Fillable Form 2018: 500CR BUSINESS INCOME TAX CREDITS INSTRUCTIONS (Comptroller of Maryland)

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Form 2018: 500CR BUSINESS INCOME TAX CREDITS INSTRUCTIONS (Comptroller of Maryland)

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MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
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. 7KHVH TXDOL¿HG RUJDQL]DWLRQV QR ORQJHU ZLOO XVH )RUP
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.
NON- REFUNDABLE TAX CREDITS
Enterprise Zone Tax Credit**
Maryland Disability Employment Tax Credit**
Job Creation Tax Credit**
Community Investment Tax Credit**
Businesses That Create New Jobs Tax Credit
4XDOL¿HG9HKLFOH7D[&UHGLW
Cybersecurity Incentive Tax Credit for Buyers of
Cybersecurity Technology or Cybersecurity Services**
Employer-Provided Long-Term Care Insurance Tax Credit
Maryland Employer Security Clearance Costs Tax
Credit**
)LUVW<HDU/HDVLQJ&RVWV7D[&UHGLWIRU4XDOL¿HG6PDOO
Businesses**
Research and Development Tax Credits for Businesses
1RW&HUWL¿HGDVD³6PDOO%XVLQHVV´
Commuter Tax Credit
Maryland-Mined Coal Tax Credit**
Non-Refundable One Maryland Economic Development
Tax Credit**
Oyster Shell Recycling Tax Credit**
Energy Storage Systems Tax Credit**
:LQHULHVDQG9LQH\DUGV7D[&UHGLW
Endow Maryland Tax Credit**
Preservation and Conservation Easements Tax Credit**
Apprentice Employee Tax Credit**
4XDOL¿HG)DUPV7D[&UHGLW
4XDOL¿HG9HWHUDQ(PSOR\HHV7D[&UHGLW
REFUNDABLE TAX CREDITS
Small Business Relief Tax Credit**
Cybersecurity Incentive Tax Credit for Investors in
Cybersecurity**
Research and Development Tax Credits for Businesses
&HUWL¿HGDVD³6PDOO%XVLQHVV´
Biotechnology Investment Incentive Tax Credit**
Clean Energy Incentive Tax Credit**
Refundable One Maryland Economic Development Tax
Credit**
Part
A
C
D
E
F
G
H-II
I
J-I
J-II
K-I
M
O
P
Q
R
T
9
X
Y
Z
AA
Part
B
H-I
K-II
L
N
P
More Jobs for Marylanders Tax Credit **
Film Production Activity Tax Credit**
Aerospace, Electronics, or Defense Contract Tax Credit
**
S
U
W
Heritage Structure Rehabilitation Tax Credit from Form DDD
502S
5HTXLUHG&HUWL¿FDWLRQPXVWEHLQFOXGHGZLWK)RUP&5
3DVVWKURXJK HQWLWLHV 37(V If the business is a PTE, an
HOHFWURQLF)RUPPXVWEH¿OHGDQGWKH)RUP&5VHFWLRQ
must be completed through line 28, Part AAA, 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
PHPEHURUEHQH¿FLDU\ZLWKDVWDWHPHQWVKRZLQJWKHLUVKDUHRI
each credit in Parts AAA, CCC and DDD. 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
RI3DUW'''5HTXLUHGFHUWL¿FDWLRQPXVWEHLQFOXGHG
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.
37(PHPEHU$Q\FUHGLWIURPD37(¿OLQJD¿VFDO\HDUUHWXUQLV
considered to be received by the member(s) on the last day of
WKH37(¶V¿VFDO\HDU7KH37(PHPEHUVKRXOGFODLPWKHFUHGLWRQ
WKHPHPEHUVWD[UHWXUQIRUWKHVDPH\HDUDVWKH37(¶V¿VFDO\HDU
HQG(YHQWKRXJKWKH .OLVWLQJWKH FUHGLW PD\ UHÀHFW WKHWD[
\HDUIRUWKHEHJLQQLQJRIWKH¿VFDO\HDUWKHFUHGLWLVVWLOOFODLPHG
LQWKH\HDULQZKLFKWKH37(¶V¿VFDO\HDUHQGV
6SHFLDO 1RWH IRU 37( 0HPEHUV If you are a PTE member
receiving a distributive or pro rata share of credits, the required
FHUWL¿FDWLRQZLOOKDYHDGLIIHUHQW7D[SD\HU,GHQWL¿FDWLRQ1XPEHU
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
37(¶V)HGHUDO(PSOR\HU,GHQWL¿FDWLRQ1XPEHU )(,1WRHQVXUH\RXU
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.
1RWH6RPHVWDWHDJHQFLHVZLOORQO\SURYLGHFHUWL¿FDWLRQWRWKH
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.
([FHSWLRQ 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
EHFDUULHGRYHUWRWKHDSSURSULDWH¿HOGVLQWKH 6XPPDU\3DUWV
AAA, BBB or CCC. In addition, PTE members that are corporations
or PTEs should complete Part DDD.
&UHGLWVFODLPHGE\ERWKVSRXVHVRQDMRLQWUHWXUQOnly one
Form 500CR is completed, which will combine the amounts for
both spouses.
2WKHU ,QIRUPDWLRQ If a FEIN is to be used and has not been
VHFXUHGHQWHU³$33/,(')25´IROORZHGE\WKHGDWHRIDSSOLFDWLRQ
If you have not applied for a FEIN, do so immediately.
Amended Returns <RXZLOOQHHGWR¿OHDQHOHFWURQLF0DU\ODQG
amended return to make changes affecting Form 500CR.
18-49
1
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
PART A - ENTERPRISE ZONE TAX CREDIT CREDIT
General Requirements Businesses located in an enterprise
zone may be eligible for tax credits based upon wages paid to
qualifying employees. )RUWKHSXUSRVHRIFODLPLQJWKHFUHGLW
Enterprise zones include Regional Institution Strategic
(QWHUSULVH 5,6(]RQHVDVGH¿QHGLQ6HFWLRQHRI
WKH(FRQRPLF'HYHORSPHQW$UWLFOH For businesses located in
a focus area (an area within an enterprise zone that is especially
in need) the credit amounts are higher.
Businesses that own, operate, develop, construct or rehabilitate
property intended for use primarily as single or multi-family
residential property are not eligible for the enterprise zone tax
credit.
Qualifying employees are those employees who:
1. Are new employees or employees rehired after being laid
off for more than one year;
2. Were employed at least 35 hours per week by the business
for at least six months before or during the business entity’s
tax year for which a credit is claimed;
3. Spent at least one-half of their working hours in the
enterprise zone on activities of the business resulting
directly from its location in the enterprise zone;
4. Earn 150% or more of the federal minimum wage; and
5. Were hired by the business after the later of the date on
which the enterprise zone was designated or the date on
which the business entity located in the enterprise zone.
In addition, an employee may not have been hired to replace an
individual employed by the business in that or the three previous
tax years except an economically disadvantaged employee hired
WR UHSODFH D SUHYLRXVO\ TXDOL¿HG HFRQRPLFDOO\ GLVDGYDQWDJHG
employee, for whom the business received the corresponding
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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
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438 or 410-767-4041
(FRQRPLFDOO\GLVDGYDQWDJHGHPSOR\HHVDUHWKRVHZKRDUHFHUWL¿HG
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.
6SHFL¿F5HTXLUHPHQWV
Complete Parts A-I and A-II if the business is located in an
enterprise zone but not in a focus area.
&RPSOHWH3DUWV$,,,DQG$,9LIWKHEXVLQHVVLVORFDWHGLQDIRFXV
area.
3$57$,&UHGLWIRUHFRQRPLFDOO\GLVDGYDQWDJHGHPSOR\HHV
QRWORFDWHGLQDIRFXVDUHD A credit is allowed for each new
economically disadvantaged employee for a three-year period
EHJLQQLQJZLWKWKH\HDUWKHHPSOR\HHZDVTXDOL¿HG7KHFUHGLWVDUH
limited to the following amounts of wages paid to the economically
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second year and $1,000 in the third year. If the employee replaced
DSUHYLRXVO\TXDOL¿HGHFRQRPLFDOO\GLVDGYDQWDJHGHPSOR\HHWKH
credit for the new employee will be the same as would have been
allowed for the replaced employee.
On line 1, Part A-I, enter the number of economically disadvantaged
TXDOL¿HGHPSOR\HHVQRWORFDWHGLQDIRFXVDUHDLQWKHLU¿UVW\HDU
RIHPSOR\PHQWRQWKH³)LUVW<HDU´OLQH$OVRHQWHUWKHQXPEHU
RIWKHVHTXDOL¿HGHPSOR\HHVRQWKHLUUHVSHFWLYHVHFRQGDQGWKLUG
year lines.
On line 2, Part A-I, enter the credit equal to the wages paid to each
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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.
3$57$,,&UHGLWIRURWKHUTXDOL¿HGHPSOR\HHVQRWORFDWHG
LQ D IRFXV DUHD A credit is allowed for each new TXDOL¿HG
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 IRURQO\
WKH¿UVW\HDUWKHHPSOR\HHZDVTXDOL¿HG
2Q OLQH  3DUW $,, HQWHU WKH QXPEHU RI ¿UVW\HDU TXDOL¿HG
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.
3$57 $,,,  &UHGLW IRU HFRQRPLFDOO\ GLVDGYDQWDJHG
HPSOR\HHVORFDWHGLQDIRFXVDUHDA credit is allowed for each
new economically disadvantaged employee for a three-year period
EHJLQQLQJZLWKWKH¿UVW\HDUWKHHPSOR\HHZDVTXDOL¿HG
The credits are limited to the following amounts of wages paid
to the same economically disadvantaged employee: $4,500 in
WKH¿UVW\HDULQWKHVHFRQG\HDUDQGLQWKHWKLUG
\HDU,IWKHHPSOR\HHUHSODFHGDSUHYLRXVO\TXDOL¿HGHFRQRPLFDOO\
disadvantaged employee, the credit for the new employee will be
the same as would have been allowed for the replaced employee.
On line 8, Part A-III, enter the number of economically
GLVDGYDQWDJHGTXDOL¿HGHPSOR\HHVORFDWHGLQDIRFXVDUHDLQWKHLU
¿UVW\HDURIHPSOR\PHQWRQWKH³)LUVW<HDU´OLQH$OVRHQWHUWKH
QXPEHURIWKHVHTXDOL¿HGHPSOR\HHVRQWKHLUUHVSHFWLYHVHFRQG
and third year lines.
On line 9, Part A-III, enter the credit equal to the wages paid to
HDFK¿UVW\HDUHPSOR\HHXSWRDPD[LPXPRISHUHPSOR\HH
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.
3$57$,9&UHGLWIRURWKHUTXDOL¿HGHPSOR\HHVORFDWHGLQ
DIRFXVDUHD$FUHGLWLVDOORZHGIRUHDFKQHZTXDOL¿HGHPSOR\HH
located in a focus area not provided in Part A-III. The credit is limited
WRRIZDJHVSDLGDQGLVDSSOLFDEOHIRURQO\WKH¿UVW\HDUWKH
HPSOR\HHZDVTXDOL¿HG
2Q OLQH  3DUW $,9 HQWHU WKH QXPEHU RI ¿UVW\HDU TXDOL¿HG
employees located in a focus area who were not claimed in Part A-III.
2Q OLQH  3DUW $,9 HQWHU WKH DPRXQW RI ZDJHV IRU WKHVH
employees up to a maximum of $1,500 per employee.
3$57$6XPPDU\
Check the box if you are claiming a credit for a business located
18-49
2
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
LQD5,6(]RQHDVGH¿QHGLQ6HFWLRQHRIWKH(FRQRPLF
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
PRGL¿FDWLRQ:KHQHYHUDQ(QWHUSULVH=RQH7D[&UHGLWLVFODLPHG
DQDGGLWLRQPRGL¿FDWLRQPXVWEHPDGHLQWKHDPRXQWRIWKHFUHGLW
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
H[SLUDWLRQRI¿YH\HDUVZKLFKHYHUFRPHV¿UVW
%XVLQHVVPXVWLQFOXGHFHUWL¿FDWLRQZLWKWKHUHWXUQZKLFKVKRZV
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 FRPPHUFHPDU\ODQGJRYto see the list of
Maryland Enterprise Zones by Region.
PART B – SMALL BUSINESS RELIEF TAX
An individual or a small business that pays earned sick and safe
OHDYHWRDTXDOL¿HGHPSOR\HHPD\EHHQWLWOHGWRFODLPWKHFUHGLW
towards the State income tax for the amount granted by the
Maryland Department of Commerce. If the credit exceeds the
State income tax for that taxable year, the employer may claim a
refund. Qualifying employers must have 14 or fewer employees
and must pay earned sick and safe leave at the same wage rate
WKDWWKHTXDOL¿HGHPSOR\HHQRUPDOO\HDUQV,QDGGLWLRQHPSOR\HHV
must earn wages that are equal to or less than 250% of the annual
federal poverty guidelines for a single-person household.
For each taxable year, the credit allowed may not exceed the lesser
RI DQDPRXQWWKDWHTXDOVIRUHDFKTXDOL¿HGHPSOR\HHRU
DQDPRXQWWKDWHTXDOVWKHWRWDODPRXQWRITXDOL¿HGHPSOR\HU
EHQH¿WVDFFUXHGE\DOOTXDOL¿HGHPSOR\HHV
This credit is claimed on line 1, Part B, and also is entered on line
4, Part CCC Refundable Business Income Tax Credit Summary.
