Create New

Jobs Enhanced Property Tax Credit will enter the amount of income

tax credit for which they have been certied on line 2, Part F.

Enter the total of the certied amount by adding lines 1 and 2 and

entering the result on line 3, Part F.

Also enter this amount on line 6, Part BB.

This credit is not refundable and is applied only against the

Maryland State income tax. To the extent the credit is earned

in any year and it exceeds the State income tax, the individual

or business is entitled to an excess carryover of the credit until

it is used, or it expires ve years after the credit was earned,

whichever comes rst.

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 31, Part

BB, of Form 500CR and led with the tax return for the tax year

in which the business failed to satisfy the applicable thresholds.

For more information contact:

State Department of Assessments and Taxation

301 W. Preston Street

Baltimore, MD 21201-2395

410-767-1191

taxcredits@maryland.gov

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

PART G - QUALIFIED VEHICLE TAX CREDIT (TRACTOR-

TRAILER VEHICLE REGISTRATION TAX CREDIT)

General requirements A credit is allowed for the expense of

registering a qualied vehicle in Maryland. “Qualied vehicle”

means a Class F (Tractor) vehicle described under § 13-923(a) of

the Transportation Article that is titled and registered in Maryland.

Upon approval of an application by an individual or business,

the Maryland Vehicle Administration (MVA) will issue a tax credit

certicate in the amount of $400 for each qualifying vehicle

registered during the taxable year. The aggregate amount of

the tax credit certicate issued may not exceed $10,000 for any

one taxpayer. An individual or business that obtains a tax credit

certicate may claim credit against the State income tax for the

amount on the tax credit certicate. The credit allowed may not

exceed the State income tax for the taxable year.

The credit is claimed on Part G, line 1, and is also entered on

Business Tax Credit Summary, Part BB, line 7.

Any unused credit amount for the tax year may not be carried

forward to any other taxable year.

Note: A copy of the tax credit certicate from MVA must be included

with your tax return when claiming this tax credit.

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

after January 1, 2020.

PART H - CYBERSECURITY INVESTMENT INCENTIVE TAX

CREDIT

General Requirements A credit is available for an investment in

a qualied Maryland cybersecurity company (QMCC). The credit

is claimed by a QMCC. To qualify, a company can be an 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 engaged primarily

in the development of innovative and proprietary cybersecurity

technology.

The QMCC must:

• Have its headquarters and base of operations in

Maryland;

• Have not participated in the tax credit program for more

than 1 prior scal year;

• Have been in active business no longer than 5 years;

• Have an aggregate capitalization of at least $100,000;

• Own or have properly licensed any proprietary

technology;

• Have fewer than 50 full-time employees;

• Not have its securities publicly traded on any exchange;

• Be in good standing;

• Be current in the payment of all tax obligations to

Maryland or any unit or subdivision of Maryland;

• Not be in default under the terms of any contract with,

indebtedness to, or grant from Maryland or any unit or

subdivision of Maryland; and

• Meet any other requirements of the Maryland

Department of Commerce evidencing that the QMCC is

a going concern primarily engaged in the development

of innovative and proprietary cybersecurity technology.

The amount of the credit is 33% of the investment in the QMCC,

not to exceed $250,000. For a QMCC located in Allegany County,

Dorchester County, Garrett County, or Somerset County, the

amount of the credit is 50% of the investment in the QMCC, not

to exceed $500,000. The investment cannot include debt. The

investment must be the contribution of money in cash or cash

equivalents expressed in United States dollars, at risk of loss,

to a QMCC in exchange for stock, a partnership or membership

interest, or any other ownership interest in the equity of the

QMCC, title to which the ownership interest shall vest in the

qualied investor. “Qualied investor” means an individual

or entity that is required to le an income tax return in any

jurisdiction and invests at least $25,000 in a QMCC. However,

the qualied investor may not, after making the investment, own

or control more than 25% of the equity interest in the QMCC.

See § 10-733 of the Tax-General Article.

The QMCC must apply for and receive nal certication from the

Maryland Department of Commerce to claim the Cybersecurity

Investment Incentive Tax Credit.

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438

Specic Requirements

The QMCC may claim the tax credit for the amount provided in

the nal certicate. If the credit 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 investment is made in the QMCC.

The nal certicate received from the Maryland Department of

Commerce is required to be included with your return for the

Cybersecurity Investment Incentive Tax Credit to be allowed.

Complete Part H using the information provided in the nal

certicate and enter the amount of the approved investment on

line 1.

On line 2, Part H, enter 33% of the approved investment.

For a QMCC located in Allegany County, Dorchester County,

Garrett County or Somerset County, enter 50% of the approved

investment.

Line 3, Part H, reects the maximum dollar amount of credit per

investment. Enter $250,000. For a QMCC located in Allegany

County, Dorchester County, Garrett County or Somerset County,

enter $500,000.

On line 4, Part H, enter the lesser of line 2 or line 3.

On line 5, Part H, enter any applicable recapture amount. See

more information below about recapture amounts.

On line 6, Part H, subtract line 5 from line 4. If the amount is less

than zero, enter a negative amount.

Enter the amount from line 6, Part H, on line 7, Part DD.

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

another separate Part H must be completed for each investment.

Total the amounts from line 6 from each separate Part H. Using

only one summary section, combine the total on line 7, Part DD.

To claim the total credit, you must complete a second Part H at

the time you electronically le your income tax return.

Recapture of Credit 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:

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

• 100%, if the event requiring recapture of the credit

occurs during the tax 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 tax

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 tax year for which the tax credit is claimed.

The amount of recapture is entered onto line 5, Part H.

The credit may also be subject to a recapture if the certicate

is rescinded by the Maryland Department of Commerce due to

the QMCC failing to provide the required notice to the Maryland

Department of Commerce of having made the investment,

or if the Maryland Department of Commerce revokes the nal

certication due to false representations made in connection with

the application for the certication.

