BUSINESS INCOME TAX
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additional information on this credit program, contact:
Maryland Department of Commerce
401 E. Pratt St.
Baltimore, MD 21202
410-767-2368 or 410-767-6438
The investor may claim the tax credit for the amount provided
then a refund for the excess amount may be claimed. The credit
It must be claimed on the Maryland income tax return for the tax
year in which the investor makes the investment in the QMBC.
by the investor are required to be included with your return for
the Biotechnology Investment Incentive Tax Credit to be allowed.
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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.
investment. Enter $250,000. For a QMBC located in Allegany
County, Dorchester County, Garrett County or Somerset County,
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 CCC.
1RWH 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 CCC.
To claim the total credit, you must complete a second Part L at
Required Statement and Recapture of Credit The statement
name of the investor, signature of the investor under penalties of
perjury (or its authorized representative), and date.
after the close of the tax year for which the credit is claimed, (1)
the investor sells, transfers or disposes of the ownership interest
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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
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
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
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.
3DVVWKURXJK HQWLWLHV 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
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-
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the allocated share of credit amount.
PART M - COMMUTER TAX CREDIT
A credit is allowed for businesses that conduct or operate a trade
The business must pay a portion of the cost of travel between the
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
in a vanpool. The vanpool vehicle must seat at least 6 adults and
be used primarily to transport employees between home and the
The credit is the lesser of 50% of the cost of providing commuter
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
On line 4, Part M, calculate the number of months covered by the
employees (employee months) listed on line 3 by $100.
On line 5, Part M, enter the lesser of line 2 or line 4. This is the