For additional information, contact:
Maryland Department of Commerce
Abigail McKnight, Tax Specialist
2I¿FHRI)LQDQFH3URJUDPV
401 E. Pratt Street 17th Floor
Baltimore, MD 21201
410-767-7234
Abigail.mcknight@maryland.gov
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
RITXDOL¿HGHPSOR\HHV
4XDOLI\LQJHPSOR\HHVZLWKDGLVDELOLW\DUHWKRVHZKRDUHFHUWL¿HG
as such by the DORS (or by the DLLR for a disabled veteran). A
FRS\RIWKH'256RU'//5FHUWL¿FDWLRQPXVWEHLQFOXGHGZLWK\RXU
tax return when claiming this tax credit.
)RUFHUWL¿FDWLRQRUIRUDGGLWLRQDOLQIRUPDWLRQFRQWDFW
Maryland State Department of Education
Division of Rehabilitation Services
2301 Argonne Drive
Baltimore, MD 21218
1-888-554-0334 or 410-554-9442
GRUVPDU\ODQGJRY
or,
Maryland Department of Labor, Licensing and Regulation
1100 N. Eutaw St., Room 201
Baltimore, MD 21201
410-767-2047
$³4XDOL¿HG(PSOR\HH´ZLWKDGLVDELOLW\PHDQVDQLQGLYLGXDOZKR
 0HHWV WKH GH¿QLWLRQ RI DQ LQGLYLGXDO ZLWK D GLVDELOLW\ DV
GH¿QHGE\WKH$PHULFDQVZLWK'LVDELOLWLHV$FW
2. Has a disability that presently constitutes an impediment
to obtaining or maintaining employment or to transitioning
from school to work; and,
3. Is ready for employment; or,
4. Is a veteran who has been discharged or released from
active duty by the American Armed Forces for a service-
connected disability.
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
WUDLQLQJEHQH¿WV
Qualifying child care expenses are those expenses incurred by
DEXVLQHVVWRHQDEOHDTXDOL¿HGHPSOR\HHZLWKDGLVDELOLW\WREH
gainfully employed.
Transportation expenses are those expenses incurred by a business
HQWLW\WRHQDEOHDTXDOL¿HGHPSOR\HHZLWKDGLVDELOLW\WRWUDYHOWR
and from work.
6SHFL¿F5HTXLUHPHQWV
3$57&,&UHGLWIRUHPSOR\HHVZLWKDGLVDELOLW\KLUHG A
credit is allowed for each new employee with a disability for a two-
\HDUSHULRGEHJLQQLQJZLWKWKH\HDUWKHHPSOR\HHZDVTXDOL¿HG
The credit for each disabled employee hired is equal to 30% of
WKH¿UVWRITXDOL¿HG¿UVW\HDUZDJHVDQGRIWKH¿UVW
RITXDOL¿HGVHFRQG\HDUZDJHV
The employer is not entitled to claim the credit until employment
has continued for at least one full year unless the employee:
D 9ROXQWDULO\OHDYHVWKHHPSOR\HU
(b) Becomes further disabled or death occurs; or,
(c) Is terminated for cause. The credit must be prorated for
the portion of the year the employee worked unless the
employee voluntarily left to take another job
2QOLQH3DUW&,HQWHUWKHQXPEHURITXDOL¿HGHPSOR\HHVLQ
WKHLU¿UVW\HDURIHPSOR\PHQWRQWKH³)LUVW<HDU´OLQH(QWHUWKH
QXPEHURITXDOL¿HGHPSOR\HHVLQWKHLUVHFRQG\HDURIHPSOR\PHQW
RQWKH³6HFRQG<HDU´OLQH
2QOLQH3DUW&,HQWHUWKHFUHGLWHTXDOWRRIWKH¿UVW
RIZDJHVSDLGWRHDFK¿UVW\HDUTXDOL¿HGHPSOR\HH
2QOLQH3DUW&,HQWHUWKHFUHGLWHTXDOWRRIWKH¿UVW
RIZDJHVSDLGWRHDFKVHFRQG\HDUTXDOL¿HGHPSOR\HH
On line 4, Part C-I, enter the sum of lines 2 and 3.
3$57 &,,  &UHGLW IRU &KLOG &DUH DQG 7UDQVSRUWDWLRQ
Expenses
An additional credit is allowed for expenses incurred by the
employer for approved day care services for a child or children
RIDTXDOL¿HGHPSOR\HHRUIRUWUDQVSRUWDWLRQH[SHQVHVWKDWDUH
18-49
3
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
LQFXUUHGWRHQDEOHDTXDOL¿HGHPSOR\HHWRWUDYHOWRDQGIURPZRUN
$FUHGLWRIXSWRLVDOORZHGIRUWKH¿UVW\HDURIHPSOR\PHQW
and up to $900 for the second year. To verify if a child care center
TXDOL¿HV DV DQ DSSURYHG SURYLGHU FRQWDFW WKH 'HSDUWPHQW RI
Human Resources, Child Care Administrator for the county or city
in which the child care center is located.
2QOLQH3DUW&,,HQWHUWKHQXPEHURITXDOL¿HGHPSOR\HHVLQ
WKHLU¿UVW\HDURIHPSOR\PHQWRQWKH³)LUVW<HDU´OLQH(QWHUWKH
QXPEHURITXDOL¿HGHPSOR\HHVLQWKHLUVHFRQG\HDURIHPSOR\PHQW
RQWKH³6HFRQG<HDU´OLQH
On line 6, Part C-II, enter the credit equal to a combined total of
LQFKLOGFDUHDQGWUDQVSRUWDWLRQH[SHQVHVSHUHDFK¿UVW\HDU
TXDOL¿HGHPSOR\HHZLWKDGLVDELOLW\
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
\HDUTXDOL¿HGHPSOR\HHZLWKDGLVDELOLW\
On line 8, Part C-II, enter the sum of lines 6 and 7.
3$57&6XPPDU\
On line 9, Part C, enter the sum of lines 4 and 8.
$OVRWKHDPRXQWRQOLQH3DUW&EHFRPHVDQDGGLWLRQPRGL¿FDWLRQ
Whenever this credit is claimed against the income tax, an addition
PRGL¿FDWLRQPXVWEHPDGHLQWKHDPRXQWRIWKHFUHGLWFODLPHG
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
H[SLUDWLRQRI¿YH\HDUVZKLFKHYHUFRPHV¿UVW
PART D - JOB CREATION TAX CREDIT
General Requirements Certain businesses that create new
TXDOL¿HGSRVLWLRQVLQ0DU\ODQGPD\EHHOLJLEOHIRUWD[FUHGLWVEDVHG
RQWKHQXPEHURITXDOL¿HGSRVLWLRQVFUHDWHG
7KHEXVLQHVVIDFLOLW\PXVWEHFHUWL¿HGDVKDYLQJFUHDWHGDWOHDVW
TXDOL¿HGSRVLWLRQVTXDOL¿HGSRVLWLRQVLIWKHEXVLQHVVIDFLOLW\
established or expanded is in a State Priority Funding Area, or 10
TXDOL¿HGSRVLWLRQVLQDFRXQW\ZLWKDQDQQXDODYHUDJHHPSOR\PHQW
that is less than 75,000 or a median household income that is
less than two-thirds of the statewide median household income.
$TXDOL¿HGSRVLWLRQLVDIXOOWLPHSRVLWLRQZKLFKSD\VDWOHDVW
of the State minimum wage, is located in Maryland, is newly created
as a result of the establishment or expansion of a business facility
LQDVLQJOHORFDWLRQLQWKHVWDWHDQGLV¿OOHG
4XDOL¿HG EXVLQHVV HQWLWLHV DUH WKRVH FHUWL¿HG DV VXFK E\ WKH
0DU\ODQG'HSDUWPHQWRI&RPPHUFH$TXDOL¿HGHPSOR\HHLVDQ
HPSOR\HH¿OOLQJDTXDOL¿HGSRVLWLRQ
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
H[SLUDWLRQ RI ¿YH \HDUV DIWHU WKH FUHGLW ZDV HDUQHG ZKLFKHYHU
FRPHV¿UVW
127()RUFUHGLWVFHUWL¿HGSULRUWR-DQXDU\HQWHU
RQOLQH3DUW'RIWKHDPRXQWRIWKHFUHGLWVIURP
WKHSULRU\HDU
Recapture Provision If, at any time during the three tax years
after the year the credit was earned, the average number of
TXDOL¿HGSRVLWLRQVIDOOVPRUHWKDQEHORZWKHDYHUDJHQXPEHU
RI TXDOL¿HG SRVLWLRQV GXULQJ WKH \HDU LQ ZKLFK WKH FUHGLW ZDV
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
PXOWLSOLHGE\WKHSHUFHQWDJHUHGXFWLRQLQWKHQXPEHURITXDOL¿HG
employees. The credit to be recaptured is reported on line 31, Part
AAA of Form 500CR.
&HUWL¿FDWLRQPXVWEHLQFOXGHGZLWKWKH)RUP&5ZKHQFODLPLQJ
this credit.
)RUFHUWL¿FDWLRQRUIRULQIRUPDWLRQRQWKHVWDQGDUGVWKDWEXVLQHVVHV
must meet to qualify, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-6300
6SHFL¿F5HTXLUHPHQWV
3$57 -RE &UHDWLRQ 7D[ &UHGLW 0XVW ,QFOXGH 5HTXLUHG
&HUWL¿FDWLRQ
The amount of the approved credit is entered onto line 1, Part D.
)RUFUHGLWVFHUWL¿HGSULRUWR-DQXDU\RQO\enter on
line 2, Part D, 50% of the amount of credits from the prior year.
Add lines 1 and 2 to obtain the amount of Job Creation Tax Credits
that may be claimed this year. Enter the result on line 3, Part D.
1RFUHGLWVPD\EHHDUQHGIRUDQ\WD[\HDUEHJLQQLQJRQRU
DIWHU-DQXDU\
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
QRQSUR¿W RUJDQL]DWLRQ DSSURYHG E\ WKH 'HSDUWPHQW RI +RXVLQJ
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
,QYHVWPHQW 7D[ &UHGLW DUH DGYLVHG WR ¿OH XVLQJ )RUP &5
instead of Form 502CR. Individuals who have an existing
carryover on Part CC of their 2017 Form 500CR may elect to use
Form 502CR, if their excess carryover credit is attributable only
to the Community Investment Tax Credit.
1RWH A copy of the required approval from the DHCD must be
included with Form 500CR.
6SHFL¿F,QVWUXFWLRQV
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 $250,000.
Also, enter this amount on line 5, Part AAA.
This credit is not refundable and is applied only against the
Maryland State income tax. To the extent the credit is earned
in any year and it exceeds the State income tax, the individual
or business is entitled to an excess carryover of the credit until
LW LV XVHG RU LW H[SLUHV ¿YH \HDUV DIWHU WKH FUHGLW ZDV HDUQHG
ZKLFKHYHUFRPHV¿UVW
18-49
4
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
For more information contact:
Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite 450
Baltimore, MD 21201
410-209-5817
barbara.kearney@maryland.gov
PART F - BUSINESSES THAT CREATE NEW JOBS TAX CREDIT
To qualify, businesses must be located in Maryland and create new
positions or establish or expand business facilities in the state.
If a property tax credit (or an enhanced property tax credit) as
GH¿QHGLQ6HFWLRQRIWKH7D[3URSHUW\$UWLFOHLVJUDQWHGE\
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
DVFHUWL¿HGE\WKH6WDWH'HSDUWPHQWRI$VVHVVPHQWVDQG7D[DWLRQ
(SDAT).
%XVLQHVVHVFHUWL¿HGE\6'$7IRUWKH%XVLQHVVHVWKDW&UHDWH1HZ
Jobs Property Tax Credit will enter the amount of income tax credit
IRUZKLFKWKH\KDYHEHHQFHUWL¿HGRQOLQH3DUW)
%XVLQHVVHVFHUWL¿HGE\6'$7IRUWKH%XVLQHVVHVWKDW&UHDWH1HZ
Jobs Enhanced Property Tax Credit will enter the amount of income
WD[FUHGLWIRUZKLFKWKH\KDYHEHHQFHUWL¿HGRQOLQH3DUW)
(QWHUWKHWRWDORIWKHFHUWL¿HGDPRXQWE\DGGLQJOLQHVDQGDQG
entering the result on line 3, Part F.
Also enter this amount on line 6, Part AAA.
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
LW LV XVHG RU LW H[SLUHV ¿YH \HDUV DIWHU WKH FUHGLW ZDV HDUQHG
ZKLFKHYHUFRPHV¿UVW
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
$$$RI)RUP&5DQG¿OHGZLWKWKHWD[UHWXUQIRUWKHWD[\HDU
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
3$57 *  48$/,),(' 9(+,&/( 7$; &5(',7 75$&725
75$,/(59(+,&/(5(*,675$7,217$;&5(',7
General requirements A credit is allowed for the expense of
UHJLVWHULQJ D TXDOL¿HG YHKLFOH LQ 0DU\ODQG ³4XDOL¿HG YHKLFOH´
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
0DU\ODQG 0RWRU 9HKLFOH $GPLQLVWUDWLRQ 09$  ZLOO LVVXH D WD[
FUHGLWFHUWL¿FDWHLQWKHDPRXQWRIIRUHDFKTXDOLI\LQJYHKLFOH
registered during the taxable year. The aggregate amount of
WKHWD[FUHGLWFHUWL¿FDWHLVVXHGPD\QRWH[FHHGIRUDQ\
one taxpayer. An individual or business that obtains a tax credit
FHUWL¿FDWHPD\FODLPFUHGLWDJDLQVWWKH6WDWHLQFRPHWD[IRUWKH
DPRXQWRQWKHWD[FUHGLWFHUWL¿FDWH7KHFUHGLWDOORZHGPD\QRW
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 AAA, line 7.
