Fill - Free fillable Form 2018: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland) PDF form

COM/RAD-007-1

MARYLAND

FORM

500CRW

WAIVER REQUEST FOR ELECTRONIC

FILING OF FORM 500CR

This form must be attached to form 500CR

2018

OR FISCAL YEAR BEGINNING 2018, ENDING

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

Name

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

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

City or town State ZIP Code +4

Reason For Waiver Request (Please check one):

A. Do not have access to a computer.

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

C. Other (explain) _________________________________________________________________________________

_____________________________________________________________________________________________

Signature Date

Instructions

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

electronically. You must include a reason for the waiver

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

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

be processed.

The waiver request should be included with the Form

500CR in the ling of your return.

Check here for Identity Theft

Print Using Blue or Black Ink Only

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2018

OR FISCAL YEAR BEGINNING 2018, ENDING

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

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

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

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

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

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

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

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

6. Number of qualified employees eligible for credit not included in PART A-I ................ 6

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

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

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

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

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

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

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

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

13. Number of qualified employees eligible for credit not included in PART A-III ..............13

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

PART A - SUMMARY

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

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

PART B - SMALL BUSINESS RELIEF TAX CREDIT ** Must Include Required Certification

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

PART C - MARYLAND DISABILITY EMPLOYMENT TAX CREDIT FOR EMPLOYEES ** Must Include Required Certification

PART C-I CREDIT FOR EMPLOYEES WITH A DISABILITY

1. Number of qualified employees. First year Second year

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

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

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

PART C-II CREDIT FOR CHILD CARE AND TRANSPORTATION EXPENSES

5. Number of qualified employees. First year Second year

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

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

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

transportation expenses per qualified employee with a disability) ..................... 7

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

PART C - SUMMARY

9. Total Maryland Disability Employment Tax Credit for the current tax year (Add lines 4 and 8.) .. 9

PART D - JOB CREATION TAX CREDIT ** Must Include Required Certification

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

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

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

above. Enter the entity's Federal Employer Identication Number. If from more than one, see

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

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

see instructions.

FEIN

Name as shown on Form

Taxpayer Identification Number

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2018

page 2

2. Enter remaining 50% of credits from prior year (For credits certified prior to

January 1, 2018 only) ......................................................2

3. Total Job Creation Tax Credits that may be claimed this year (Add lines 1 and 2.) ...........3

PART E - COMMUNITY INVESTMENT TAX CREDIT ** Must Include Required Certification

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

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

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

PART F - BUSINESSES THAT CREATE NEW JOBS TAX CREDIT

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

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

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

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

** Must Include Required Certification

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

PART H - CYBERSECURITY INCENTIVE TAX CREDITS ** Must Include Required Certification

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

PART H-I CREDIT FOR INVESTORS IN CYBERSECURITY

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

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

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

Dorchester County, Garrett County, or Somerset County.

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

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

Dorchester County, Garrett County, or Somerset County.

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

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

6. Total credit for investors in cybersecurity. (Subtract line 5 from line 4 and enter this amount

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

PART H-II- CREDIT FOR BUYERS OF CYBERSECURITY TECHNOLOGY and/or CYBERSECURITY SERVICES

7. Credit (certified by the Maryland Department of Commerce) ..........................7

8. Enter any amount of recapture. See instructions ..................................8

9. Total credit for buyers of cybersecurity technology and/or cybersecurity services (subtract

line 8 from line 7 and enter this amount here and in PART AAA, line 8. If less than zero,

enter negative amount.) ....................................................9

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

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

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

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

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

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

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

SECURITY CLEARANCE ADMINSTRATIVE EXPENSES

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

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

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

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

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

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2018

page 3

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

(For first year leasing costs incurred between 1/1/2018 and 12/31/2018.)

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

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

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

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

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

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

FOR THIS CREDIT

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

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

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

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

FOR THIS CREDIT

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

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

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

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

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

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

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

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

Dorchester County, Garrett County, or Somerset County.

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

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

Dorchester County, Garrett County, or Somerset County.