Pass-through Entities If the credit is claimed by a QMCC that

is a PTE, the members of the PTE may claim the distributive or

pro rata shares of the credit amount subject to the $250,000

limitation (or $500,000 for a QMCC located in Allegany County,

Dorchester County, Garrett County or Somerset County). A PTE

that earned the Cybersecurity Investment Incentive Tax Credit

must electronically le the Maryland Form 510, Form 500CR and

all other required attachments for members to be permitted to

claim the credit. See Form 510 instructions.

For a member of the PTE to be allowed the credit, the member

must complete the Form 500CR section of their electronically-led

Maryland return and include a copy of the nal certication from

the Maryland Department of Commerce and Maryland Schedule

K-1 (510) showing the allocated share of the credit amount.

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.

Specic Instructions

On line 1, Part I, enter 5% of the long-term care insurance

premiums paid as part of an employee benet package.

On line 2, Part I, enter the number of employees within Maryland

covered under the employee benet package on the line provided.

Multiply this by $100 and enter the result on line 2.

On line 3, Part I, enter the lesser of line 1 or line 2.

On line 4, Part I, enter the lesser of line 3 or $5,000.

Also enter the amount from line 4, Part I, on line 9, Part BB.

This credit is not refundable and is applied only against the

Maryland State income tax. To the extent the credit is earned

in any year and it exceeds the State income tax, the business is

entitled to an excess carryover of the credit until it is used, or the

expiration of ve years after the credit was earned, whichever

comes rst.

PART J – MARYLAND EMPLOYER SECURITY CLEARANCE

COST (ESCC) TAX CREDIT

A business may be eligible to claim credits against the State income

tax for certain costs related to federal-based security contracting.

For a business to be eligible, it must apply to and be certied by

the Maryland Department of Commerce.

PART J-I – Credits for Sensitive Compartmented Information

Facilities (SCIFs) and Security Clearance Administrative

Expenses

A business may claim a credit against its Maryland State income tax

for costs related to the construction or renovation of SCIF located in

Maryland. The SCIF must be accredited by the appropriate federal

agency. For costs related to a single SCIF, the credit is equal to

the lesser of 50% of the costs or $200,000. For costs related to

multiple SCIFs, the credit is the amount of costs up to $500,000

per calendar year.

Also, a business may claim a credit against its Maryland State

income tax up to $200,000 per tax year for qualied security

clearance administrative expenses.

Qualied expenses include:

• Processing application requests for federal security clearance;

• Maintaining, upgrading or installing computer systems in

Maryland that are required to obtain federal security clearance;

and,

• Training employees in the State to administer the clearance

application process.

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

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

in Part J-I, line 3.

Claiming the Tax Credit

To claim the ESCC tax credit, a business must submit an application

to the Maryland Department of Commerce by September 15th

following the tax year in which the related expenses and costs

were incurred. By December 15th of that year, the Maryland

Department of Commerce will certify the approved amount for

which the applicant will be required to le an electronic amended

Maryland income tax return with the Comptroller of Maryland to

claim the credit and include a copy of the Maryland Department

of Commerce certication.

The business will enter the Maryland Department of Commerce-

certied amount of construction and equipment costs incurred to

construct or renovate SCIFs on line 1, Part J-I.

On line 2, Part J-I, the business will enter the amount of certied

Security Clearance Administrative expenses, not to exceed

$200,000.

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

also is an addition modication on the tax return.

PART J-II – The First Year Leasing Costs Tax Credit for

Qualied Small Businesses

A qualied small business also may claim a credit against its

Maryland income tax up to $200,000 for costs for rental payments

during the rst year of a rental agreement for leasing spaces to

perform security-based contracting work.

In Part J-II, a qualied small business will claim the amount of

First Year Leasing Costs Tax Credit approved by the Maryland

Department of Commerce.

The total ESCC tax credit approved by the Maryland Department

of Commerce may not exceed $2 million for any calendar year. If

the total amount of credits applied for by all businesses exceeds

$2 million, the credits will be approved on a pro rata basis.

Excess credit may be carried forward until the excess amount is

fully used.

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

after January 1, 2022.

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

For more information, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4041

PART K - RESEARCH AND DEVELOPMENT TAX CREDITS

Businesses that incur qualied 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

$12,000,000 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 Commerce 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 the Maryland Department of

Commerce 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 Maryland Department of Commerce-

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

Maryland Department of Commerce-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 BB. 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 Maryland Department of Commerce-

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

Maryland Department of Commerce-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 6, Part DD. Also, this amount is an

addition modication on the tax return.

For certication and further information contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

PART L - BIOTECHNOLOGY INVESTMENT INCENTIVE TAX

CREDIT

General Requirements A credit is available for an investment

in a qualified Maryland biotechnology company (QMBC). 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, or within 2 months

will 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.

QMBC Requirements

The QMBC 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 12 years;

• Have been certied as a biotechnology company by the

Maryland Department of Commerce; and,

• Must not have any securities publicly traded on any exchange.

A QMBC includes:

• A company that has been in active business for up to 15

years, with the Maryland Department of Commerce approval;

• A company that has been in active business no longer

than 12 years from the date the company rst received a

qualied investment under this section; or,

• A company that, within 2 months of the receipt of the

investment, has met the of requirements of a QMBC. Failure

to meet the requirements of a QMBC may result in revocation

of the tax credit certicate and recapture of any tax credits

already claimed by the qualied investor.

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 QMBC

(but not own more than 25% of the equity interests in the

company after making the investment);

• Must be required to file an income tax return in any

jurisdiction; and,

• Must apply for and receive final certification from

the Maryland Department of Commerce 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. For

a QMBC located in Allegany County, Dorchester County, Garrett

County or Somerset County, the amount of the credit is 75%

of the investment in the QMBC, not to exceed $500,000. The

investment must be the contribution of money in cash or cash

equivalents expressed in United States dollars, at risk of loss,

to a QMBC 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.

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438

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 QMBC.