Any unused credit amount for the tax year may not be carried
forward to any other taxable year.
1RWH$FRS\RIWKHWD[FUHGLWFHUWL¿FDWHIURP09$PXVWEHLQFOXGHG
with your tax return when claiming this tax credit.
1RFUHGLWPD\EHHDUQHGIRUDQ\WD[\HDUEHJLQQLQJRQRU
DIWHU-DQXDU\
PART H - CYBERSECURITY INCENTIVE TAX
CREDITS
3$57+,5HIXQGDEOH&UHGLWIRU,QYHVWRUVLQ&\EHUVHFXULW\
General Requirements A credit is available for an investment
LQ D TXDOL¿HG 0DU\ODQG F\EHUVHFXULW\ FRPSDQ\ 40&& 7KH
FUHGLW LV FODLPHG E\ D TXDOL¿HG LQYHVWRU $ TXDOL¿HG LQYHVWRU LV
an individual or entity that invests at least $25,000 in a QMCC
WKDWLV UHTXLUHGWR¿OHDQLQFRPH WD[UHWXUQLQDQ\MXULVGLFWLRQ
To qualify, a QMCC can be an entity of any form (except a sole
proprietorship) that is duly organized and existing under the laws
of any jurisdiction (or formed within 4 months of receiving the
LQYHVWPHQW IRU WKH SXUSRVH RI FRQGXFWLQJ EXVLQHVV IRU SUR¿W
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
WKDQSULRU¿VFDO\HDU
• 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;
• 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; and
• Provide any other information the Maryland Department of
Commerce may require.
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 unless
it is convertible 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
LQWHUHVW VKDOO YHVW LQ WKH TXDOL¿HG LQYHVWRU ³4XDOL¿HG LQYHVWRU´
PHDQVDQ LQGLYLGXDO RU HQWLW\WKDWLVUHTXLUHGWR¿OHDQ LQFRPH
tax return in any jurisdiction and invests at least $25,000 in a
40&&+RZHYHUWKHTXDOL¿HGLQYHVWRUPD\QRWDIWHUPDNLQJWKH
investment, own or control more than 25% of the equity interest
in the QMCC. See § 10-733 of the Tax-General Article.
At least 30 days prior to making an investment in a QMCC, a
18-49
5
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
TXDOL¿HGLQYHVWRU must submit an application to the Maryland
'HSDUWPHQWRI&RPPHUFHIRUDQLQLWLDOWD[FUHGLWFHUWL¿FDWH
At least 30 days prior to receiving an investment WKH 40&&
must submit an application to the Maryland Department of
&RPPHUFHWRHYLGHQFHWKDWWKH40&&KDVVDWLV¿HGWKHPLQLPXP
requirements for consideration as a QMCC.
)RU TXHVWLRQV RQ DSSOLFDWLRQ DQG FHUWL¿FDWLRQ SURFHVVHV RU IRU
additional information on this credit program, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438
6SHFL¿F5HTXLUHPHQWV
%DVHGRQWKHDFWXDODPRXQWRIWKHLQYHVWPHQWPDGHE\DTXDOL¿HG
investor, the Maryland Department of Commerce will issue a
¿QDOWD[FUHGLWFHUWL¿FDWHWRWKHTXDOL¿HGLQYHVWRU7KHTXDOL¿HG
investor may claim the tax credit for the amount provided in the
¿QDOFHUWL¿FDWH,IWKHFUHGLWH[FHHGVWKHWD[GXHWKHQDUHIXQG
for the excess amount may be claimed. The credit cannot be
FODLPHGXQWLOWKHGDWHRILVVXDQFHRIWKH¿QDOFHUWL¿FDWH,WPXVW
be claimed on the Maryland income tax return for the tax year in
which the investment is made in the QMCC.
$ FRS\ RI WKH ¿QDO FHUWL¿FDWH UHFHLYHG IURP WKH 0DU\ODQG
Department of Commerce is required to be included with your
return for the tax credit to be allowed. Complete Part H-I using
WKH LQIRUPDWLRQ SURYLGHG LQ WKH ¿QDO FHUWL¿FDWH DQG HQWHU WKH
amount of the approved investment on line 1.
On line 2, Part H-I, 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.
/LQH  3DUW +, UHÀHFWV WKH PD[LPXP GROODU DPRXQWRI FUHGLW
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-I, enter the lesser of line 2 or line 3.
On line 5, Part H-I, enter any applicable recapture amount. See
more information below about recapture amounts.
On line 6, Part H-I, 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-I, on line 7, Part CCC.
Note: If you are claiming a credit for more than one investment,
another separate Part H-I must be completed for each investment.
Total the amounts from line 6 from each separate Part H-I. Using
only one summary section, combine the total on line 7, Part CCC.
To claim the total credit, you must complete a second Part H-I at
WKHWLPH\RXHOHFWURQLFDOO\¿OH\RXULQFRPHWD[UHWXUQ
Recapture of Credit The credit is subject to recapture if within
2 years of the close of the taxable year in which the credit is
FODLPHG  WKH TXDOL¿HG LQYHVWRU VHOOV WUDQVIHUV RU RWKHUZLVH
disposes of the ownership interest in the QMCC that gave rise to
the credit; 2) the QMCC ceases operating as an active business
or distributes the equity investment; 3) the QMCC is not duly
RUJDQL]HGDQGH[LVWLQJZLWKLQPRQWKVRIUHFHLYLQJWKHTXDOL¿HG
investment. 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
GXULQJWKH¿UVW\HDUDIWHUWKHFORVHRIWKHWD[\HDUIRUZKLFK
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-I.
7KH FUHGLW PD\ DOVR EH VXEMHFW WR D UHFDSWXUH LI WKH FHUWL¿FDWH
is rescinded by the Maryland Department of Commerce due to
WKH TXDOL¿HG LQYHVWRU IDLOLQJ WR SURYLGH WKH UHTXLUHG QRWLFH WR
the Maryland Department of Commerce of having made the
investment, or if the Maryland Department of Commerce revokes
WKH ¿QDO FHUWL¿FDWLRQ GXH WR IDOVH UHSUHVHQWDWLRQV PDGH LQ
FRQQHFWLRQZLWKWKHDSSOLFDWLRQIRUWKHFHUWL¿FDWLRQ
3DVVWKURXJK (QWLWLHV ,I WKH FUHGLW LV FODLPHG E\ D TXDOL¿HG
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 QMCC located in Allegany
County, Dorchester County, Garrett County or Somerset County).
A PTE that earned the Cybersecurity Incentive Tax Credit must
HOHFWURQLFDOO\ ¿OH WKH 0DU\ODQG )RUP  )RUP &5 DQG DOO
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
PXVWFRPSOHWHWKH)RUP&5VHFWLRQRIWKHLUHOHFWURQLFDOO\¿OHG
0DU\ODQGUHWXUQDQGLQFOXGHDFRS\RIWKH¿QDOFHUWL¿FDWLRQIURP
the Maryland Department of Commerce and Maryland Schedule
K-1 (510) showing the allocated share of the credit amount.
PART H-II – NONREFUNDABLE CREDIT FOR BUYERS OF
CYBERSECURITY TECHNOLOGY AND/OR CYBERSECURITY
SERVICES
$ TXDOL¿HG EX\HU PD\ FODLP D FUHGLW LQ DQ DPRXQW HTXDO WR
50% of the cost incurred during the taxable year to purchase
cybersecurity technology and/or a cybersecurity services from
RQH RU PRUH TXDOL¿HG VHOOHUV )RU DQ\ WD[DEOH \HDU WKH FUHGLW
DOORZHGPD\QRW H[FHHG IRU HDFK TXDOL¿HGEX\HUDQG
the aggregate credits claimed for cybersecurity technology and/
RUF\EHUVHFXULW\VHUYLFHVSXUFKDVHGIURPDVLQJOHTXDOL¿HGVHOOHU
may not exceed $200,000.
$³&\EHUVHFXULW\%XVLQHVV´PHDQVDQHQWLW\RUJDQL]HGIRUSUR¿W
that is engaged primarily in the development of innovative
and proprietary cybersecurity technology or the provision of
cybersecurity service.
$ ³F\EHUVHFXULW\ VHUYLFH´ LV DQ DFWLYLW\ WKDW LV DVVRFLDWHG ZLWK
D FDWHJRU\ RU VXEFDWHJRU\ LGHQWL¿HG XQGHU WKH IUDPHZRUN
core established by the National Institute of Standards and
Technology’s Cybersecurity Framework.
$³F\EHUVHFXULW\WHFKQRORJ\´PHDQVSURGXFWVRUJRRGVLQWHQGHG
to detect or prevent activity intended to result in unauthorized
DFFHVVWRH[¿OWUDWLRQRI PDQLSXODWLRQRI RU LPSDLUPHQW WR WKH
LQWHJULW\FRQ¿GHQWLDOLW\RUDYDLODELOLW\RIDQLQIRUPDWLRQV\VWHP
or information stored on or transiting an information system.
$ ³4XDOL¿HG %X\HU´ PHDQV DQ\ HQWLW\ WKDW KDV IHZHU WKDQ 
HPSOR\HHVLQWKH6WDWHDQGWKDWLVUHTXLUHGWR¿OHDQLQFRPHWD[
return in the State.
$³4XDOL¿HG6HOOHU´PHDQVDF\EHUVHFXULW\EXVLQHVVWKDW
• Has its headquarters and base of operations in the State;
• (i) has less than $5,000,000 in annual revenue; (ii) is
a minority-owned, woman-owned, veteran-owned, or
service-disabled-veteran-owned business; or (iii) is located
in a historically underutilized business zone designated by
18-49
6
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
the United States Small Business Administration;
• Owns or has properly licensed any proprietary cybersecurity
technology; or provides cybersecurity service;
• Is in good standing;
• Is current in the payment of all tax obligations to the State
or any unit or subdivision of the State; and
• Is not in default under the terms of any contract with,
indebtedness to, or grant from the State or any unit or
subdivision of the State.
$TXDOL¿HGEX\HUHOLJLEOHIRUWKHFUHGLWPD\DSSO\WRWKH0DU\ODQG
'HSDUWPHQWRI&RPPHUFHIRUDFUHGLWFHUWL¿FDWHWKDWVWDWHVWKH
DPRXQWRIWKHFUHGLWWKHTXDOL¿HGEX\HUPD\FODLP$TXDOL¿HG
EX\HUPXVWDWWDFKDFRS\RIWKHFUHGLWFHUWL¿FDWHWRWKHLQFRPH
WD[ UHWXUQ RQ ZKLFK WKH TXDOL¿HG EX\HU FODLPV WKH FUHGLW 7KH
Maryland Department of Commerce approves each application
WKDWTXDOL¿HVIRUDFUHGLWFHUWL¿FDWH
6XEMHFWWR5HFDSWXUH The Maryland Department of Commerce
PD\ UHYRNH LWV FHUWL¿FDWLRQ RI D FUHGLW LI DQ\ UHSUHVHQWDWLRQ
PDGH LQ FRQQHFWLRQ ZLWK WKH DSSOLFDWLRQ IRU WKH FHUWL¿FDWLRQ LV
determined by the Maryland Department of Commerce to have
been false. The revocation may be in full or in part as the Maryland
Department of Commerce may determine.
)RU LQIRUPDWLRQ RQ WKH TXDOL¿FDWLRQV DQG DSSOLFDWLRQ SURFHVV
contact:
Maryland Department of Commerce
Abigail McKnight
Tax Specialist
2I¿FHRI)LQDQFH3URJUDPV
401 E. Pratt Street, 17th Floor
Baltimore, MD 21202
410-767-7234
Abigail.mcknight@maryland.gov
PART I - EMPLOYER-PROVIDED LONG-TERM CARE
INSURANCE TAX CREDIT
A credit is allowed for premiums paid by employers to provide long-
WHUPFDUHLQVXUDQFHWRWKHLUHPSOR\HHVDVSDUWRIWKHLUEHQH¿WV
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.
6SHFL¿F,QVWUXFWLRQV
On line 1, Part I, enter 5% of the long-term care insurance
SUHPLXPVSDLGDVSDUWRIDQHPSOR\HHEHQH¿WSDFNDJH
On line 2, Part I, enter the number of employees within Maryland
FRYHUHGXQGHUWKHHPSOR\HHEHQH¿WSDFNDJHRQWKHOLQHSURYLGHG
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 AAA.
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
H[SLUDWLRQ RI ¿YH \HDUV DIWHU WKH FUHGLW ZDV HDUQHG ZKLFKHYHU
FRPHV¿UVW
PART J – MARYLAND EMPLOYER SECURITY CLEARANCE
&267(6&&7$;&5(',7
A business may be eligible to claim credits against the State income
tax for certain costs related to federal-based security contracting.
)RUDEXVLQHVVWREHHOLJLEOHLWPXVWDSSO\WRDQGEHFHUWL¿HGE\
the Maryland Department of Commerce.