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

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

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

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

PART M - COMMUTER TAX CREDIT

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

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

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

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

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

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

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

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

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

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

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

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

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

PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX CREDIT CERTIFIED AFTER JUNE 30, 2018**Must Include

Required Certification

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

EMPLOYEES AND TAX LIABILITY

Section A

1. Enter your Maryland taxable income (See instructions for PART P-I) .....1.

2a. Enter the number of qualified employees (DO NOT PRORATE.) ........2a

The minimum number of qualified employees is 50 to qualify for the project tax credit having the maximum amount of

$5,000,000; or 25 for $2,500,000; or 10 for $1,000,000.

Column 1

All qualified persons,

but NOT PTE members

Column 2

PTE members only

(enter your pro rata

share from PTE)

. .

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2018

page 4

2b. Have you maintained at least the minimum number of qualified employees

required to qualify for the project tax credit for at least 5 years? ........ Yes No Yes No

NOTE: If line 2a is less than the minimum number of qualified employees required to qualify for the project tax credit, and the

answer to Question is “No,” STOP HERE. You may not claim this tax credit.

NOTE: If line 2a is less than 10, STOP HERE. You may not claim this tax credit.

2c. Prorate factor (Enter line 2a divided by the minimum number of qualified

employees required to qualify for the project tax credit; if greater than 1,

enter 1.000000.) ........................................2c.

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

qualified employees. ......................................3.

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

Section B

4a. Total tax liability: line 14 of Form 500, line 21 less any amounts from

lines 22 through 24 of Form 502; or, line 32c less any amounts from

lines 33 and 34 of Form 505. If less than 0, enter 0 .................4a

PTE member: Multiply the income on line 1, Section A, by the highest

tax rate used to calculate the tax on your Maryland tax return. Enter this

amount on line 4a.

4b. Multiply line 4a by line 2c ...................................4b

Section C

5. Total eligible project costs ($500,000 minimum) ................... 5

6. Enter the lesser of line 5 or allowable maximum project tax credit based

on the number of qualified employees. (See instructions) ............ 6

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

PART P-II CREDIT AGAINST TAX LIABILITY AND TAX ON INCOME OF THE QUALIFIED BUSINESS ENTITY

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

your tax liability.

7. Enter the sum of project cost credits and refunds taken in prior tax years .................7

8. Subtract line 7 from line 6; if less than 0, enter 0 ..................................8

9. Eligible Maryland State tax liability on income of the qualified business entity

(Enter the amount from line 4b.) ..............................................9

10. Credit against tax on the income of qualified business entity (Enter the lesser of line 8 or line 9.) 10

PART P-III Refundable Credit

11. Tentative refund (Credit remaining after deducting credit against tax on the income of the

qualified business entity.)(Subtract line 10 from line 8. If less than 0, enter 0.) ............11

12. Maryland income tax required to be withheld during this tax year from qualified employees

(Enter the amount from line 3.) ..............................................12

13. Refund allowable for this tax year. Enter the lesser of line 11 or line 12 .................13

PART P-IV Summary

14. Total nonrefundable One Maryland Economic Development Tax Credit.

(Enter the amount from line 10.) .............................................14

15. Total refundable One Maryland Economic Development Tax Credit.

(Enter the amount from line 13.) .............................................15

PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX CREDIT CERTIFIED BEFORE JULY 1, 2018 **Must Include

Required Certification

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

EMPLOYEES AND TAX LIABILITY

Section A

1. Enter your Maryland taxable income (See instructions for PART P-I.). . . . 1

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

All qualied persons

(except for PTEs)

including PTE

members

Column 1

All qualified persons, but

NOT PTE members

Column 2

PTE members only

(enter your pro rata

share from PTE)

Column 1

All qualified persons, but

NOT PTE members

Column 2

PTE members only

(enter your pro rata

share from PTE)

. .

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2018

page 5

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

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

4a. Enter the number of qualified employees (DO NOT PRORATE.) ...... 4a

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

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

NOTE: If line 4a is less than 25, and the answer to Question is “No,”

STOP HERE. You may not claim this tax credit.

NOTE: If line 4a is less than 10, STOP HERE. You may not claim this tax credit.

