BUSINESS INCOME TAX
For questions on application and certication processes or for
additional information on this credit program, contact:
Maryland Department of Commerce
Ofce of Finance Programs, Tax Incentives Group
401 E. Pratt St.
Baltimore, MD 21202
410-767-2368 or 410-767-6438
The investor may claim the tax credit for the amount provided
in the nal certicate. If the credit amount exceeds the tax due,
then a refund for the excess amount may be claimed. The credit
cannot be claimed until the date of issuance of the nal certicate.
It must be claimed on the Maryland income tax return for the tax
year in which the investor makes the investment in the QMBC.
Both the nal certicate received from the Maryland Department
of Commerce and a statement of afdavit (see below) as prepared
by the investor are required to be included with your return for
the Biotechnology Investment Incentive Tax Credit to be allowed.
Complete Part L using the information provided in the nal
certicate and enter the amount of the approved investment on
On line 2, Part L, enter 50% of the approved investment. For a
QMBC located in Allegany County, Dorchester County, Garrett
County or Somerset County, enter 75% of the approved investment.
Line 3, Part L, reects the maximum dollar amount of credit per
investment. Enter $250,000. For a QMBC located in Allegany
County, Dorchester County, Garrett County or Somerset County,
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.
Note: If you are claiming a credit for more than one investment,
another separate Part L must be completed for each investment.
Total the amount from line 6, from each separate Part L. Using
only one summary section, combine the total on line 2, Part CCC.
To claim the total credit, you must complete a second Part L at
the time you le your electronic income tax return.
Required Statement and Recapture of Credit The statement
of afdavit must include the Taxpayer Identication Number and
name of the investor, signature of the investor under penalties of
perjury (or its authorized representative), and date.
The statement of afdavit must stipulate that if, within 2 years
after the close of the tax year for which the credit is claimed, (1)
the investor sells, transfers or disposes of the ownership interest
in the QMBC, for which this tax credit was certied, or, (2) the
QMBC ceases operating as an active business with its headquarters
and base of operations in Maryland, the investor must notify the
Comptroller by reporting the applicable recapture amount on the
investor’s Maryland tax return for the tax year in which the event
causing the recapture occurred.
The applicable recapture amount is calculated by multiplying the
total amount of the credit claimed (or in the case of a sale, transfer
or other disposition of the ownership interest, the portion of the
credit attributable to the ownership interest disposed of), by one
of the following percentages:
• 100%, if the event requiring recapture of the credit occurs
during the tax year for which the tax credit is claimed;
• 67%, if the event requiring recapture of the credit occurs
during the rst year after the close of the tax year for which
the tax credit is claimed; or,
• 33%, if the event requiring recapture of the credit occurs more
than 1 year but not more than 2 years after the close of the
tax year for which the tax credit is claimed. The amount of
recapture is entered onto line 5, Part L.
An investor’s credit also may be subject to a recapture if the
certicate is rescinded by the Maryland Department of Commerce
due to the investor failing to provide the required notice to
the Maryland Department of Commerce of having made the
investment, or if the Maryland Department of Commerce revokes
the nal certicate due to false representations made in connection
with application for the certication. The credit will also be subject
to recapture if the issued certicate is revoked by the Maryland
Department of Commerce because a company failed to satisfy the
requirements of a QMBC within 2 months. See Code of Maryland
Regulations 24.05.03 for rescission and revocation procedures.
Pass-through entities If the credit is earned by an investor
that is a PTE, the members of the PTE may claim the distributive
or pro rata shares of the credit amount subject to the $250,000
limitation (or $500,000 for a QMBC located in Allegany County,
Dorchester County, Garrett County or Somerset County). A PTE
that earned the Biotechnology Investment Incentive Tax Credit
must electronically le the Maryland Form 510, Form 500CR and
all other required attachments for members to be permitted to
claim the credit. See Form 510 instructions.
For a member of the PTE to be allowed the credit, the member
must complete the Form 500CR section of their electronically-
led Maryland return and include the following: copies of the nal
certication from the Maryland Department of Commerce and
statement of afdavit; and Maryland Schedule K-1 (510) showing
the allocated share of credit amount.
PART M - COMMUTER TAX CREDIT
A credit is allowed for businesses that conduct or operate a trade
or business in Maryland and provide commuter benets for their
The business must pay a portion of the cost of travel between the
employee’s home and the workplace. Qualied commuter benets
include the cost of transit instruments (tickets, passes, vouchers,
fare cards, smartcards and tokens) used to transport an employee
of the business to or from home and the workplace. The portion of
the cost an employer pays to provide a “Guaranteed Ride Home”
program or for a parking “Cash-Out” program for their employees
also are qualied commuter benets.
Travel must be on a qualied mass transit vehicle or system, or
in a vanpool. The vanpool vehicle must seat at least 6 adults and
be used primarily to transport employees between home and the
The credit is the lesser of 50% of the cost of providing commuter
benets or $100 per month for each employee.
On line 1, Part M, enter the amount of qualied commuter benets
paid on behalf of employees.
On line 2, Part M, enter 50% of the amount entered on line 1.
On line 3, Part M, enter the number of employees for which
commuter benets were paid.
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