PART J-I – Credits for Sensitive Compartmented Information
)DFLOLWLHV 6&,)V DQG 6HFXULW\ &OHDUDQFH $GPLQLVWUDWLYH
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
LQFRPH WD[ XS WR  SHU WD[ \HDU IRU TXDOL¿HG VHFXULW\
clearance administrative expenses.
4XDOL¿HGH[SHQVHVLQFOXGH
• 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
PRGL¿FDWLRQPXVWEHPDGHLQWKHDPRXQWRIWKHFUHGLWFODLPHG
in Part J-I, line 3.
&ODLPLQJWKH7D[&UHGLW
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. To
FODLPWKHFUHGLWWKHDSSOLFDQWPXVW ¿OHDQHOHFWURQLF0DU\ODQG
income tax return with the Comptroller of Maryland for any taxable
year after the taxable year in which the costs were incurred; or 2)
¿OHDQHOHFWURQLFDPHQGHG0DU\ODQGLQFRPHWD[UHWXUQZLWKWKH
Comptroller of Maryland. A copy of the Maryland Department of
&RPPHUFHFHUWL¿FDWLRQPXVWEHLQFOXGHGZLWKWKHUHWXUQ
The business will enter the Maryland Department of Commerce-
FHUWL¿HGDPRXQWRIFRQVWUXFWLRQDQGHTXLSPHQWFRVWVLQFXUUHGWR
construct or renovate SCIFs on line 1, Part J-I.
2QOLQH3DUW-,WKHEXVLQHVVZLOOHQWHUWKHDPRXQWRIFHUWL¿HG
Security Clearance Administrative expenses, not to exceed
$200,000.
/LQH3DUW-,ZLOOUHÀHFWWKHVXPRIOLQHDQGOLQH7KLVDPRXQW
DOVRLVDQDGGLWLRQPRGL¿FDWLRQRQWKHWD[UHWXUQ
3$57 -,, ± 7KH )LUVW <HDU /HDVLQJ &RVWV 7D[ &UHGLW IRU
4XDOL¿HG6PDOO%XVLQHVVHV
$ TXDOL¿HG VPDOO EXVLQHVV DOVR PD\ FODLP D FUHGLW DJDLQVW LWV
Maryland income tax up to $200,000 for costs for rental payments
GXULQJWKH¿UVW\HDURIDUHQWDODJUHHPHQWIRUOHDVLQJVSDFHVWR
perform security-based contracting work.
,Q3DUW-,,DTXDOL¿HG VPDOOEXVLQHVVZLOOFODLP WKHDPRXQWRI
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.
18-49
7
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
1RFUHGLWVPD\EHHDUQHGIRUDQ\WD[\HDUEHJLQQLQJRQRU
DIWHU-DQXDU\
For more information, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-4041 or 410-767-6438
PART K - RESEARCH AND DEVELOPMENT TAX CREDITS
%XVLQHVVHVWKDWLQFXUTXDOL¿HGUHVHDUFKDQGGHYHORSPHQWH[SHQVHV
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.
7R FODLP WKH FUHGLW WKH DSSOLFDQW PXVW ¿OH DQ HOHFWURQLF
Maryland income tax return with the Comptroller of Maryland
for any of the 7 taxable years after the taxable year in which
WKH H[SHQVHV ZHUH LQFXUUHG RU  ¿OH DQ HOHFWURQLF DPHQGHG
Maryland income tax return with the Comptroller of Maryland.
Whenever this credit is claimed against the income tax, an addition
PRGL¿FDWLRQPXVWEHPDGHIRUWKHWD[\HDULQZKLFKWKHUHVHDUFK
DQGGHYHORSPHQWH[SHQVHVZHUHSDLG)RUFHUWL¿FDWLRQDQGPRUH
information contact the Maryland Department of Commerce.
&HUWL¿FDWLRQ PXVW EH REWDLQHG IURP WKH 0DU\ODQG 'HSDUWPHQW
of Commerce before the credit can be claimed. A copy of the
FHUWL¿FDWLRQ IURP WKH 0DU\ODQG 'HSDUWPHQW RI &RPPHUFH PXVW
be included with the return.
3$57 ., ± 5HVHDUFK DQG 'HYHORSPHQW 7D[ &UHGLWV IRU
%XVLQHVVHV1RW&HUWL¿HGDVD³6PDOO%XVLQHVV´
7KHUH DUH WZR FUHGLWV 7KH %DVLF &UHGLW LV  RI WKH TXDOL¿HG
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.
&ODLPLQJWKH7D[&UHGLW
The business will enter the Maryland Department of Commerce-
FHUWL¿HG%DVLF&UHGLWRQOLQH3DUW.,
On line 2, Part K-I, the business will enter the amount of the
0DU\ODQG'HSDUWPHQWRI&RPPHUFHFHUWL¿HG*URZWK&UHGLW 
/LQH3DUW.,ZLOOUHÀHFWWKHVXPRIOLQHDQGOLQH7KLVDPRXQW
is carried to line 11, Part AAA. Also, this amount is an addition
PRGL¿FDWLRQRQWKHWD[UHWXUQ
3$57 .,, ± 5HVHDUFK DQG 'HYHORSPHQW 7D[ &UHGLWV IRU
%XVLQHVVHV&HUWL¿HGDVD³6PDOO%XVLQHVV´
,IDEXVLQHVVLVFHUWL¿HGWRFODLPWKH5HVHDUFKDQG'HYHORSPHQW7D[
&UHGLWDVD³6PDOO%XVLQHVV´WKHFUHGLWLVFDOFXODWHGLQEDVLFDOO\
the same manner, but Part K-II is used.
$³6PDOO%XVLQHVV´LVGH¿QHGDVDIRUSUR¿WFRUSRUDWLRQOLPLWHG
liability company, partnership or sole-proprietorship with net
book value assets totaling at the beginning or the end of the tax
\HDUIRUZKLFKWKH0DU\ODQGTXDOL¿HGUHVHDUFKDQGGHYHORSPHQW
expenses are incurred, as reported on the balance sheet, less
than $5,000,000.
&ODLPLQJWKH7D[&UHGLW
The business will enter the Maryland Department of Commerce-
FHUWL¿HG%DVLF&UHGLWRQOLQH3DUW.,,
On line 5, Part K-II, the business will enter the amount of the
0DU\ODQG'HSDUWPHQWRI&RPPHUFHFHUWL¿HG*URZWK&UHGLW 
/LQH  3DUW .,, ZLOO UHÀHFW WKH VXP RI OLQH DQG OLQH  7KLV
amount is carried to line 6, Part CCC. Also, this amount is an
DGGLWLRQPRGL¿FDWLRQRQWKHWD[UHWXUQ
)RUFHUWL¿FDWLRQDQGIXUWKHULQIRUPDWLRQFRQWDFW
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-4980 or 410-767-6438
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
IRUSUR¿WDQGPXVWEHSULPDULO\HQJDJHGLQRUZLWKLQPRQWKV
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;
• +DYH EHHQ FHUWL¿HG DV D ELRWHFKQRORJ\ FRPSDQ\ E\ WKH
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
\HDUVIURPWKHGDWHWKHFRPSDQ\¿UVWUHFHLYHGDTXDOL¿HG
investment under this section; or,
• A company that, within 2 months of the receipt of the
investment, has met the requirements of a QMBC. Failure to
meet the requirements of a QMBC may result in revocation
RIWKHWD[FUHGLWFHUWL¿FDWHDQGUHFDSWXUHRIDQ\WD[FUHGLWV
DOUHDG\FODLPHGE\WKHTXDOL¿HGLQYHVWRU
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,
• 0XVWDSSO\IRUDQGUHFHLYH¿QDOFHUWL¿FDWLRQIURPWKH0DU\ODQG
Department of Commerce to claim the Biotechnology
Investment Incentive Tax Credit.
7KHDPRXQWRIWKHFUHGLWLVRIWKHLQYHVWPHQWLQWKHTXDOL¿HG
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
WLWOHWRZKLFKRZQHUVKLS VKDOOYHVWLQWKHTXDOL¿HGLQYHVWRU7KH
investment cannot include debt. See §10-725 of the Tax-General
Article and Code of Maryland Regulations 24.05.03.
18-49
8
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
)RU TXHVWLRQV RQ DSSOLFDWLRQ DQG FHUWL¿FDWLRQ SURFHVVHV RU IRU
additional information on this credit program, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-2368 or 410-767-6438
6SHFL¿F5HTXLUHPHQWV
The investor may claim the tax credit for the amount provided
LQWKH¿QDOFHUWL¿FDWH,IWKHFUHGLWDPRXQWH[FHHGVWKHWD[GXH
then a refund for the excess amount may be claimed. The credit
FDQQRWEHFODLPHGXQWLOWKHGDWHRILVVXDQFHRIWKH¿QDOFHUWL¿FDWH
It must be claimed on the Maryland income tax return for the tax
year in which the investor makes the investment in the QMBC.
%RWKWKH¿QDOFHUWL¿FDWHUHFHLYHGIURPWKH0DU\ODQG'HSDUWPHQW
RI&RPPHUFHDQGDVWDWHPHQWRIDI¿GDYLW VHHEHORZDVSUHSDUHG
by the investor are required to be included with your return for
the Biotechnology Investment Incentive Tax Credit to be allowed.
&RPSOHWH 3DUW / XVLQJ WKH LQIRUPDWLRQ SURYLGHG LQ WKH ¿QDO
FHUWL¿FDWHDQGHQWHUWKHDPRXQWRIWKHDSSURYHGLQYHVWPHQWRQ
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.
/LQH3DUW/UHÀHFWVWKHPD[LPXPGROODUDPRXQWRIFUHGLWSHU
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 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
WKHWLPH\RX¿OH\RXUHOHFWURQLFLQFRPHWD[UHWXUQ
Required Statement and Recapture of Credit The statement
RIDI¿GDYLWPXVWLQFOXGHWKH7D[SD\HU,GHQWL¿FDWLRQ1XPEHUDQG
name of the investor, signature of the investor under penalties of
perjury (or its authorized representative), and date.
7KHVWDWHPHQWRIDI¿GDYLWPXVWVWLSXODWHWKDWLI ZLWKLQ\HDUV
after the close of the tax year for which the credit is claimed, (1)
the investor sells, transfers or disposes of the ownership interest
LQWKH 40%& IRUZKLFKWKLVWD[FUHGLW ZDVFHUWL¿HGRU WKH
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
GXULQJWKH¿UVW\HDUDIWHUWKHFORVHRIWKHWD[\HDUIRUZKLFK
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
FHUWL¿FDWHLVUHVFLQGHGE\WKH0DU\ODQG'HSDUWPHQWRI&RPPHUFH
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
WKH¿QDOFHUWL¿FDWHGXHWRIDOVHUHSUHVHQWDWLRQVPDGHLQFRQQHFWLRQ
ZLWKDSSOLFDWLRQIRUWKHFHUWL¿FDWLRQ7KHFUHGLWZLOODOVREHVXEMHFW
WRUHFDSWXUHLIWKHLVVXHGFHUWL¿FDWHLVUHYRNHGE\WKH0DU\ODQG
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.
3DVVWKURXJK 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
PXVWHOHFWURQLFDOO\¿OHWKH0DU\ODQG)RUP)RUP&5DQG
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-
¿OHG0DU\ODQGUHWXUQDQGLQFOXGHWKHIROORZLQJFRSLHVRIWKH¿QDO
FHUWL¿FDWLRQ IURP WKH 0DU\ODQG 'HSDUWPHQW RI &RPPHUFH DQG
VWDWHPHQWRIDI¿GDYLWDQG0DU\ODQG6FKHGXOH. VKRZLQJ
the allocated share of credit amount.
PART M - COMMUTER TAX CREDIT
A credit is allowed for businesses that conduct or operate a trade
RUEXVLQHVVLQ0DU\ODQGDQGSURYLGHFRPPXWHUEHQH¿WVIRUWKHLU
employees.
The business must pay a portion of the cost of travel between the
HPSOR\HH¶VKRPHDQGWKHZRUNSODFH4XDOL¿HGFRPPXWHUEHQH¿WV
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
WKHFRVWDQHPSOR\HUSD\VWRSURYLGHD³*XDUDQWHHG5LGH+RPH´
SURJUDPRUIRUDSDUNLQJ³&DVK2XW´SURJUDPIRUWKHLUHPSOR\HHV
DOVRDUHTXDOL¿HGFRPPXWHUEHQH¿WV
7UDYHOPXVWEHRQDTXDOL¿HGPDVVWUDQVLWYHKLFOHRUV\VWHPRU
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
EHQH¿WVRUSHUPRQWKIRUHDFKHPSOR\HH
6SHFL¿F,QVWUXFWLRQV
2QOLQH3DUW0HQWHUWKHDPRXQWRITXDOL¿HGFRPPXWHUEHQH¿WV
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
FRPPXWHUEHQH¿WVZHUHSDLG
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
credit amount.
18-49
9
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
Enter the amount from line 5, Part M, to line 13, Part AAA.