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

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

from qualified employees .................................. 5

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

Section B

6. Total tax liability:

line 14 of Form 500,

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

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

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

PTE member: Multiply the highest tax rate calculated on your return by the income on line 1.

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

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

8a. Tax on non-project income (Subtract line 7a from line 6. If less than 0, enter 0.) 8a

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

Section C

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

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

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

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

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

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

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

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

will reduce your tax liability.

Section A Project Costs

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

15. Subtract line 14 from line 10; if less than 0, enter 0. ...............................15

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

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

Section B Start-up Costs

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

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

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

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

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

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

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

PART P-III Refundable Credit

Section A Project costs

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

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

Column 1

All qualified persons, but

NOT PTE members

Column 2

PTE members only

(enter your pro rata

share from PTE)

All qualified persons

(except for PTEs) including

PTE members

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2018

page 6

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

25. Tax available for application of credit

(Subtract line 17 and line 22 from line 6. If less than 0, enter 0.) ......................25

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

27. Tentative refund (Subtract line 26 from line 23. If less than 0, enter 0.) .................27

28. Maryland income tax required to be withheld during this tax year from qualified employees

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

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

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

Section B Start-up costs

30. Tentative refund (Subtract line 22 from line 20. If less than 0, enter 0.) .................30

31. Maryland income tax required to be withheld during this tax year from qualified employees

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

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

PART P-IV Summary

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

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

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

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

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

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

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

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

PART R - Energy Storage Systems Tax Credit ** Must Include Required Certification

1. Credit (certified by the Maryland Energy Administration) .............................1

PART S - More Jobs for Marylanders Tax Credit ** Must Include Required Certification

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

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

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

PART U - FILM PRODUCTION ACTIVITY TAX CREDIT ** Must Include Required Certification

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

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

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

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

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

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

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

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

3. Maximum Credit ......................................................... 3 $2,500,000.00

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

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

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

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

PART X - PRESERVATION AND CONSERVATION EASEMENTS Tax Credit** Must Include Required Certification

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

2. Enter the amount of any payment received for the easement during 2018 ............... 2

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

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

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

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

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

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2018

page 7

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

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

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

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

PART AAA - BUSINESS TAX CREDIT SUMMARY

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

2. Small Business Relief Tax Credit (See PART CCC, line 4.) ........................... 2 XXXXXXXXXXX

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

4. Total Job Creation Tax Credit from PART D, line 3 ................................ 4

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

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

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

8. Total nonrefundable credit for buyers of cybersecurity technology and/or cybersecurity

services from PART H-II, line 9 ............................................. 8

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

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

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

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

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

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

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

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

16. Total nonrefundable One Maryland Economic Development Tax Credit from PART P-IV;

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

17. Total Oyster Shell Recycling Tax Credit from PART Q, line 1 ......................... 17

18. Total Energy Storage Systems Tax Credit from PART R, line 1 ....................... 18

19. Total More Jobs for Marylanders Tax Credit (See PART CCC, line 9) .................... 19 XXXXXXXXXXX

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

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

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

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

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

25. Total Apprentice Employee Tax Credit from PART Y, line 2 .......................... 25

26. Total Qualified Farms Tax Credit from PART Z, line 1 .............................. 26

27. Total Qualified Veteran Employees Tax Credit from PART AA, line 1 .................... 27

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

29. Carryover of excess credits from PART CC, line 7, of tax year 2017 Form 500CR .......... 29

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

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

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

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

33. Enter tax from:

line 14 of Form 500;

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

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

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

Also enter this amount on line:

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

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

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

19 of Form 505.

COM/RAD-007

MARYLAND

FORM

500CR

BUSINESS INCOME

TAX CREDITS

ATTACH TO FORM 500, 502, 505,

OR 510.