Both the nal certicate received from the Maryland Department

of Commerce and a statement of afdavit (see below) as prepared

by the investor are required to be included with your return for

the Biotechnology Investment Incentive Tax Credit to be allowed.

Complete Part L using the information provided in the nal certicate

and enter the amount of the approved investment on line 1.

On line 2, Part L, enter 50% of the approved investment. For a QMBC

located in Allegany County, Dorchester County, Garrett County or

Somerset County, enter 75% of the approved investment.

Line 3, Part L, reects the maximum dollar amount of credit per

investment. Enter $250,000. For a QMBC located in Allegany

County, Dorchester County, Garrett County or Somerset County,

enter $500,000.

On line 4, Part L, enter the lesser of line 2 or line 3.

On line 5, Part L, enter any applicable recapture amount. See

Required Statement and Recapture of Credit.

On line 6, Part L, subtract line 5 from line 4. If the amount is less

than zero, enter a negative amount.

Enter the amount from line 6, Part L, on line 2, Part DD.

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

another separate Part L must be completed for each investment.

Total the amount from line 6, from each separate Part L. Using

only one summary section, combine the total on line 2, Part DD.

To claim the total credit, you must complete a second Part L at the

time you le your electronic 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 QMBC, for which this tax credit was certied, or, (2) the

QMBC ceases operating as an active business with its headquarters

and base of operations in Maryland, the investor must notify 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 tax 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 tax 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 tax year for which the tax credit is claimed. The amount

of recapture is entered onto line 5, Part L.

An investor’s credit also may be subject to a recapture if the

certicate is rescinded by the Maryland Department of Commerce

due to the investor failing to provide the required notice to the

Maryland Department of Commerce of having made the investment,

or if the Maryland Department of Commerce revokes the nal

certicate due to false representations made in connection with

application for the certication. The credit will also be subject

to recapture if the issued certicate is revoked by the Maryland

Department of Commerce because a company failed to satisfy the

requirements of a QMBC within 2 months. 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 distributive or pro

rata shares of the credit amount subject to the $250,000 limitation

(or $500,000 for a QMBC located in Allegany County, Dorchester

County, Garrett County or Somerset County). A PTE that earned the

Biotechnology Investment Incentive Tax Credit must electronically

le the Maryland Form 510, Form 500CR and all other required

attachments for members to be permitted to claim the credit. See

Form 510 instructions.

For a member of the PTE to be allowed the credit, the member

must complete the Form 500CR section of their electronically-

led Maryland return and include the following: copies of the nal

certication from the Maryland Department of Commerce and

statement of afdavit; and Maryland Schedule K-1 (510) 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 6 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 $100 per month for each employee.

Specic Instructions

On line 1, Part M, enter the amount of qualied commuter benets

paid on behalf of employees.

On line 2, Part M, enter 50% of the amount entered on line 1.

On line 3, Part M, enter the number of employees for which

commuter benets were paid.

On line 4, Part M, calculate the number of months covered by the

employees (employee months) listed on line 3 by $100.

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

On line 5, Part M, enter the lesser of line 2 or line 4. This is the

credit amount.

Enter the amount from line 5, Part M, to line 13, Part BB.

The amount of this credit is limited to the Maryland State income

tax on the return and is not carried forward to another tax year.

For more information contact:

Mass Transit Administration, Marketing Division

6 St. Paul St., 2nd Fl.

Baltimore, MD 21202-1614

410-767-8746

www.commuterchoicemaryland.com

PART N - CLEAN ENERGY INCENTIVE TAX CREDIT

This credit is allowed if a Maryland facility is originally placed in

service or initially began co-ring, during the period of 1/1/2006

through 12/31/2018 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.

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

Administration before claiming this credit.

Specic Instructions

On line 1, Part N, enter on the line provided the number of kilowatt

hours of electricity that was not co-red with coal. Multiply this

number by .0085. Enter the result on line 1, Part N.

On line 2, Part N, enter one-fth of the amount stated on the initial

credit certicate.

Enter the lesser of line 1 or line 2 on line 3, Part N. Also enter this

amount on line 3, Part DD.

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

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

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

be claimed.

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

Maryland Energy Administration

1800 Washington Blvd, STE 755

Baltimore, MD 21230

Note: A copy of the certification by the Maryland Energy

Administration must be included.

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.

Specic Instructions

Enter on line 1, Part O, the number of tons of Maryland-mined coal

purchased in the current year.

Multiply line 1 by $3 and enter the result on line 2, Part O, and

also on line 15, Part BB.

The credit is limited to the amount of Maryland State income tax on

the return. No carryover of excess credits exists for this tax credit.

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

of Assessments and Taxation.

For more information contact:

State Department of Assessments and Taxation

301 W. Preston Street

Baltimore, MD 21201-2395

410-767-1191

taxcredits@maryland.gov

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

Assessments and Taxation must be included.

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. 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 nonprofit

organizations that are qualied business entities against their

unrelated business taxable income.

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 Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

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 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, WITHHOLD-

ING, 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 distributive 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-I For Qualied Entities That

Are Pass-Through Entities, following Part-IV Summary.

PTE members must read the Special Instructions-II For Members

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

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.

For taxpayers that are not PTE members, enter your Maryland

taxable net income from your return on line 1.

For PTE members of a qualied business entity, enter your Maryland

taxable net income from the PTE on line 1.

On line 2, enter your share of the Maryland taxable income from the

project (“project taxable income”) of the qualied business entity.

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 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

Commerce.

Enter the non-project Maryland taxable income on line 3. This

result is determined by subtracting line 2 from line 1. If less than

0, enter 0.

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 Maryland Schedule K-1 (510) 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.

Note: If the number of employees entered on line 4a is fewer

than 10, do not continue. You are not eligible to claim the tax

credit for this year.

Enter a “Yes” or a “No” to the question on line 4b, whether the

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

positions for at least ve years. If the answer is “No” AND the

number of employees entered on line 4a is fewer 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, enter 1.000000.