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:
Maryland Department of Transportation
7201 Corporate Center Drive
Hanover, MD 21076
410-865-1100
ZZZFRPPXWHUFKRLFHPDU\ODQGFRP
PART N - CLEAN ENERGY INCENTIVE TAX CREDIT
This credit is allowed if a Maryland facility is originally placed in
VHUYLFHRULQLWLDOO\EHJDQFR¿ULQJGXULQJWKHSHULRGRI
through 12/31/2018 and produces electricity during the tax year
SULPDULO\XVLQJTXDOL¿HGHQHUJ\UHVRXUFHVGHULYHGIURP
• Wind
• Open and Closed Loop Biomass
• Geothermal
• Solar
• Small Irrigation
• Municipal Solid Waste
• 4XDOL¿HG+\GURSRZHU
The credit is 0.85 cents for each kilowatt hour of electricity
SURGXFHGDWD0DU\ODQGIDFLOLW\XVLQJTXDOL¿HGHQHUJ\UHVRXUFHV
GXULQJWKH¿YH\HDUSHULRGVSHFL¿HGLQWKHLQLWLDOFUHGLWFHUWL¿FDWH
<RXPXVWREWDLQDQLQLWLDOFUHGLWFHUWL¿FDWHIURP0DU\ODQG(QHUJ\
Administration before claiming this credit.
6SHFL¿F,QVWUXFWLRQV
On line 1, Part N, enter on the line provided the number of kilowatt
hours of electricity that ZDVQRWFR¿UHG with coal. Multiply this
number by .0085. Enter the result on line 1, Part N.
2Q OLQH  3DUW 1 HQWHU RQH¿IWK RI WKH DPRXQW VWDWHG RQ WKH
LQLWLDOFUHGLWFHUWL¿FDWH
Enter the lesser of line 1 or line 2 on line 3, Part N. Also enter
this amount on line 3, Part CCC.
7KH FUHGLW FODLPHG HDFK \HDU FDQQRW H[FHHG RQH¿IWK RI WKH
PD[LPXP DPRXQW VWDWHG LQ WKH LQLWLDO FUHGLW FHUWL¿FDWH ,I WKH
credit amount exceeds the tax due, a refund for the excess amount
may be claimed.
)RULQIRUPDWLRQFRQFHUQLQJTXDOL¿FDWLRQVIRUWKHFUHGLWFRQWDFW
Maryland Energy Administration
1800 Washington Blvd, Ste. 755
Baltimore, MD 21230
1RWH A copy of the certification by the Maryland Energy
Administration must be included.
PART O - MARYLAND-MINED COAL TAX CREDIT
$FUHGLWLVDOORZHGIRUDTXDOL¿HGFRJHQHUDWRUVPDOOSRZHUSURGXFHU
RUDQHOHFWULFLW\VXSSOLHU DVGH¿QHGXQGHURIWKH3XEOLF
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.
6SHFL¿F,QVWUXFWLRQV
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 AAA.
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.
7KHDPRXQWRIWKLVFUHGLWPXVWEHFHUWL¿HGE\WKH6WDWH'HSDUWPHQW
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
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Assessments and Taxation must be included.
PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX
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General requirements Credits may be claimed for eligible project
costs incurred to establish, relocate or expand a business facility in
a Tier I Maryland county. To qualify for the credit for project costs,
a minimum of $500,000 must be spent on eligible project costs. At
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least one year at the new or expanded facility for eligibility for the
maximum credit of $5,000,000, or at least 25 but fewer than 50 for
eligibility for a maximum credit of $2,500,000, or at least 10 but
fewer than 25 for eligibility for a maximum credit of $1,000,000.
This credit may also be claimed by tax-exempt nonprofit
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unrelated business taxable income.
If claiming a credit for multiple projects, complete a separate Part
P for each project.
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costs and other requirements businesses must satisfy to qualify
for credit, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438 or 410-767-4980
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the Secretary of the Maryland Department of Commerce unless
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The qualified business entity must report to the Maryland
Department of Commerce the amount of the project tax credit
that the entity claims on the entity’s tax return for each taxable
year that the entity claims any portion of the project tax credit.
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GLVTXDOL¿HVWKHHQWLW\IURPFODLPLQJDQ\XQFODLPHGDPRXQWRIWKH
project tax credit.
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SURMHFWWD[FUHGLWWKHTXDOL¿HGEXVLQHVVHQWLW\FDQQRWDOVRFODLP
a Job Creation Tax Credit authorized under Section 6-304 of the
Maryland Economic Development Article.
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project costs must follow the additional instructions following Part
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tax credit, may claim a prorated share of this credit, if: (1) the
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18-49
10
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
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PDLQWDLQHGDWOHDVWWKHPLQLPXPQXPEHURITXDOL¿HGSRVLWLRQV
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3$57 3,  &$/&8/$7,21 2) 7$;$%/( ,1&20(
:,7++2/',1*48$/,),('(03/2<((6$1'7$;/,$%,/,7<
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business entities, except PTE members. Column 2 is used by PTE
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rata share of the reported items, except lines 2a through 2c (see
the instructions below for Part P-I, Section A). PTEs complete
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$UH3DVV7KURXJK(QWLWLHVIROORZLQJ3DUW,96XPPDU\
37(PHPEHUVmust read the Special Instructions-II For Members
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BEFORE completing Part P-I.
Section A For taxpayers that are not PTE members, enter your
Maryland taxable net income from your return on line 1.
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taxable net income from the PTE on line 1.
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is not allocated or pro-rated; a PTE would report this same number
on Maryland Schedule K-1 (510) to all PTE members.
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duration, is paid at least 120% of the State minimum wage, is
located in a Tier I Maryland county, and is newly created as a
result of the establishment of a business facility.
1RWH If the number of employees entered on line 2a is fewer
than 10, do not continue. You are not eligible to claim the tax
credit for this year.
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TXDOL¿HGEXVLQHVVHQWLW\KDGPDLQWDLQHGDWOHDVWWKHPLQLPXP
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FUHGLWIRUDWOHDVW¿YH\HDUV,IWKHDQVZHULV³1R´$1'WKHQXPEHU
of employees entered on line 2a is fewer than the minimum
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credit, a credit may not be claimed for this year. The minimum
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credit having the maximum amount of $5,000,000. The minimum
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credit having the maximum amount of $2,500,000. The minimum
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credit having the maximum amount of $1,000,000.
Calculate the prorate factor on line 2c. If line 2a is greater than
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to qualify for the project tax credit, enter 1.000000.
A PTE will report the same numbers and information that appear
on lines 2a through 2c 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.
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business entity was required to withhold during this tax year
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General Article.
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Section B
Enter on line 4a:
• 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 through 24 of Form 502 (if you are QRWD37(PHPEHU
RIDTXDOL¿HGEXVLQHVVHQWLW\ RU
• The total tax liability from line 32c less any amounts from
lines 33 and 34 of Form 505 (if you are QRWD37(PHPEHU
RIDTXDOL¿HGEXVLQHVVHQWLW\
If you DUH D 37( PHPEHU RI D TXDOL¿HG EXVLQHVV HQWLW\
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 6a.
Enter on line 4b the amount calculated by multiplying line 4a by
line 2c.
Section C
1RWHPTE members will enter the distributive or pro rata share of
the total eligible project costs as stated on their Maryland Schedule
K-1 (510) when completing Column 2.
3URMHFWFRVWVEligible project costs are the costs and expenses that
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install, or equip the eligible economic development project.
Enter on line 5, the total eligible project costs for the eligible
economic development project.
Enter on line 6 the lesser of the amount reported on line 5 or
the allowable maximum project tax credit based on the number
RITXDOL¿HGHPSOR\HHV7KHWRWDOHOLJLEOHSURMHFWFRVWVPXVWEH
at least $500,000, and cannot exceed the allowable maximum.
37(VVWRSKHUH PTEs do not complete the remainder of Part P.
PART P-II - CREDIT AGAINST TAX LIABILITY AND TAX ON
INCOME OF THE QUALIFIED BUSINESS ENTITY
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 credit that can be claimed for the
project credit during nonrefundable tax years for the One Maryland
Economic Development Tax Credit. Part P-III is used to claim the
refundable tax credit.
The nonrefundable tax years consist of the initial tax year and any
carryover years. During this period, the nonrefundable credit is
limited up to the amount of the entity’s State tax liability.
A carryover credit may be claimed for the project tax credit
DJDLQVWWKH6WDWHLQFRPHWD[RQWKHWD[DEOHLQFRPHRIWKHTXDOL¿HG
business entity until the earlier of the full amount of excess eligible
project costs is used, or until the 10th taxable year following the
WD[DEOH\HDULQZKLFKWKHTXDOL¿HGEXVLQHVVHQWLW\FODLPVWKHWD[
credit.
Part P-II also is used to calculate a certain nonrefundable portion
of the project credit that may be claimed during the tax years
when the credit may have a refundable portion.
On line 7, enter the sum of the amount of the project credits
allowed for the eligible project costs in the initial tax year (the
¿UVWWD[\HDULQZKLFKWKLVFUHGLWZDVFODLPHGSULRUFDUU\RYHUWD[
years, and any refundable tax year amounts.
On line 8, subtract line 7 from line 6 and enter the result. If the
result is 0 or less, enter 0.
The amount on line 8 is the amount of remaining excess eligible
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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 taxable income
RIWKHTXDOL¿HGEXVLQHVVHQWLW\
Enter on line 9 the amount of the eligible Maryland State income
18-49
11
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
WD[OLDELOLW\ DWWULEXWDEOH WR WKH LQFRPHRI WKH TXDOL¿HG EXVLQHVV
entity (line 4b).
Enter on line 10, the lesser of line 8 or line 9. This amount is the
³&UHGLWDJDLQVWWD[RQWKHLQFRPHRIWKHTXDOL¿HGEXVLQHVVHQWLW\´
PART P-III - REFUNDABLE ONE MARYLAND ECONOMIC
DEVELOPMENT TAX CREDIT
Generally, at any time after the 4th taxable year in which the
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may request a refund of any excess credit.
For any taxable year, the total amount claimed as a refund must
QRWH[FHHGWKHDPRXQWRIWD[WKDWWKHTXDOL¿HGEXVLQHVVHQWLW\
is required to withhold for the taxable year from the wages of
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General Article.
The refundable portion of the project credit for the tax year is
calculated after the nonrefundable portion of the credit is claimed.
The refundable portion is calculated by subtracting the amount
allowed as the nonrefundable portion of this credit (line 10, Part
P-II) claimed for this tax year from the remaining available project
credit amount (line 8, Part P-II).
Subtract line 10, Part P-II, from line 8, Part P-II, and enter result
on line 11, 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. It is the tentative refund
amount.
The refundable portion is limited to the amount of Maryland income
WD[ ZLWKKHOG GXULQJ WKLV WD[ \HDU IURP WKH ZDJHV RI TXDOL¿HG
employees (line 3). Enter the amount from line 3 on line 12, Part
P-III.
Enter the allowable refund amount on line 13, Part P-III. This
amount is the lesser of line 11 or line 12.
PART P-IV – SUMMARY
Complete the summary of credit amounts claimed for the project
credits for the One Maryland Economic Development Tax Credit.
Enter on line 14 the nonrefundable portion of the project costs
credit from line 10. This is the total nonrefundable
One Maryland Economic Development Tax Credit.
This amount should also be entered on line 16, Part AAA.
Enter on line 15 the refundable portion of the project costs credit
from line 13. This is the total refundable One Maryland Economic
Development Tax Credit.
This amount should also be entered on line 1, Part CCC.
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Department of Commerce must be included.
SPECIAL INSTRUCTIONS-I FOR QUALIFIED BUSINESS
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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 C re d it :
1. Maryland taxable income;
1XPEHURITXDOL¿HGHPSOR\HHV
3.If the number of employees is fewer than the minimum
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SURMHFWWD[FUHGLWD37(PXVWVWDWHZKHWKHURUQRWWKHTXDOL¿HG
EXVLQHVVHQWLW\KDG¿OOHGWKHPLQLPXPQXPEHURITXDOL¿HG
positions required to qualify for the project tax credit for at
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credit;
4. Amount of Maryland income tax required to be withheld from
WKHVHTXDOL¿HGHPSOR\HHV
5. Total eligible project costs;
6. The allowable maximum;
7. $500,000 minimum
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
.ZKHWKHURU QRWWKH37( LVDTXDOL¿HGEXVLQHVV HQWLW\ZKLFK
would be entitled to pass on a refundable credit or whether the
credit is nonrefundable only. The PTE must provide a copy of the
¿QDOFHUWL¿FDWLRQWRHDFKPHPEHU
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
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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.
7KH37(PHPEHU WKHPHPEHURIWKHTXDOL¿HGEXVLQHVVHQWLW\
must limit the amounts claimed for the project 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 enters the result on line
4a. Multiply the tax amount entered on 4a by the factor on line 2c
and enter the result on line 4b.
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member’s share of items as reported on the Maryland Schedule
K-1 (510).
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preceding instructions for the respective parts.
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PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX
&5(',7&(57,),('%()25(-8/<
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. $WOHDVWQHZO\KLUHG
TXDOL¿HGHPSOR\HHVPXVWEHHPSOR\HGIRUDWOHDVWRQH\HDU
DWWKHQHZRUH[SDQGHGIDFLOLW\
This credit may also be claimed by tax-exempt nonprofit
RUJDQL]DWLRQV WKDW DUH TXDOL¿HG EXVLQHVV HQWLWLHV DJDLQVW WKHLU
unrelated business taxable income.
If claiming a credit for multiple projects, complete a separate Part
P for each project.