2018

page 8

PART BBB - EXCESS CREDIT CARRYOVER CALCULATION

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

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

2. Add lines 7, 8, 13, 15, 16, 17, 18 and 27 of PART AAA ............................. 2

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

4. Subtract line 2 from line 32 of PART AAA ...................................... 4

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

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

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

PART CCC - REFUNDABLE BUSINESS INCOME TAX CREDITS

1. Total refundable One Maryland Economic Development Tax Credit

from PART P-IV; if more than one project, see instructions .......................... 1

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

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

4. Total Small Business Relief Tax Credit from PART B, line 1 ........................... 4

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

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

7. Total refundable Credit for Investors in Cybersecurity from PART H-I, line 6 .............. 7

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

9. Total More Jobs for Marylanders Tax Credit from PART S, line 1. ........................9

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

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

If you are filing Form 502 or Form 505, enter this amount on line 10 and on

PART CC, line 3 of Form 502CR. If you are filing Form 500 or Form 510, continue to PART DDD . 10

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

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

2. Total refundable business income tax credits from PART CCC, line 10 ................... 2

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

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

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

Maryland Schedule K-1 (510).

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

Electronic Format The paper version of Maryland Form 500CR

is no longer available. You must file your Maryland return

electronically to claim the business income tax credits available

from Form 500CR.

Tax-exempt organizations Organizations that are tax-exempt

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

to claim certain business tax credits against their withholding

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

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

MW508 (Annual Employer Withholding Reconciliation Return). See

Administrative Release 34.

GENERAL INSTRUCTIONS

Purpose Maryland Form 500CR is used to claim the following

business tax credits against corporation and individual income tax.

NON- REFUNDABLE TAX CREDITS Part

Enterprise Zone Tax Credit** A

Maryland Disability Employment Tax Credit** C

Job Creation Tax Credit** D

Community Investment Tax Credit** E

Businesses That Create New Jobs Tax Credit F

Qualied Vehicle Tax Credit** G

Cybersecurity Incentive Tax Credit for Buyers of

Cybersecurity Technology or Cybersecurity Services**

H-II

Employer-Provided Long-Term Care Insurance Tax Credit

Maryland Employer Security Clearance Costs Tax

Credit**

J-I

First-Year Leasing Costs Tax Credit for Qualied Small

Businesses**

J-II

Research and Development Tax Credits for Businesses

Not Certied as a “Small Business”**

K-I

Commuter Tax Credit M

Maryland-Mined Coal Tax Credit** O

Non-Refundable One Maryland Economic Development

Tax Credit**

Oyster Shell Recycling Tax Credit** Q

Energy Storage Systems Tax Credit** R

Wineries and Vineyards Tax Credit** T

Endow Maryland Tax Credit** V

Preservation and Conservation Easements Tax Credit**

Apprentice Employee Tax Credit** Y

Qualied Farms Tax Credit** Z

Qualied Veteran Employees Tax Credit** AA

REFUNDABLE TAX CREDITS Part

Small Business Relief Tax Credit** B

Cybersecurity Incentive Tax Credit for Investors in

Cybersecurity**

H-I

Research and Development Tax Credits for Businesses

Certied as a “Small Business”**

K-II

Biotechnology Investment Incentive Tax Credit** L

Clean Energy Incentive Tax Credit** N

Refundable One Maryland Economic Development Tax

Credit**

More Jobs for Marylanders Tax Credit ** S

Film Production Activity Tax Credit** U

Aerospace, Electronics, or Defense Contract Tax Credit

Heritage Structure Rehabilitation Tax Credit from Form

502S

DDD

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

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

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

must be completed through line 28, Part 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

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

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

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

If you are a PTE claiming the One Maryland Economic Development

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

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

additional reporting requirements unique to the One Maryland

Credit.

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

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

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

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

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

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

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

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

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

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

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

Be sure to check the box as you begin to enter Form 500CR

information into your return. It is important that you provide the

PTE’s Federal Employer Identication Number (FEIN) to ensure your

credit is not disallowed. Check the box on page 1 of Form 500CR

to indicate that credits are from a PTE and enter the PTE’s FEIN.

Include the Maryland Schedule K-1 (510)from the PTEs showing

your share of the credit and any credits passing through to you.

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

parent of a corporation, which in turn passes the information down

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

names in this situation to avoid processing delays.

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

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

of credit for each entity providing credit information.

Exception: Credits received from PTEs If you have received

distributive or pro rata share of tax credits reported on a Maryland

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

for the credit. The amount which you enter in each section should

be carried over to the appropriate elds in the Summary, Parts

AAA, BBB or CCC. In addition, PTE members that are corporations

or PTEs should complete Part DDD.