A PTE will report the same numbers and information that appear

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

Maryland Schedule K-1 (510). 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.

If you are a PTE, skip Section B. Continue to Section C. All

other taxpayers complete Part B.

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 line 2, Section

A) and the State tax liability on non-project taxable income (the

amount on line 3, Section A).

Enter on line 6:

• The total tax liability from line 14 of Maryland Corporation

Form 500;

• The total tax liability from line 21 less any amounts from lines

22 though 24 of Form 502 (if you are not a PTE member

of a qualied business entity); or,

• The total tax liability from line 32c less any amounts from

lines 33 and 34 of Form 505 (if you are not a PTE member

of a qualied business entity).

If you are a PTE member of a qualied business entity, multiply the

amount on line 1, Section A, by the highest rate used to calculate

the tax on your Maryland tax return. Enter this amount on line 6.

Enter on line 7a, Section B, the State tax on the amount of income

reported on line 2, Section B. Corporations multiply this income by

8.25%. Individuals may use the highest tax rate used to calculate

tax on their individual returns if they have no other reasonable

basis for determining the tax amount.

PTE members of qualied business entities must multiply the

amount on line 2 by the highest rate used to calculate the tax on

their Maryland tax returns. Enter this amount on line 7a.

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.

Multiply the tax amount entered on line 7a by the prorate factor

on line 4d and enter the result on line 7b.

Calculate the tax on non-project income by subtracting line 7a

from line 6 and enter the result on line 8a. If the amount is less

than 0, enter 0.

Multiply the amount of tax calculated on line 8a by the prorate

factor on line 4d and enter the result on line 8b.

Section C

Note: PTE members will enter the distributive or pro rata share

of the total eligible project and start-up costs as stated on their

Maryland Schedule K-1 (510) when completing Column 2.

Project costs 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.

Enter on line 9, the total eligible project costs for the eligible

economic development project.

Enter on line 10 the lesser of the amount reported on line 9

or $5,000,000. The total eligible project costs must be at least

$500,000, and cannot exceed $5,000,000.

Start-up costs Eligible start-up 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 11, the total eligible start-up costs to establish or

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

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

Enter on line 12, the lesser of the amount reported on line 11

or $500,000. The total amount of eligible start-up costs cannot

exceed $500,000.

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

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

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 also is 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 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.

On line 15, subtract line 14 from line 10 and enter the result. If

the result is 0 or less, enter 0.

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 State income tax liability on the project taxable income.

Enter on line 16 the amount of the Maryland State income tax

liability attributable to income from the project (line 7b).

Enter on line 17, the lesser of line 15 or line 16. This amount 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).

On line 19, subtract line 18 from line 12 and enter the result. If

the result is 0 or less, enter 0.

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.

On line 20, enter the lesser of line 13 or line 19. 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).

On line 21, subtract line 17 from line 6 and enter the result. If the

result is 0 or less, enter 0.

On line 22, enter the lesser of line 20 or line 21.

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

the qualied business entity’s Maryland State income 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 income 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 but before the

expiration of the 15th tax year after the project was placed in

service or the business locates to a qualied distressed county, 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.

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 (line 17, Part

P-II) claimed for this tax year from the remaining available project

credit amount (line 15, Part P-II).

Subtract line 17, Part P-II, from line 15, Part P-II, and enter result

on line 23, Part P-III. If the result is 0 or less, enter 0.

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 income tax liability.

This section is used to calculate the portion of the nonrefundable

tax credit that is allowed against the State income tax on non-

project taxable income during the refundable tax years of the One

Maryland Economic Development Tax Credit.

On line 24, re-enter the amount of the tax on non-project income

that you had previously entered on line 8b, Part P-I.

Subtract line 17 and line 22 from line 6 and enter the result on line

25, Part P-III. If the result is 0 or less, enter 0. This is the amount

of tax available for application of the tax credit.

On line 26, calculate the credit against non-project income by

entering the lesser of lines 23, 24, or 25.

Enter the tentative refund amount on line 27, Part P-III. This

amount is calculated by subtracting line 26 from line 23. If the

result is 0 or less, enter 0.

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

excess project credit amount exceeds the State income 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).

On line 28, Part P-III, re-enter the amount of Maryland income tax

required to be withheld from the qualied employees. This is the

amount that you entered on line 5, Part P-I.

On line 29, enter the refund from project costs allowable this year.

Calculate this amount by subtracting line 26 from line 28 (if less

than 0, you will use 0) and enter that result or line 27, whichever

is less.

Section B - Start-up Costs

The refundable portion of the startup credit is calculated after the

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

nonrefundable portion of this credit is claimed.

Subtract line 22 from line 20 and enter the result on line 30, Part

P-III. If the result is 0 or less, enter 0. This is the tentative refund

amount for start-up costs.

On line 31, Part P-III, re-enter the amount of Maryland income tax

required to be withheld from the qualied employees. This is the

amount that you entered on line 5, Part P-I.

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).

Enter the refund from start-up costs allowable this year. Calculate

this amount by entering the lesser of line 30 or line 31.

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, Part BB. 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, Part DD.

Note: A copy of the nal credit certication from the Maryland

Department of Commerce must be included.

SPECIAL INSTRUCTIONS-I 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 complete the Form 500CR

section of the electronic 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 fewer than 25 employees, a PTE

must state whether or not the qualied business entity had 25

lled qualied positions for at least ve years from the time

they have been eligible for the credit;

6. The tax year the project was put 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

distributive or pro rata portion of these items must be furnished

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

Schedule K-1 (510). The PTE also must 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-II FOR MEMBERS OF QUALIFIED

BUSINESS ENTITIES THAT ARE PASS-THROUGH ENTITIES

Based on the Maryland Schedule K-1 (510), a member then may

le the applicable Maryland income tax return, completing the Form

500CR section of their electronic Maryland income tax return, 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 only complete

Column 2.