)RULQIRUPDWLRQRQGLVWUHVVHGFRXQWLHVTXDOL¿HGHPSOR\HHVHOLJLEOH
costs and other requirements, businesses must satisfy to qualify
18-49
12
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
for credit, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438 or 410-767-4980
3DVVWKURXJKHQWLWLHV 37(V¿OLQJ0DU\ODQG)RUPZLWKHOLJLEOH
project costs and eligible start-up costs must follow the additional
LQVWUXFWLRQVIROORZLQJ3DUW3±,96XPPDU\
1RWH)RUWD[\HDUVEHJLQQLQJDIWHU'HFHPEHUDTXDOL¿HG
EXVLQHVVHQWLW\ZKLFKKDVEHHQFHUWL¿HGIRUWKHWD[FUHGLWPD\
FODLPDSURUDWHGVKDUHRIWKLVFUHGLWLI WKHQXPEHURITXDOL¿HG
positions falls below 25, but does not fall below 10, and (2) the
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SRVLWLRQVIRUDWOHDVW¿YH\HDUV
3$573,&$/&8/$7,212)7$;$%/(,1&20(:,7++2/'-
,1*48$/,),('(03/2<((6$1'7$;/,$%,/,7<
1RWH3DUW3,KDVWZRFROXPQV&ROXPQLVXVHGE\DOOTXDOL¿HG
business entities, except PTE members. Column 2 is used by PTE
PHPEHUVRQO\DQGVKRXOGUHÀHFWDPHPEHU¶VGLVWULEXWLYHRUSUR
rata share of the reported items, except lines 4a through 4d (see
the instructions below for Part P-I, Section A). PTEs complete
RQO\6HFWLRQV$DQG&RI3DUW3,
5HDGWKH6SHFLDO,QVWUXFWLRQV,)RU4XDOL¿HG(QWLWLHV7KDW
$UH3DVV7KURXJK(QWLWLHVIROORZLQJ3DUW,96XPPDU\
37(PHPEHUVmust read the Special Instructions-II For Members
2I 4XDOL¿HG %XVLQHVV (QWLWLHV 7KDW $UH 3DVV7KURXJK (QWLWLHV
BEFORE completing Part P-I.
Section A 7KLVVHFWLRQLVXVHGWRVHSDUDWHWKHTXDOL¿HGEXVLQHVV
HQWLW\¶V0DU\ODQG WD[DEOHLQFRPHIURPWKH SURMHFW WKH³SURMHFW
WD[DEOHLQFRPH´IURPWKH0DU\ODQGWD[DEOHLQFRPHQRWDVVRFLDWHG
ZLWKWKHSURMHFW WKH³QRQSURMHFWWD[DEOHLQFRPH´3URMHFWWD[DEOH
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.
)RU37(PHPEHUVRIDTXDOL¿HGEXVLQHVVHQWLW\HQWHU\RXU0DU\ODQG
taxable net income from the PTE on line 1.
On line 2, enter your share of the Maryland taxable income from the
SURMHFW ³SURMHFWWD[DEOHLQFRPH´RIWKHTXDOL¿HGEXVLQHVVHQWLW\
To calculate the project taxable income, proceed as follows:
1. If the project is a totally separate facility, then project
LQFRPHLV¿JXUHGE\XVLQJVHSDUDWHDFFRXQWLQJUHÀHFWLQJ
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
IDFLOLW\WKHQ¿JXUHQHWLQFRPHDWWULEXWDEOHWRWKHHQWLUH
IDFLOLW\ E\ XVLQJ VHSDUDWH DFFRXQWLQJ UHÀHFWLQJRQO\ WKH
gross income, deductions, expenses, gains, and losses
directly attributable to the facility and overhead expenses
apportioned to the facility and net income attributable to
WKHSURMHFW1H[W¿JXUHWKHSURMHFWLQFRPHE\DSSRUWLRQLQJ
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.
(QWHURQOLQHDWKHQXPEHURITXDOL¿HGHPSOR\HHV7KLVQXPEHU
is not allocated or pro-rated; a PTE would report this same number
on Maryland Schedule K-1 (510) to all PTE members.
$TXDOL¿HGHPSOR\HHLV DQHPSOR\HH¿OOLQJ DTXDOL¿HGSRVLWLRQ
*HQHUDOO\ WKLV LV D SRVLWLRQ WKDW LV IXOOWLPH DQG RI LQGH¿QLWH
duration, is paid at least 150% of the federal minimum wage, is
ORFDWHG LQ D TXDOL¿HG GLVWUHVVHG 0DU\ODQG FRXQW\ DQG LV QHZO\
created as a result of the establishment of a business facility.
1RWH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.
(QWHUD³<HV´RUD³1R´WRWKHTXHVWLRQRQOLQHEZKHWKHUWKH
TXDOL¿HG EXVLQHVV HQWLW\ KDG PDLQWDLQHG DW OHDVW  TXDOL¿HG
SRVLWLRQVIRU DWOHDVW¿YH\HDUV,IWKHDQVZHU LV³1R´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.
(QWHURQOLQHWKHDPRXQWRI0DU\ODQGLQFRPHWD[WKHTXDOL¿HG
business entity was required to withhold during this tax year
IURPWKHZDJHVRITXDOL¿HGHPSOR\HHVXQGHURIWKH7D[
General Article.
,I\RXDUHD37(VNLS6HFWLRQ%&RQWLQXHWR6HFWLRQ&$OO
RWKHUWD[SD\HUVFRPSOHWH3DUW%
Section B 7KLVVHFWLRQLVXVHGWRFDOFXODWHWKHTXDOL¿HGEXVLQHVV
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
PHPEHURIDTXDOL¿HGEXVLQHVVHQWLW\ RU
• The total tax liability from line 32c less any amounts from
lines 33 and 34 of Form 505 (if you are not a 37(PHPEHU
RIDTXDOL¿HGEXVLQHVVHQWLW\
,I\RXDUHD37(PHPEHURIDTXDOL¿HGEXVLQHVVHQWLW\PXOWLSO\
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.
37( PHPEHUV RI TXDOL¿HG EXVLQHVV HQWLWLHV PXVW PXOWLSO\ WKH
amount on line 2 by the highest rate used to calculate the tax on
their Maryland tax returns. Enter this amount on line 7a.
7KLVVHFWLRQDOVRUHÀHFWVWKHDSSOLFDWLRQRIWKHSURUDWHIDFWRUWR
WKHWD[OLDELOLWLHVFRPSXWHGRQOLQHDDQGDZKHQDTXDOL¿HG
business entity has between 10 and 24 employees, but has had
DWOHDVWTXDOL¿HGHPSOR\HHVIRUDWOHDVW¿YH\HDUVVLQFHWKH\
have been eligible for this tax credit.
18-49
13
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
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
1RWH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.
3URMHFWFRVWV Eligible project costs are the costs and expenses that
DTXDOL¿HGEXVLQHVVHQWLW\LQFXUVWRDFTXLUHFRQVWUXFWUHKDELOLWDWH
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
ORFDWLRQWRDORFDWLRQLQDTXDOL¿HGGLVWUHVVHG0DU\ODQGFRXQW\
Enter on line 11, the total eligible start-up costs to establish or
H[SDQGDEXVLQHVVIDFLOLW\LQDTXDOL¿HGGLVWUHVVHGFRXQW\
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.
(QWHU RQ OLQH  WKH QXPEHU RI TXDOL¿HG HPSOR\HHV HPSOR\HG
at the new or expanded business facility (from line 4a, Part P-I)
multiplied by $10,000.
37(VVWRSKHUH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
ORFDWHVLQDTXDOL¿HGGLVWUHVVHGFRXQW\
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.
6HFWLRQ$3URMHFW&RVWV7D[&UHGLW
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
¿UVWWD[\HDULQZKLFKWKLVFUHGLWZDVFODLPHGSULRUFDUU\RYHUWD[
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
SURMHFW FRVWV WKDW DUH DYDLODEOH WR EH FODLPHG E\ WKH TXDOL¿HG
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
WKH³&UHGLWDJDLQVWWD[RQLQFRPHIURPWKHSURMHFW´
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
WREHFODLPHGE\WKHTXDOL¿HGEXVLQHVVHQWLW\DVDVWDUWXSFUHGLW
On line 20, enter the lesser of line 13 or line 19. The start-up credit
LVHTXDOWRWKHOHVVHURIWKHDPRXQWRQOLQHRUOLQH TXDOL¿HG
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
WKHTXDOL¿HGEXVLQHVVHQWLW\¶V0DU\ODQG6WDWHLQFRPHWD[OLDELOLW\
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
VHUYLFHRUWKHEXVLQHVVORFDWHVWRDTXDOL¿HGGLVWUHVVHGFRXQW\WKH
business may apply the excess to the entity’s total Maryland State
income tax liability and may request a refund of any excess credit.
,IWKHPDMRULW\RIWKHTXDOL¿HGSRVLWLRQVDUHSDLGDWOHDVWRI
the federal minimum wage, then the refundable years will begin
after the 2nd tax year rather than the 4th tax year.
6HFWLRQ$3URMHFW&RVWV
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.
18-49
14
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
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
WD[ ZLWKKHOG GXULQJ WKLV WD[ \HDU IURP WKH ZDJHV RI TXDOL¿HG
employees (line 5).
On line 28, Part P-III, re-enter the amount of Maryland income
WD[UHTXLUHGWREHZLWKKHOGIURPWKHTXDOL¿HGHPSOR\HHV7KLVLV
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
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
WD[UHTXLUHGWREHZLWKKHOGIURPWKHTXDOL¿HGHPSOR\HHV7KLVLV
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
IURPWKHZDJHVRITXDOL¿HGHPSOR\HHVOLQH
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.
1RWH$ FRS\RIWKH¿QDOFUHGLWFHUWL¿FDWLRQIURPWKH0DU\ODQG
Department of Commerce must be included.
SPECIAL INSTRUCTIONS-I FOR QUALIFIED BUSINESS
(17,7,(67+$7$5(3$667+528*+(17,7,(637(V
$ TXDOL¿HG EXVLQHVV HQWLW\ WKDW LV D 37( SDUWQHUVKLS //& 6
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 C re d it :
1. Maryland taxable income;
2. Maryland taxable income from the project;
3. Non-project taxable income;
 1XPEHURITXDOL¿HGHPSOR\HHV
5. If the number of employees is fewer than 25 employees, a
37(PXVWVWDWHZKHWKHURUQRWWKHTXDOL¿HGEXVLQHVVHQWLW\
KDG ¿OOHG TXDOL¿HGSRVLWLRQVIRUDWOHDVW ¿YH\HDUVIURP
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
WKHVHTXDOL¿HGHPSOR\HHV
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
.ZKHWKHURUQRW WKH37(LVDTXDOL¿HG EXVLQHVV HQWLW\ZKLFK
would be entitled to pass on a refundable credit or whether the
credit is nonrefundable only. The PTE must provide a copy of the
¿QDOFHUWL¿FDWLRQWRHDFKPHPEHU
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
¿OHWKHDSSOLFDEOH0DU\ODQGLQFRPHWD[UHWXUQFRPSOHWLQJWKH)RUP
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.
7KH37(PHPEHU WKHPHPEHURIWKHTXDOL¿HGEXVLQHVVHQWLW\
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,
VKRXOGUHÀHFWWKH37(PHPEHU¶VVKDUHRILWHPVDVUHSRUWHGRQWKH
Maryland Schedule K-1 (510).
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preceding instructions for the respective parts.
1RWH7KHPHPEHUPXVWLQFOXGHDFRS\RIWKH37(¶V¿QDOFUHGLW
FHUWL¿FDWLRQWRFODLPWKHFUHGLW
PART Q – OYSTER SHELL RECYCLING TAX CREDIT
18-49
15
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
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
$1,500 per taxpayer.
$Q\ XQXVHG FUHGLW DPRXQW IRU WKH WD[ \HDU PD\ QRW EH
FDUULHGIRUZDUGWRDQ\RWKHUWD[\HDU
To claim the credit, an individual or corporation must submit
FHUWL¿FDWLRQIURPWKH0DU\ODQG'HSDUWPHQWRI1DWXUDO5HVRXUFHV
ZKLFKYHUL¿HVWKHDPRXQWRIR\VWHUVKHOOVUHF\FOHGGXULQJWKH\HDU
This credit is claimed on line 1, Part Q, and also is entered on line
17, Part AAA, Business Tax Credit Summary.
1RFUHGLWPD\EHHDUQHGIRUDQ\WD[\HDUEHJLQQLQJRQRU
DIWHU-DQXDU\
For additional information, contact:
Maryland Department of Natural Resources
7DZHV6WDWH2I¿FH%XLOGLQJ
580 Taylor Avenue
Annapolis, MD 21401
410-260-8300
PART R - ENERGY STORAGE SYSTEMS TAX CREDIT
The credit is for certain costs to install an energy storage
system paid or incurred during the taxable year.
³(QHUJ\VWRUDJHV\VWHP´PHDQVDV\VWHPXVHGWRVWRUHHOHFWULFDO
energy, or mechanical, chemical, or thermal energy that was
once electrical energy, for use as electrical energy at a later date
or in a process that offsets electricity use at peak times.
<RX PXVW REWDLQ D WD[ FUHGLW FHUWL¿FDWH IURP 0DU\ODQG (QHUJ\
Administration before claiming this credit. A copy of the
FHUWL¿FDWLRQ E\ WKH 0DU\ODQG (QHUJ\ $GPLQLVWUDWLRQ PXVW EH
included.
This credit is not refundable and is applied only against the
Maryland State income tax. No carryover of excess credits exists
for this tax credit.
This credit is claimed on line 1, Part R, and also is entered on line
18, Part AAA, Business Income Tax Summary.