Credits claimed by both spouses on a joint return Only one

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

both spouses.

Other Information If a FEIN is to be used and has not been

secured, enter “APPLIED FOR” followed by the date of application.

If you have not applied for a FEIN, do so immediately.

Amended Returns You will need to le an electronic Maryland

amended return to make changes affecting Form 500CR.

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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. For the purpose of claiming the credit,

Enterprise zones include Regional Institution Strategic

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

the Economic Development Article. For businesses located in

a focus area (an area within an enterprise zone that is especially

in need) the credit amounts are higher.

Businesses that own, operate, develop, construct or rehabilitate

property intended for use primarily as single or multi-family

residential property are not eligible for the enterprise zone tax

credit.

Qualifying employees are those employees who:

1. Are new employees or employees rehired after being laid

off for more than one year;

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

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

tax year for which a credit is claimed;

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

enterprise zone on activities of the business resulting

directly from its location in the enterprise zone;

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

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

which the enterprise zone was designated or the date on

which the business entity located in the enterprise zone.

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

individual employed by the business in that or the three previous

tax years except an economically disadvantaged employee hired

to replace a previously qualied economically disadvantaged

employee, for whom the business received the corresponding

rst or second-year credit in the immediately preceding tax year.

For information on the location of enterprise zones and focus areas

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

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4041

Economically disadvantaged employees are those who are certied

as such by:

Maryland Department of Labor, Licensing and Regulation

Division of Workforce Development and Adult Learning

1100 N. Eutaw Street

Baltimore, MD 21201

410-767-2047

That office will provide information relating to certification

requirements for such employees.

Specic Requirements

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

enterprise zone but not in a focus area.

Complete Parts A-III and A-IV if the business is located in a focus

area.

PART A-I - Credit for economically disadvantaged employees

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

economically disadvantaged employee for a three-year period

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

limited to the following amounts of wages paid to the economically

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

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

a previously qualied economically disadvantaged employee, the

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

allowed for the replaced employee.

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

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

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

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

year lines.

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

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

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

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

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

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

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

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

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

employee not located in a focus area not provided in Part A-I. The

credit is limited to $1,000 of wages paid and is applicable for only

the rst year the employee was qualied.

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

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

claimed in Part A-I.

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

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

PART A-III - Credit for economically disadvantaged

employees located in a focus area. A credit is allowed for each

new economically disadvantaged employee for a three-year period

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

The credits are limited to the following amounts of wages paid

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

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

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

disadvantaged employee, the credit for the new employee will be

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

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

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

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

number of these qualied employees on their respective second

and third year lines.

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

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

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

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

employee.

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

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

employee.

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

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

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

located in a focus area not provided in Part A-III. The credit is limited

to $1,500 of wages paid and is applicable for only the rst year the

employee was qualied.

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

employees located in a focus area who were not claimed in Part A-III.

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

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

PART A - Summary

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

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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

Development Article.

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

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

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

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

claimed.

This credit is not refundable and is applied only against the

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

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

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

expiration of ve years, whichever comes rst.

Business must include certication with the return which shows

the business is located in a Maryland enterprise zone.

Maryland has more than 30 enterprise zones. Counties and

municipalities are responsible for certifying a business as eligible

for the tax credits. Contact the county or municipal enterprise

zone administrator for more information. The Maryland Department

of Commerce has a list of jurisdictions with enterprise zones on

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

Maryland Enterprise Zones by Region.

PART B – SMALL BUSINESS RELIEF TAX

An individual or a small business that pays earned sick and safe

leave to a qualied employee may be entitled to claim the credit

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

that the qualied employee normally earns. In addition, employees

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

of 1) an amount that equals $500 for each qualied employee; or

2) an amount that equals the total amount of qualied employer

benets accrued by all qualied employees.

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

Ofce of Finance Programs

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

of, qualied employees.

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

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

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

tax return when claiming this tax credit.