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

must limit the amounts claimed for the project credit and start-up

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

income as reported on Maryland Schedule K-1 (510).

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 then will enter on line 7a 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 0, enter 0. Line 8a also is further prorated by the factor

on line 4b, to arrive at line 8b.

All amounts (except for line 13) entered in Section C of Part P-I,

should reect the PTE member’s share of items as reported on the

Maryland Schedule K-1 (510).

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 include a copy of the PTE’s nal credit

certication to claim the credit.

PART Q – OYSTER SHELL RECYCLING TAX CREDIT

An individual or corporation may claim a credit against the State

income tax in an amount equal to $5 for each bushel of oyster

shells recycled during the tax year. The credit may not exceed

$750 per taxpayer.

Any unused credit amount for the tax year may not be carried

forward to any other tax year.

To claim the credit, an individual or corporation must submit

certication from the Maryland Department of Natural Resources,

which veries the amount of oyster shells recycled during the year.

This credit is claimed on line 1, Part Q, and also is entered on line

17, Part BB, Business Tax Credit Summary.

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

after January 1, 2018.

For additional information, contact:

Maryland Department of Natural Resources

Tawes State Ofce Building

580 Taylor Avenue

Annapolis, MD 21401

410-260-8300

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 per taxpayer.

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

Any unused credit amount for the tax year may not be carried

forward to any other tax year.

To claim the credit, an individual or corporation shall apply to 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. This credit is claimed on line 1, Part R, and also

is entered on line 18, Part BB, Business Income Tax Summary.

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

after January 1, 2018.

For additional information, contact:

Maryland Energy Administration

1800 Washington Blvd

Suite 755

Baltimore, MD 21230

410-537-4059

chris.clark1@maryland.gov

Note: A copy of the certification by the Maryland Energy

Administration must be included.

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 tax year. By September

15 of the calendar year following the end of the tax year in which

the expenses were paid or incurred, an individual or corporation

may apply to the Maryland Department of Commerce for the

credit allowed. By December 15 of the same calendar year, the

Maryland Department of Commerce will certify the amount of the

tax credit approved. The total amount of credits approved by the

Maryland Department of Commerce for any tax year may not

exceed $250,000.

To claim the approved credit, an individual or corporation must

le an electronic amended income tax return for the tax year in

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

The amount of the approved credit is entered onto line 1, Part S,

and on line 19, Part BB, Business Tax Credit Summary. Also, this

amount is an addition modication on the tax return.

The individual or corporation must include a copy of the Maryland

Department of Commerce 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 tax

years until the earlier of the full amount of the excess is used, or

the expiration of the 15th tax year after the tax year in which the

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

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

after January 1, 2017.

For more information, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

PART T – WINERIES AND VINEYARDS TAX CREDIT

Businesses may claim a credit against the State income tax for

qualied capital expenses made in connection with the establishment

of new wineries or vineyards, or the capital improvements made

to existing wineries or vineyards in Maryland.

The business may apply for tax credit in an amount equal to

but not more than 25% of incurred costs. The total amount of

credits awarded to each business depends on the amount of

eligible expenses and costs incurred with a limit of $500,000 for

all businesses that apply. If the total amount of credits applied for

exceeds $500,000 in a year, the credit will be prorated among the

certied applicants.

“Qualied Capital Expenses” are all expenditures made by the

business for the purchase and installation of equipment or

agricultural materials for use in the production of agricultural

products at a vineyard or in a winery. A list of a number of expenses

that may be considered is available on the Maryland Department

of Commerce’s Web site at commerce.maryland.gov.

Utilities, labor costs, service costs, repair costs, maintenance costs,

construction costs, and general supplies are NOT eligible expenses.

A business must be certied as a qualied business entity that

is eligible for the tax credit. Applications for certication are

available from the Maryland Department of Commerce Web site.

The business must submit an application, report of expenses and

supporting documents to the Maryland Department of Commerce by

September 15 of the calendar year following the end of the tax year

in which the expenses were incurred. The Maryland Department of

Commerce will review the application package and will certify the

amount of tax credit the taxpayer may claim by December 15th

of the same year.

The business must le an electronic amended tax return with the

Comptroller of Maryland for the year in which the expenses were

incurred and include the certication from the Maryland Department

of Commerce.

This credit is claimed on line 1, Part T, and also is entered on line

20, Part BB, Business Tax Credit Summary.

If the Wineries and Vineyards Tax Credits exceed the State income

tax imposed for that year, the credits may be carried forward for

15 years.

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

after July 1, 2018.

For additional information, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4041

PART U - FILM PRODUCTION ACTIVITY 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 Maryland Department of Commerce.

If the tax credit allowed exceeds the total tax otherwise payable by

the qualied lm production entity for that tax 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 the Maryland

Department of Commerce for an initial credit certicate for the

estimated production costs. To qualify as a lm production entity,

the estimated total direct costs incurred in Maryland must exceed

$500,000. The credit claimed cannot exceed the amount stated in

the nal certicate.

Enter on line 1, Part U, the amount of tax credit certied by the

Maryland Department of Commerce. This amount is also entered

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

on line 5, Part DD.

For additional information, contact:

Catherine Batavick, Deputy Director

Maryland Film Ofce

Maryland Department of Commerce

401 E. Pratt St., 14th Floor

Baltimore, MD 21202

410-767-6342

catherine.batavick@maryland.gov

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

Commerce must be included.

PART V - ENDOW MARYLAND TAX CREDIT

A taxpayer who makes a donation to a qualied permanent

endowment fund at an eligible community foundation may be

eligible for a credit against the Maryland State income tax. The

taxpayer must apply to the Maryland Department of Housing

and Community Development (DHCD) for a certication for the

donation. This certication must be attached to the Form 500CR

at the time the Maryland income tax return is led.