7KHFUHGLWPD\QRWEHFODLPHGIRUDQHQHUJ\VWRUDJHV\VWHP
LQVWDOOHG EHIRUH -DQXDU\   RU DIWHU 'HFHPEHU 

For additional information, contact:
Maryland Energy Administration
Attn: Energy Storage Program
1800 Washington Blvd
Baltimore, MD 21230
410-537-4000
EnergyStorage.MEA@maryland.gov
PART S - MORE JOBS FOR MARYLANDERS TAX
CREDIT
A manufacturing business that is located within Tier I or Tier II
counties in Maryland may be entitled to a 10-year income tax credit
EDVHGRQWKHWRWDODPRXQWRIZDJHVSDLGIRUHDFKTXDOL¿HGSRVLWLRQ
at an eligible facility. The eligible business must be conducting or
operating a trade or business that is primarily engaged in activities
WKDWLQDFFRUGDQFHZLWKWKH1RUWK$PHULFDQ,QGXVWULDO&ODVVL¿FDWLRQ
6\VWHP 1$,&68QLWHG 6WDWHV 0DQXDO8QLWHG 6WDWHV 2I¿FH RI
Management and Budget, 2012 Edition, would be included in Sector
RU7KHHOLJLEOHEXVLQHVVFDQQRWEHDUH¿QHUDVGH¿QHG
in Section 10-101 of the Business Regulation Article.
$TXDOL¿HGSRVLWLRQLVIXOO±WLPHDQGRILQGH¿QLWHGXUDWLRQSD\VDW
least 120% of the State minimum wage, is located in a facility,
LVQHZO\FUHDWHGDWDVLQJOHIDFLOLW\LQWKH6WDWHDQGLV¿OOHG$
TXDOL¿HGSRVLWLRQ GRHV QRW LQFOXGHD SRVLWLRQ WKDW LV L FUHDWHG
when an employment function is shifted from an existing facility
of a business entity in the State to another facility of the same
business entity if the position is not a net new job in the State;
(ii) created through a change in ownership of a trade or business;
(iii) created through a consolidation, merger, or restructuring of
a business entity if the position is not a net new job in the State;
(iv) created when an employment function is contractually shifted
from an existing business entity to another business entity in the
6WDWHLIWKHSRVLWLRQLVQRWDQHWQHZMRELQWKH6WDWHRU Y ¿OOHG
for a period of less than 12 months.
An eligible facility is a facility operating in a Tier I or Tier II county.
A new business entity may apply to the Maryland Department of
Commerce to enroll its project in the More Jobs for Marylanders
SURJUDPDQGEHFHUWL¿HGE\WKH0DU\ODQG'HSDUWPHQW&RPPHUFH
DV D 4XDOL¿HG %XVLQHVV (QWLW\ 4XDOL¿HG %XVLQHVV (QWLWLHVPD\
apply for approval of an income tax credit if the eligible project
is in a Tier I county and the Business entity intends to create at
OHDVW¿YHTXDOL¿HGSRVLWLRQVDWWKHSURMHFWORFDWLRQ
An existing business entity may apply to the Maryland Department
of Commerce to enroll its project in the More Jobs for Marylanders
SURJUDPDQGEHFHUWL¿HGE\WKH0DU\ODQG'HSDUWPHQWRI&RPPHUFH
DV D 4XDOL¿HG %XVLQHVV (QWLW\ 4XDOL¿HG %XVLQHVV (QWLWLHVPD\
apply for approval of an income tax credit if the eligible project:
(1) is in a Tier I county and the business entity intends to create
DWOHDVW¿YHTXDOL¿HGSRVLWLRQVDWWKHSURMHFWORFDWLRQRU  LVLQ
a Tier II county and the business entity intends to create at least
TXDOL¿HGSRVLWLRQVDWWKHSURMHFWORFDWLRQ
1RWH7KHLQFRPHWD[FUHGLWPD\EHFODLPHGE\D4XDOL¿HG%XVLQHVV
(QWLW\ IRU XS WR  FRQVHFXWLYH EHQH¿W \HDUV +RZHYHU LI WKH
QXPEHURITXDOL¿HGSRVLWLRQVDWWKHHOLJLEOHSURMHFWGHFUHDVHVWRD
QXPEHUOHVVWKDQWKHQXPEHUHVWDEOLVKHGLQWKH¿UVWEHQH¿W\HDU
the project shall be removed from the tax credit eligibility, and
the tax credit terminates.
A new business entity that operates an eligible project in a Tier
I county, or an existing business entity that operates an eligible
project, may claim a credit against the State income tax equal to
WKHDPRXQWVWDWHGLQWKH¿QDOWD[FUHGLWFHUWL¿FDWHDSSURYHGE\
the Maryland Department of Commerce for an eligible project. The
amount of the credit authorized is equal to the product of 5.75%
DQGWKHWRWDODPRXQWRIZDJHVSDLGIRUHDFKTXDOL¿HGSHUVRQDW
an eligible project.
If the tax credit allowed in any taxable year exceeds the total
WD[ RWKHUZLVH SD\DEOH E\ WKH TXDOL¿HG EXVLQHVV HQWLW\ IRU WKDW
WD[DEOH\HDUWKHTXDOL¿HGEXVLQHVVHQWLW\PD\FODLPDUHIXQGLQ
the amount of the excess.
This credit is claimed on Part S, line 1, and is also entered on
Refundable Business Income Tax Credits, Part CCC, line 9.
Recapture of Credit The credit may be subject to recapture if
the credit is revoked by the Maryland Department of Commerce
GXHWRIDOVHUHSUHVHQWDWLRQVPDGHE\DTXDOL¿HGEXVLQHVVHQWLW\
determined to have been false when made.
)RU TXHVWLRQV RQ TXDOL¿FDWLRQV IRU WKH FUHGLW 7LHU , RU 7LHU ,,
FRXQWLHVDSSOLFDWLRQDQGFHUWL¿FDWLRQSURFHVVHVRUIRUDGGLWLRQDO
information on this credit program, contact:
Maryland Department of Commerce
PART T – WINERIES AND VINEYARDS TAX CREDIT
Businesses may claim a credit against the State income tax
for qualified 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.
18-49
16
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
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
WKHFHUWL¿HGDSSOLFDQWV
³4XDOL¿HG &DSLWDO ([SHQVHV´ DUH DOO H[SHQGLWXUHV PDGH E\ WKH
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 FRPPHUFHPDU\ODQGJRY.
Utilities, labor costs, service costs, repair costs, maintenance costs,
construction costs, and general supplies are NOT eligible expenses.
$EXVLQHVV PXVW EH FHUWL¿HGDV D TXDOL¿HG EXVLQHVVHQWLW\WKDW
LV HOLJLEOH IRU WKH WD[ FUHGLW $SSOLFDWLRQV IRU FHUWL¿FDWLRQ DUH
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.
To claim the credit, the business must: 1) File an electronic
Maryland income tax return with the Comptroller of Maryland
IRUDQ\WD[DEOH\HDUDIWHUWKHWD[DEOH\HDULQZKLFKWKHTXDOL¿HG
capital expenses were incurred; or 2) File an electronic amended
tax return with the Comptroller of Maryland for the year in which
WKHH[SHQVHVZHUHLQFXUUHG$FRS\RIWKHFHUWL¿FDWLRQIURPWKH
Maryland Department of Commerce must be included with the
return.
This credit is claimed on line 1, Part T, and also is entered on line
20, Part A, Business Tax Credit Summary.
,IWKH:LQHULHVDQG9LQH\DUGV7D[&UHGLWVH[FHHGWKH6WDWHLQFRPH
tax imposed for that year, the credits may be carried forward for
15 years.
1RFUHGLWPD\EHHDUQHGIRUDQ\WD[\HDUEHJLQQLQJRQRU
DIWHU-DQXDU\
For additional information, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438 or 410-767-4041
PART U - FILM PRODUCTION ACTIVITY TAX CREDIT
$TXDOL¿HG¿OPSURGXFWLRQHQWLW\PD\FODLPDFUHGLWDJDLQVWWKH
6WDWHLQFRPHWD[IRU¿OPSURGXFWLRQDFWLYLWLHVLQWKHVWDWHLQDQ
DPRXQWHTXDOWRWKHDPRXQWVWDWHGLQWKH¿QDOWD[FUHGLWFHUWL¿FDWH
approved by the Maryland Department of Commerce.
If the tax credit allowed exceeds the total tax otherwise payable by
WKHTXDOL¿HG¿OPSURGXFWLRQHQWLW\IRUWKDWWD[\HDUWKHTXDOL¿HG
¿OPSURGXFWLRQ HQWLW\PD\FODLPDUHIXQGLQ WKHDPRXQWRIWKH
excess.
7RFODLP WKH FUHGLW EHIRUHEHJLQQLQJ D ¿OP SURGXFWLRQ DFWLYLW\
D TXDOL¿HG ¿OP SURGXFWLRQ HQWLW\ VKDOO DSSO\ ZLWK WKH 0DU\ODQG
'HSDUWPHQWRI&RPPHUFHIRU DQ LQLWLDO FUHGLW FHUWL¿FDWHIRUWKH
HVWLPDWHGSURGXFWLRQFRVWV*HQHUDOO\WRTXDOLI\DVD¿OPSURGXFWLRQ
entity, the estimated total direct costs incurred in Maryland must
exceed $250,000. However, for a Maryland small or independent
¿OPHQWLW\WRTXDOLI\DVD¿OPSURGXFWLRQHQWLW\WKHHVWLPDWHGWRWDO
direct costs incurred in Maryland must exceed $25,000 and at least
RIWKH¿OPLQJRIWKH¿OPSURGXFWLRQDFWLYLW\PXVWRFFXUZLWKLQ
Maryland. The credit claimed cannot exceed the amount stated in
WKH¿QDOFHUWL¿FDWH
(QWHURQOLQH3DUW8WKHDPRXQWRIWD[FUHGLWFHUWL¿HGE\WKH
Maryland Department of Commerce. This amount is also entered
on line 5, Part CCC.
For additional information, contact:
Catherine Batavick, Deputy Director
0DU\ODQG)LOP2I¿FH
Maryland Department of Commerce
401 E. Pratt St., 14th Floor
Baltimore, MD 21202
410-767-6342
catherine.batavick@maryland.gov
1RWH$FRS\RIWKHFHUWL¿FDWLRQE\WKH0DU\ODQG'HSDUWPHQWRI
Commerce must be included.
PART V - ENDOW MARYLAND TAX CREDIT
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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
DQG&RPPXQLW\ 'HYHORSPHQW '+&'IRUDFHUWL¿FDWLRQIRUWKH
GRQDWLRQ7KLVFHUWL¿FDWLRQPXVWEHDWWDFKHGWRWKH)RUP&5
DWWKHWLPHWKH0DU\ODQGLQFRPHWD[UHWXUQLV¿OHG
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
CC of their 2017 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
/LQH   (QWHU WKH DPRXQW RI DSSURYHG GRQDWLRQ WR D TXDOL¿HG
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 AAA.
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
DQH[FHVVFDUU\RYHURIWKHFUHGLWXQWLOLWLVXVHGRULWH[SLUHV¿YH
\HDUVDIWHUWKHFUHGLWZDVHDUQHGZKLFKHYHUFRPHV¿UVW
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
18-49
17
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
410-209-5800 or 410-209-5809
endowmaryland.nr@maryland.gov or karen.forbes@maryland.gov
3$57 :  $(5263$&( (/(&7521,&6 25 '()(16(
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
LVEDVHGRQWKHQXPEHURITXDOL¿HGSRVLWLRQVFUHDWHGRUUHWDLQHG
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
TXDOL¿HGEXVLQHVVHQWLW\$TXDOL¿HGEXVLQHVVHQWLW\LVDQLQGLYLGXDO
RUEXVLQHVVFRQGXFWLQJRURSHUDWLQJDIRUSUR¿WWUDGHRUEXVLQHVV
LQ 0DU\ODQG WKDW LV FHUWL¿HG E\ WKH 0DU\ODQG 'HSDUWPHQW RI
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
OHDVWTXDOL¿HGSRVLWLRQVLQ0DU\ODQGDQGVXEPLWDEXGJHW
evidencing the business entity will expend at least $25,000,000 in
qualifying expenditures in Maryland during the credit year for the
SURMHFWWREHFHUWL¿HGE\WKH0DU\ODQG'HSDUWPHQWRI&RPPHUFHDV
an Aerospace, Electronics, or Defense Contract Tax Credit Project.
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for Aerospace, Electronics, or Defense Contract Tax Credit Projects
LQD¿VFDO\HDU
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with an annual salary of at least $85,000, including associated
EHQH¿WVLVORFDWHGLQ0DU\ODQGLVFUHDWHGRUUHWDLQHGDVDUHVXOW
of the Aerospace, Electronics, or Defense Contract Tax Credit
3URMHFWRIWKHTXDOL¿HGEXVLQHVVHQWLW\DQGLV¿OOHG$TXDOL¿HG
SRVLWLRQGRHVQRWLQFOXGHDSRVLWLRQWKDWLV¿OOHGIRUDSHULRGRI
less than 12 months.
4XDOL¿HG H[SHQGLWXUHV DUH FDSLWDO H[SHQGLWXUHV WKDW KDYH EHHQ
H[SHQGHGRUZLOOEHH[SHQGHGE\DTXDOL¿HGEXVLQHVVHQWLW\DQG
that the Maryland Department of Commerce determines have
met the requirements for an Aerospace, Electronics, or Defense
Contract Tax Credit Project.