For certication or for additional information, contact:

Maryland State Department of Education

Division of Rehabilitation Services

2301 Argonne Drive

Baltimore, MD 21218

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

dors.maryland.gov

o r,

Maryland Department of Labor, Licensing and Regulation

1100 N. Eutaw St., Room 201

Baltimore, MD 21201

410-767-2047

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

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

dened by the Americans with Disabilities Act;

2. Has a disability that presently constitutes an impediment

to obtaining or maintaining employment or to transitioning

from school to work; and,

3. Is ready for employment; or,

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

active duty by the American Armed Forces for a service-

connected disability.

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

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

the business simultaneously receives federal or state employment

training benets.

Qualifying child care expenses are those expenses incurred by

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

gainfully employed.

Transportation expenses are those expenses incurred by a business

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

and from work.

Specic Requirements

PART C-I - Credit for employees with a disability hired. A

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

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

The credit for each disabled employee hired is equal to 30% of

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

$9,000 of qualied second year wages.

The employer is not entitled to claim the credit until employment

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

(a) Voluntarily leaves the employer;

(b) Becomes further disabled or death occurs; or,

the portion of the year the employee worked unless the

employee voluntarily left to take another job.

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

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

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

on the “Second Year” line.

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

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

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

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

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

PART C-II - Credit for Child Care and Transportation

Expenses

An additional credit is allowed for expenses incurred by the

employer for approved day care services for a child or children

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

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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

A credit of up to $900 is allowed for the rst year of employment

and up to $900 for the second year. To verify if a child care center

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

Human Resources, Child Care Administrator for the county or city

in which the child care center is located.

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

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

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

on the “Second Year” line.

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

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

qualied employee with a disability.

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

$900 in child care and transportation expenses per each second

year qualied employee with a disability.

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

PART C - Summary

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

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

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

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

This credit is not refundable and is applied only against the

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

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

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

expiration of ve years, whichever comes rst.

PART D - JOB CREATION TAX CREDIT

General Requirements Certain businesses that create new

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

on the number of qualied positions created.

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

60 qualied positions, 25 qualied positions if the business facility

established or expanded is in a State Priority Funding Area, or 10

qualied positions in a county with an annual average employment

that is less than 75,000 or a median household income that is

less than two-thirds of the statewide median household income.

A qualied position is a full-time position which pays at least 120%

of the State minimum wage, is located in Maryland, is newly created

as a result of the establishment or expansion of a business facility

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

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

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

employee lling a qualied position.

This credit is not refundable and is applied only against the

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

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

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

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

comes rst.

NOTE: For credits certied prior to January 1, 2018, enter

on line 2, Part D, 50% of the amount of the credits from

the prior year.

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

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

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

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

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

in which this occurs.

The amount to be recaptured is the amount originally claimed

multiplied by the percentage reduction in the number of qualied

employees. The credit to be recaptured is reported on line 31, Part

AAA of Form 500CR.

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

this credit.

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

must meet to qualify, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6300

Specic Requirements

PART Job Creation Tax Credit **Must Include Required

Certication

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

For credits certied prior to January 1, 2018 only, 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.

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

after January 1, 2020.

PART E - COMMUNITY INVESTMENT TAX CREDIT

Businesses or individuals who contribute to approved Community

Investment Programs may be eligible for a credit against the

Maryland State income tax. Contributions must be made to a

nonprot organization approved by the Department of Housing

and Community Development (DHCD). The taxpayer must apply

to and receive approval by the DHCD for each contribution for

which a credit is claimed. The credit is limited to 50% of the

approved contributions (including real property) not to exceed

$250,000.

Businesses and PTE members who are eligible to claim the

Community Investment Tax Credit must claim the credit on the

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

Investment Tax Credit and who are not PTE members may claim

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

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

502CR and the Form 500CR.

Individuals who anticipate having a carryover of the Community

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

instead of Form 502CR. Individuals who have an existing

carryover on Part 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.

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

included with Form 500CR.

Specic Instructions

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

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

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

Also, enter this amount on line 5, Part 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

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

whichever comes rst.

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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

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

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

of a county or municipal corporation, certain businesses may be

entitled to an income tax credit.

These credits are based on percentages of the property tax liability

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

(SDAT).