Individuals who are eligible to claim the Endow Maryland Tax

Credit, and who are not PTE members may elect to claim this credit

on Part I of Form 502CR, instead of claiming the credit on Form

500CR. However, an individual may not claim this credit on both

Form 500CR and Form 502CR. PTE members who are eligible for

this credit must claim the credit on Business Income Tax Credit

Form 500CR.

Individuals who anticipate having a carryover of the Endow

Maryland Tax Credit are advised to use Form 500CR instead of

Form 502CR. Individuals who have an existing carryover on Part

Z of their 2016 Form 500CR may elect to use Form 502CR, if their

excess carryover credit is attributable only to the Endow Maryland

Tax Credit.

The credit is limited to 25% of the approved donation (in cash or

publicly traded securities) not to exceed $50,000.

Note: A copy of the required approval from the DHCD must be

included with Form 500CR.

SPECIFIC INSTRUCTIONS

Line 1 - Enter the amount of approved donation to a qualied

permanent endowment fund.

Line 2 - Enter 25% of line 1.

Line 3 - Enter the amount from line 2 or $50,000, whichever is

less. Also, enter this amount on line 22 of Part BB

This credit is not refundable and is applied only against the Maryland

State income tax. To the extent the credit is earned in any year

and it exceeds the State income tax, you are entitled to an excess

carryover of the credit until it is used, or it expires ve years after

the credit was earned, whichever comes rst.

Note: The amount of donation shown on line 1 requires an addition

to income. See Instruction 12 in the Resident Instruction Booklet.

For more information contact:

Department of Housing and Community Development

Division of Neighborhood Revitalization

2 N. Charles St., Suite 450

Baltimore, MD 21202

410-209-5800

endowmaryland.nr@maryland.gov

PART W - AEROSPACE, ELECTRONICS, OR DEFENSE

CONTRACT TAX CREDIT

General Requirements Businesses or individuals who operate

an Aerospace, Electronics, or Defense Contract Tax Credit Project

may be eligible for an income tax credit. The income tax credit is

based on the number of qualied positions created or retained for an

Aerospace, Electronics, or Defense Contract Tax Credit Project. The

maximum credit amount is $2,500,000 per Aerospace, Electronics,

or Defense Contract Tax Credit Project.

To qualify for the tax credit, the individual or business must be a

qualied business entity. A qualied business entity is an individual

or business conducting or operating a for-prot trade or business

in Maryland that is certied by the Maryland Department of

Commerce as qualifying for the income tax credit. A government

entity does not qualify for the Aerospace, Electronics, or Defense

Contract Tax Credit.

A business entity operating a project must create or retain at

least 10,000 qualied positions in Maryland and submit a budget

evidencing the business entity will expend at least $25,000,000 in

qualifying expenditures in Maryland during the credit year for the

project to be certied by the Maryland Department of Commerce as

an Aerospace, Electronics, or Defense Contract Tax Credit Project.

A qualied business entity may receive up to three designations

for Aerospace, Electronics, or Defense Contract Tax Credit Projects

in a scal year.

A qualied position is a full-time position of indenite duration with

an annual salary of at least $85,000, including associated benets,

is located in Maryland, is created or retained as a result of the

Aerospace, Electronics, or Defense Contract Tax Credit Project of the

qualied business entity and is lled. A qualied position does not

include a position that is lled for a period of less than 12 months.

Qualied expenditures are capital expenditures that have been

expended or will be expended by a qualied business entity and

that the Maryland Department of Commerce determines have met

the requirements for an Aerospace, Electronics, or Defense Contract

Tax Credit Project.

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438

Claiming the Tax Credit

Line 1 - Enter the number of qualied employees employed during

the credit year.

Line 2 - Multiply line 1 by $250 and enter the result on line 2.

Line 3 – This line reects the maximum dollar amount per project

($2,500,000) and no entry is made on this line.

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

Line 5 – Enter any applicable recapture amount. See information

about recapture amounts.

Line 6 – Subtract line 5 from line 4. If the amount is less than

zero, enter a negative amount.

Enter the amount from line 6, Part W on line 8, Part DD.

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

another separate Part W must be completed for each investment.

Total the amounts from line 6 from each separate Part W. Using

only one summary section, combine the totals on line 8, Part DD.

To claim the total credit, you must complete a second Part W at

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

the time you electronically le your income tax return.

Recapture of Credit The credit must be recaptured if, during

either of the 2 years after the credit year, the number of qualied

positions of the qualied business entity falls below a rolling

average over the past 2 years of 10,000. If the credit is required

to be recaptured, the credit is recomputed and reduced on a

proportionate basis, based on the reduction of the rolling average

number of qualified employees over the past 2 years. The

recomputed credit is then subtracted from the amount of credit

previously allowed. If, during any of the 2 years after the credit

year, the rolling average of qualied positions falls below 9,000 for

the past 2 years, all credits shall be recaptured.

PART X - PRESERVATION AND CONSERVATION EASEMENTS

TAX CREDIT

Individuals or members of a Pass-Through Entity (PTE) may be

eligible for a credit for an easement conveyed to the Maryland

Environmental Trust, the Maryland Agricultural Land Preservation

Foundation, or the Maryland Department of Natural Resources

to preserve open space, natural resources, agriculture, forest

land, watersheds, signicant ecosystems, viewsheds or historic

properties if:

1. The easement is perpetual;

2. The easement is accepted and approved by the Board of

Public Works; and

3. The fair market value of the property before and after the

conveyance of the easement is substantiated by a certied

real estate appraiser.

Individuals who are eligible to claim the Credit for Preservation

and Conservation Easements and who are not PTE members must

claim this credit on Part F of the Form 502CR. PTE members who

are eligible for this credit must claim the credit on Business Income

Tax Credit Form 500CR. PTE members who are duciaries should

see the Form 504CR for instructions on claiming this credit.

The credit is equal to the difference in the fair market values of the

property reduced by payments received for the easement. The

credit amount is limited to the lesser of the State tax liability for

the taxable year or the maximum allowable credit of $5,000. The

sum of all credits claimed by members of a PTE in a taxable year

may not exceed $5,000.