)RU TXHVWLRQV RQ DSSOLFDWLRQ DQG FHUWL¿FDWLRQ SURFHVVHV RU IRU
additional information on this credit program, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438
&ODLPLQJWKH7D[&UHGLW
/LQH(QWHUWKHQXPEHURITXDOL¿HGHPSOR\HHVHPSOR\HGGXULQJ
the credit year.
Line 2 - Multiply line 1 by $250 and enter the result on line 2.
/LQH±7KLVOLQHUHÀHFWVWKHPD[LPXPGROODUDPRXQWSHUSURMHFW
($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 CCC.
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 CCC.
To claim the total credit, you must complete a second Part W at
WKHWLPH\RXHOHFWURQLFDOO\¿OH\RXULQFRPHWD[UHWXUQ
Recapture of Credit The credit must be recaptured if, during
HLWKHURIWKH\HDUVDIWHUWKHFUHGLW\HDUWKHQXPEHURITXDOL¿HG
SRVLWLRQV RI WKH TXDOL¿HG EXVLQHVV HQWLW\ IDOOV EHORZ D UROOLQJ
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
QXPEHU RI TXDOL¿HG HPSOR\HHV RYHU WKH SDVW  \HDUV 7KH
recomputed credit is then subtracted from the amount of credit
previously allowed. If, during any of the 2 years after the credit
\HDUWKHUROOLQJDYHUDJHRITXDOL¿HGSRVLWLRQVIDOOVEHORZ
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
ODQG ZDWHUVKHGV VLJQL¿FDQW HFRV\VWHPV YLHZVKHGV RU KLVWRULF
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
FRQYH\DQFHRIWKHHDVHPHQWLVVXEVWDQWLDWHGE\DFHUWL¿HG
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
7D[&UHGLW)RUP&537(PHPEHUVZKRDUH¿GXFLDULHVVKRXOG
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,
ZKLFKHYHU¿UVWRFFXUV
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
VXEVWDQWLDWHGE\DFHUWL¿HGUHDOHVWDWHDSSUDLVHU
For additional information contact:
Maryland Environmental Trust
410-697-9515
ZZZGQUVWDWHPGXVPHW
or
Maryland Agricultural Land Preservation Foundation
410-841-5860
or
Department of Natural Resources
410-260-8367
1RWH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
18-49
18
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
Schedules K-1 (504) issued to PTE members.
PART Y - APPRENTICE EMPLOYEE TAX CREDIT
General Requirements Certain taxpayers may be eligible for
DQLQFRPHWD[FUHGLWIRUWKH¿UVW\HDURIHPSOR\PHQWRIHOLJLEOH
apprentices. The income tax credit is based on the number of
eligible apprentices employed by the taxpayer.
³(OLJLEOH DSSUHQWLFH´ PHDQV DQ LQGLYLGXDO ZKR LV HQUROOHG
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.
6SHFL¿F,QVWUXFWLRQV
/LQH(QWHUWKHQXPEHURIHOLJLEOHDSSUHQWLFHVLQWKHLU¿UVW\HDU
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 AAA.
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.
1RWH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
4XDOL¿HGIDUPVWKDWPDNHDQHOLJLEOHIRRGGRQDWLRQPD\EHHOLJLEOH
IRUDQLQFRPHWD[FUHGLW$TXDOL¿HGIDUPWKDWPDNHVDQHOLJLEOH
food donation is eligible for a tax credit amount equal to 50% of
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DGRQDWLRQRIFHUWL¿HGRUJDQLFSURGXFHLVHOLJLEOHIRUDWD[FUHGLW
DPRXQWHTXDOWRRIWKHYDOXHRIWKHGRQDWHGFHUWL¿HGRUJDQLF
SURGXFH&HUWL¿FDWLRQRIWKHWD[FUHGLWLVLVVXHGE\DQLQGLYLGXDORU
organization authorized by the State Department of Agriculture to
UHFHLYHHOLJLEOHIRRGGRQDWLRQVIURPDTXDOL¿HGIDUPDQGWRLVVXH
WKHTXDOL¿HGIDUPDWD[FUHGLWFHUWL¿FDWH)RUDQ\WD[DEOH\HDUWKH
DJJUHJDWHDPRXQWRIFUHGLWVDXWKRUL]HGIRUDTXDOL¿HGIDUPPD\
not exceed $5,000 unless the Maryland Secretary of Agriculture
LQFUHDVHVWKHFUHGLWOLPLWDWLRQIRUDTXDOL¿HGIDUPWRDQDPRXQW
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,
ZKLFKHYHU¿UVWRFFXUV
³4XDOL¿HGIDUPV´PHDQVDIDUPEXVLQHVVWKDWLVORFDWHGLQ$QQH
Arundel County, Calvert County, Charles County, Montgomery
County, Prince George’s County, or St. Mary’s County.
³(OLJLEOH IRRG GRQDWLRQ´ PHDQV IUHVK IDUP SURGXFWV IRU KXPDQ
FRQVXPSWLRQ³&HUWL¿HGRUJDQLFSURGXFH´PHDQVDQHOLJLEOHIRRG
GRQDWLRQ FHUWL¿HG XQGHU 7LWOH  6XEWLWOH RI WKH $JULFXOWXUH
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 AAA, line 26.
)RU TXHVWLRQV RQ DSSOLFDWLRQ DQG FHUWL¿FDWLRQ SURFHVVHV RU IRU
additional information on this credit program, contact:
Maryland Department of Agriculture
50 Harry S. Truman Parkway
Annapolis, Maryland 21401
410-841-5770
mda.maryland.gov
1RWH$FRS\RIDOOFHUWL¿FDWHVLVVXHGE\D7D[&UHGLW&HUWL¿FDWH
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
$FUHGLWPD\EH FODLPHG E\ D VPDOOEXVLQHVVIRU HDFK TXDOL¿HG
YHWHUDQ HPSOR\HH KLUHG 7KH FUHGLW IRU HDFK TXDOL¿HG YHWHUDQ
HPSOR\HHPD\QRWH[FHHGRIXSWRWKH¿UVWRIZDJHV
SDLG WR WKH TXDOL¿HG YHWHUDQ HPSOR\HH GXULQJ WKH ¿UVW \HDU RI
employment. A small business qualifying for this tax credit is
required to apply to the Maryland Department of Commerce for
D WD[ FUHGLW FHUWL¿FDWH $ FRS\ RI WKH 0DU\ODQG 'HSDUWPHQW RI
&RPPHUFHFHUWL¿FDWLRQ PXVWEHLQFOXGHGZLWK WKHWD[UHWXUQRI
the small business to claim this tax credit.
³4XDOL¿HGYHWHUDQHPSOR\HH´PHDQVDQLQGLYLGXDOZKR
(1) Is honorably discharged or released under honorable
circumstances from active military, naval, or air service as
GH¿QHGLQ86&DQG
 ,VDTXDOL¿HGYHWHUDQDVGH¿QHGXQGHU86&G
(3)(a) for purposes of the Federal Work Opportunity Tax
Credit.
³6PDOO EXVLQHVV´ PHDQV DQ LQGLYLGXDO D SDUWQHUVKLS D OLPLWHG
partnership, a limited liability partnership, a limited liability
company, or a corporation that employs 50 or fewer full-time
employees.
$ VPDOO EXVLQHVV PD\ QRW FODLP WKH FUHGLW IRU PRUH WKDQ ¿YH
TXDOL¿HGYHWHUDQHPSOR\HHVLQDWD[DEOH\HDU$VPDOOEXVLQHVV
PD\QRWFODLPDFUHGLWIRUDTXDOL¿HGYHWHUDQHPSOR\HHZKRLVKLUHG
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 AAA, line 27.
Any unused credit amount for the tax year may not be carried
forward to any other taxable year.
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additional information on this credit program, contact:
Maryland Department of Commerce
2I¿FHRI)LQDQFH3URJUDPV7D[,QFHQWLYHV*URXS
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438 or 410-737-4041
1RWH $ FRS\ RI WKH WD[ FUHGLW FHUWL¿FDWLRQ IURP WKH 0DU\ODQG
Department of Commerce must be included with Form 500CR.
PART AAA - 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 AAA, with the following exceptions:
• No entry is to be made on lines 2, 12, 14, 19, 21 and 23
because the credits to which they relate are refundable
credits and will be claimed on Part CCC.
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 CC,
18-49
19
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
from 2017 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 AAA, enter the State income tax from your return.
Corporations will enter line 14 of Form 500 on line 33, Part AAA.
Individuals will enter line 21 less amounts from lines 22 through 24
from Form 502 on line 33, Part AAA, 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,
.,.,,DQG97KHVHDGGLWLRQVDUHFRPSULVHGRIOLQHVD
DQGIURP3DUW$$$DQGOLQHIURP3DUW9DQGOLQHIURP3DUW
CCC. 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 BBB - EXCESS CREDIT CARRYOVER CALCULATION
Most credits may not exceed the Maryland income tax liability,
EXWPD\EHFDUULHGIRUZDUGIRUDVSHFL¿HGQXPEHURIVXFFHVVLYH
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 CCC - REFUNDABLE BUSINESS INCOME TAX CREDITS
Part CCC is used to report the refundable portion of business
income tax credits:
On line 1, enter the One Maryland Economic Development Tax
&UHGLWIURP3DUW3,9
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 Small Business Relief Tax Credit from line 1,
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 Incentive Tax Credit for Investors
in Cybersecurity from line 6, Part H-I.
On line 8, enter the Aerospace, Electronics, or Defense Contract
Tax Credit from line 6, Part W.
On line 9, enter the More Jobs for Marylanders Tax Credit from
line 1, Part S.
On line 10, enter the total of all of the business income tax credits
from lines 1 through 9.
,I\RXDUH¿OLQJ)RUPRU)RUPHQWHUWKLVDPRXQWRQOLQH
10 and on Part CC, line 3 of Form 502CR.
If line 10 is less than 0, enter the result on the appropriate return
as a negative number.
,I\RXDUH¿OLQJ)RUPRU)RUPFRQWLQXHWR3DUW'''
PART DDD – CORPORATION AND PASS-THROUGH ENTITY
37(5()81'$%/(7$;&5(',76800$5<
Part DDD is used by corporations and PTEs to summarize the
refundable 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 CCC, 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 re-
IXQGDEOHEXVLQHVVLQFRPHWD[FUHGLW,I\RXDUH¿OLQJ0DU\ODQG
Form 500, enter this amount on Form 500, line 15d.
1RWH,I\RXDUH¿OLQJ )RUP\RXZLOOnot report the total
amount from line 10 to your members.
A PTE will report on Maryland Schedule K-1 (510) the distributive
or pro rata share of each tax credit to its members.
5HPLQGHU One Maryland Economic Development Tax Credit re-
quires additional entries on Maryland Schedule K-1 (510).
18-49
20
MARYLAND
BUSINESS INCOME TAX
FORM
2018
CREDITS INSTRUCTIONS
500CR
Part Credit
No
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over
5
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7
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Until
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Used
A Enterprise Zone Tax Credit X
B Small Business Relief 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 4XDOL¿HG9HKLFOH7D[&UHGLW X
H-I Cybersecurity Incentive Tax Credit for Investors in
Cybersecurity
X
H-II Cybersecurity Incentive Tax Credit for Buyers of Cy-
bersecurity Technology and/or Cybersecurity Services
X
I Employer-Provided Long-Term Care Insurance Tax
Credit
X
J-I Maryland Employer Security Clearance Costs Tax
Credit
X
J-II )LUVW<HDU/HDVLQJ&RVWV7D[&UHGLWIRU4XDOL¿HG6PDOO
Businesses
X
K-I Research and Development Tax Credit for Businesses
QRW&HUWL¿HGDVD³6PDOO%XVLQHVV´
X
K-II Research and Development Tax Credits for Businesses
&HUWL¿HGDVD³6PDOO%XVLQHVV´
X
L Biotechnology Investment Incentive Tax Credit X
M Commuter Tax Credit X
N Clean Energy Incentive Tax Credit X
O Maryland-Mined Coal Tax Credit X
P One Maryland Economic Development Tax Credit** X X
Q Oyster Shell Recycling Tax Credit X
R Energy Storage Systems Tax Credit X
S More Jobs for Marylanders Tax Credit X
T :LQHULHVDQG9LQH\DUGV7D[&UHGLW X
U Film Production Activity Tax Credit X
9 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 4XDOL¿HG)DUPV7D[&UHGLW X
AA 4XDOL¿HG9HWHUDQ(PSOR\HHV7D[&UHGLW X
* The carryforward period for unused Research and Development Tax Credits from tax years prior to 2005 remains 15 years. The same credit can-
not be applied against more than one type of tax by the same taxpayer.
** The carryover for the One Maryland Economic Development Tax Credit is calculated within Part P by total credit available and subtracting prior
year credits from the total. Therefore, the Excess Credit Carryover calculation is not used to calculate an additional carryover. The carryover is 10
years for credits approved after June 30, 2018. The carryover is 14 years for credits approved prior to July 1, 2018.
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
No
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over
5
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7
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
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Until
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Used
Green Building Tax Credit X
Cellulosic Ethanol Technology Research & Develop-
ment Tax Credit
X
18-49
21
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Form 2018: 500CR BUSINESS INCOME TAX CREDITS INSTRUCTIONS (Comptroller of Maryland)

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Completed 20 July 2020

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