If the allowable credit amount of a PTE member exceeds the

maximum of $5,000, up to $5,000 may be carried forward each

subsequent year until the allowable credit is used up or 15 years,

whichever rst occurs.

Complete lines 1-4 of Part X. For line 1, enter the amount by which

the fair market value of the property before the conveyance of the

easement exceeds the fair market value after the conveyance as

substantiated by a certied real estate appraiser.

For additional information, contact the Maryland Environmental

Trust at 410-514-7900, www.dnr.state.md.us/met, or the

Maryland Agricultural Land Preservation Foundation at 410-841-

5860 or the Department of Natural Resources at 410-260-8367.

Note: A copy of the approval and acceptance of the conveyance

by the Board of Public Works must be included. Provide a copy of

this approval with Maryland Schedules K-1 (510) and/or Maryland

Schedules K-1 (504) issued to PTE members.

PART Y - APPRENTICE EMPLOYEE TAX CREDIT

General Requirements Certain taxpayers may be eligible for

an income tax credit for the rst year of employment of eligible

apprentices. The income tax credit is based on the number of

eligible apprentices employed by the taxpayer.

“Eligible apprentice” means an individual who is enrolled in an

apprenticeship program registered with the Maryland Apprenticeship

and Training Council. Eligible apprentices must have been employed

by the taxpayer for at least 7 full months of the taxable year.

Specic Instructions

Line 1 - Enter the number of eligible apprentices in their rst year

of employment.

Line 2 - Multiply line 1 by $1,000 and enter the result on line 2.

Enter the amount from line 2, Part Y on line 25, Part BB.

This credit is not refundable and is applied against only the Maryland

State income tax. Excess credit may be carried forward until the

excess amount is fully used. The excess credit amount is applied

against the Maryland State income tax after the application of all

other business income tax credits on the Form 500CR.

Note: A copy of the proof of enrollment for each eligible apprentice

in a registered apprenticeship program and proof of the duration

of the eligible apprentice’s employment by the taxpayer must be

included.

For more information, contact:

Maryland Department of Labor, Licensing and Regulation

1100 N. Eutaw St., Room 209

Baltimore, MD 21201

410-767-2246

PART Z - QUALIFIED FARMS TAX CREDIT

Qualied farms that make an eligible food donation may be eligible

for an income tax credit. A qualied farm that makes an eligible

food donation is eligible for a tax credit amount equal to 50% of

the value of the eligible food donation. A qualied farm that makes

a donation of certied organic produce is eligible for a tax credit

amount equal to 75% of the value of the donated certied organic

produce. Certication of the tax credit is issued by an individual or

organization authorized by the State Department of Agriculture to

receive eligible food donations from a qualied farm and to issue

the qualied farm a tax credit certicate. For any taxable year, the

aggregate amount of credits authorized for a qualied farm may

not exceed $5,000 unless the Maryland Secretary of Agriculture

increases the credit limitation for a qualied farm to an amount

not to exceed $10,000. If the allowable credit amount exceeds the

State income tax, the unused credit may be carried forward each

subsequent year until the allowable credit is used up or 5 years,

whichever rst occurs.

“Qualied farms” means a farm business that is located in Anne

Arundel County, Calvert County, Charles County, Montgomery

County, Prince George’s County, or St. Mary’s County.

“Eligible food donation” means fresh farm products for human

consumption. “Certied organic produce” means an eligible food

donation certied under Title 10, Subtitle 14 of the Agriculture

Article as an organically produced commodity.

The credit is claimed on Part Z, line 1, and is also entered on the

Business Tax Credit Summary, Part BB, line 26.

For questions on application and certication processes or for

additional information on this credit program, contact:

NEW

17-49

Maryland Department of Agriculture

50 Harry S. Truman Parkway

Annapolis, Maryland 21401

410-841-5862

mda.maryland.gov/vetboard

Note: A copy of all certicates issued by a Tax Credit Certicate

Administrator must be included with Form 500CR.

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

January 1, 2020.

PART AA - QUALIFIED VETERAN EMPLOYEES TAX

CREDIT

A credit may be claimed by a small business for each qualied

veteran employee hired. The credit for each qualied veteran

employee may not exceed 30% of up to the rst $6,000 of wages

paid to the qualied veteran employee during the rst year of

employment. A small business qualifying for this tax credit is

required to apply to the Maryland Department of Commerce for

a tax credit certicate. A copy of the Maryland Department of

Commerce certication must be included with the tax return of

the small business to claim this tax credit.

“Qualied veteran employee” means an individual who:

(1) Is honorably discharged or released under honorable

circumstances from active military, naval, or air service as

dened in 38 U.S.C. § 101; and

(2) Is a qualied veteran as dened under 26 U.S.C. § 51(d) (3)

(a) for purposes of the Federal Work Opportunity Tax Credit.

“Small business” means an individual, a partnership, a limited

partnership, a limited liability partnership, a limited liability

company, or a corporation that employs 50 or fewer full-time

employees.

A small business may not claim the credit for more than ve

qualied veteran employees in a taxable year. A small business

may not claim a credit for a qualied veteran employee who is hired

to replace a laid-off employee or an employee who is on strike.

The credit is claimed on Part AA, line 1 and is also entered on

Business Tax Credit Summary, Part BB, line 27.

Any unused credit amount for the tax year may not be carried

forward to any other taxable year.

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-737-4041

Note: A copy of the tax credit certication from the Maryland

Department of Commerce must be included with Form 500CR.

PART BB - BUSINESS TAX CREDIT SUMMARY

This part is used to summarize all available nonrefundable tax

credits reported on this form. If the total credits available in a

particular tax year exceed the State income tax developed for that

year, the excess may not be refunded.

Taxpayers will enter their respective current year credits in lines 1

through 27 of Part BB, with the following exceptions:

• No entry is to be made on lines 2, 8, 12, 14, 21 and 23

because the credits to which they relate are refundable credits

and will be claimed on Part DD.

Enter on line 28, the total of the credits listed on lines 1 through 27.

Enter on line 29 the carryover of excess credits unable to be used

on last year’s return. This amount comes from line 7, Part Z, from

2016 Form 500CR.

Add lines 28 and 29 and enter the result on line 30. This is the

tentative tax credit.

On line 31, enter the amount of recaptured tax credits (See

instructions for Parts D and F).

Subtract line 31 from line 30 and enter the result on line 32.

On line 33, Part BB, enter the State income tax from your return.

Corporations will enter line 14 of Form 500 on line 33, Part BB.

Individuals will enter line 21 less amounts from lines 22 through

24 from Form 502 on line 33, Part BB, or line 32c less any amounts

from lines 33 and 34 from Form 505.

On line 34, enter the lesser of line 32 or 33.

An addition to income is required for credits from Parts A, C, J-I,

K-I, K-II, S and V. These additions are comprised of lines 1, 3,

10a, 11 and 19 from Part BB; and line 1 from Part V; and line 6

from Part DD. The totals of these amounts are included on line 7f

of Form 500, line 5 of Form 502, and line 19 of Form 505. Pass-

through entities will report the distributive or pro rata share of any

of these items as additions on the Maryland Schedule K-1 (510)

issued to members.

PART CC - 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, we have provided a table with the number

of years for which each credit may be carried forward.

PART DD - REFUNDABLE BUSINESS INCOME TAX CREDITS

Part DD is used to report the refundable portion of business income

tax credits:

On line 1, enter the One Maryland Economic Development Tax

Credit from line 38, Part P-IV.

On line 2, enter the Biotechnology Investment Incentive Tax Credit

from line 6, Part L.

On line 3, enter the Clean Energy Incentive Tax Credit from line

3, Part N.

On line 4, enter the Health Enterprise Zone Hiring Tax Credit from

line 6, Part B.

On line 5, enter the Film Production Activity Tax Credit from line

1, Part U.

On line 6, enter the Small Business Research and Development Tax

Credit from line 6, Part K-II.

On line 7, enter the Cybersecurity Investment Incentive Tax Credit

from line 6, Part H.

On line 8, enter the Aerospace, Electronics, or Defense Contract

Tax Credit from line 6, Part W.

On line 9, enter the total of all of the business income tax credits

from lines 1 through 8.

If you are ling Form 502 or Form 505, enter this amount on line

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

NEW

17-49

9 and on Part M, line 3 of Form 502CR.

If line 9 is less than 0, enter the result on the appropriate return

as a negative number.

If you are ling Form 500 or Form 510, continue to Part EE.

PART EE – CORPORATION AND PASS-THROUGH ENTITY

(PTE) REFUNDABLE TAX CREDIT SUMMARY

Part EE is used by corporations and PTEs to summarize the re-

fundable portion of business income tax credits.

On line 1, enter the amount from Line 6 of Maryland Form 502S

- Heritage Structure Rehabilitation Tax Credit.

On line 2, enter the refundable business income tax credits from

Part DD, line 9. If this number is less than 0, enter as a nega-

tive number.

Add lines 1 and 2 and enter the amount on line 3. If this number

is less than 0, enter as a negative number. This is the total

refundable business income tax credit. If you are ling Maryland

Form 500, enter this amount on Form 500, line 15d.

Note: If you are ling Form 510, you will not report the total

amount from line 9 to your members.

A PTE will report on Maryland Schedule K-1 (510) the distribu-

tive or pro rata share of each tax credit to its members.

Reminder: One Maryland Economic Development Tax Credit

requires additional entries on Maryland Schedule K-1 (510).

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

17-49

Part Credit

carry-

over

years

Until

Fully

Used

A Enterprise Zone Tax Credit X

B Health Enterprise Zone Hiring Tax Credit X

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 Qualied Vehicle Tax Credit X

H Cybersecurity Investment Incentive Tax Credit X

I Employer-Provided Long-Term Care Insurance Tax

Credit

J-I Maryland Employer Security Clearance Costs Tax

Credit

J-II First-Year Leasing Costs Tax Credit for Qualied Small

Businesses

K-I Research and Development Tax Credit* X

K-II Research and Development Tax Credits for Businesses

Certied as a “Small Business”

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 Oyster Shell Recycling Tax Credit X

R Bio-Heating Oil Tax Credit X

S Cellulosic Ethanol Technology Research & Develop-

ment Tax Credit

T Wineries and Vineyards Tax Credit X

U Film Production Activity Tax Credit X

V Endow Maryland Tax Credit X

W Aerospace, Electronics, or Defense Contract Tax Credit X

X Preservation and Conservation Easements Tax Credit X

Y Apprentice Employee Tax Credit X

Z Qualied Farms Tax Credit X

AA Qualied Veteran Employees 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.

** The 14-year carryover for the One Maryland Economic Development Tax Credit is calculated within Part P by total credit avail-

able and subtracting prior year credits from the total. An eligible taxpayer has 14 years to use the project and start-up costs as

credits. Therefore, the Excess Credit Carryover calculation is not used to calculate an additional carryover.

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

2017

MARYLAND

FORM

500CR

Expired Tax Credits

The following credits have expired, but are eligible for the following carryover periods to the extent that the credit exceeds the tax.

Part Credit

carry-

over

years

Until

Fully

Used

Green Building Tax Credit X

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

Credit

Work-Based Learning Tax Credit X

Download
Save PDF to desktop

Email
Email completed PDF

Send for Signing
Email for others to sign

Print
Print document

NAME

Form 2017: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland)

View Audit Log
Print With Audit Log
Duplicate Document

Fill Online, Printable, Fillable, Blank Form 2017: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland) Form

Related forms

Fillable Form 2017: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland)

Fill Online, Printable, Fillable, Blank Form 2017: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland) Form

Related forms

First 20 documents completely FREE!