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

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

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

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

Jobs Enhanced Property Tax Credit will enter the amount of income

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

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

entering the result on line 3, Part F.

Also enter this amount on line 6, Part 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

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

whichever comes rst.

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

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

thresholds to qualify for the credit, the credit must be recaptured.

The income tax credit to be recaptured is reported on line 31, Part

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

in which the business failed to satisfy the applicable thresholds.

For more information contact:

State Department of Assessments and Taxation

301 W. Preston Street

Baltimore, MD 21201-2395

410-767-1191

taxcredits@maryland.gov

PART G - QUALIFIED VEHICLE TAX CREDIT (TRACTOR-

TRAILER VEHICLE REGISTRATION TAX CREDIT)

General requirements A credit is allowed for the expense of

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

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

the Transportation Article that is titled and registered in Maryland.

Upon approval of an application by an individual or business, the

Maryland Motor Vehicle Administration (MVA) will issue a tax

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

registered during the taxable year. The aggregate amount of

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

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

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

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

exceed the State income tax for the taxable year.

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

Business Tax Credit Summary, Part AAA, line 7.

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

forward to any other taxable year.

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

with your tax return when claiming this tax credit.

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

after January 1, 2020.

PART H - CYBERSECURITY INCENTIVE TAX

CREDITS

PART H-I Refundable Credit for Investors in Cybersecurity

General Requirements A credit is available for an investment

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

credit is claimed by a qualied investor. A qualied investor is

an individual or entity that invests at least $25,000 in a QMCC

that is required to le an income tax return in any jurisdiction.

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

investment) for the purpose of conducting business for prot,

and must be engaged primarily in the development of innovative

and proprietary cybersecurity technology.

The QMCC must:

• Have its headquarters and base of operations in Maryland;

• Have not participated in the tax credit program for more

than 1 prior scal year;

• Have 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

interest shall vest in the qualied investor. “Qualied investor”

means an individual or entity that is required to le an income

tax return in any jurisdiction and invests at least $25,000 in a

QMCC. However, the qualied investor may not, after making the

investment, own or control more than 25% of the equity interest

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

At least 30 days prior to making an investment in a QMCC, a

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

qualied investor must submit an application to the Maryland

Department of Commerce for an initial tax credit certicate.

At least 30 days prior to receiving an investment the QMCC

must submit an application to the Maryland Department of

Commerce to evidence that the QMCC has satised the minimum

requirements for consideration as a QMCC.

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438

Specic Requirements

Based on the actual amount of the investment made by a qualied

investor, the Maryland Department of Commerce will issue a

nal tax credit certicate to the qualied investor. The qualied

investor may claim the tax credit for the amount provided in the

nal certicate. If the credit exceeds the tax due, then a refund

for the excess amount may be claimed. The credit cannot be

claimed until the date of issuance of the nal certicate. It must

be claimed on the Maryland income tax return for the tax year in

which the investment is made in the QMCC.

A copy of the nal certicate received from the Maryland

Department of Commerce is required to be included with your

return for the tax credit to be allowed. Complete Part H-I using

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

amount of the approved investment on line 1.

On line 2, Part H-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.

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

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

County, Dorchester County, Garrett County or Somerset County,

enter $500,000.

On line 4, Part H-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

the time you electronically le your income tax return.

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

claimed; 1) the qualied investor sells, transfers or otherwise

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

organized and existing within 4 months of receiving the qualied

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

during the rst year after the close of the tax year for which

the tax credit is claimed; or

• 33%, if the event requiring recapture of the credit occurs

more than 1 year but not more than 2 years after the close of

the tax year for which the tax credit is claimed. The amount

of recapture is entered onto line 5, Part H-I.

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

is rescinded by the Maryland Department of Commerce due to

the qualied investor failing to provide the required notice to

the Maryland Department of Commerce of having made the

investment, or if the Maryland Department of Commerce revokes

the nal certication due to false representations made in

connection with the application for the certication.

Pass-through Entities If the credit is claimed by a qualied

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

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

other required attachments for members to be permitted to claim

the credit. See Form 510 instructions.

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

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

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

the Maryland Department of Commerce and Maryland Schedule

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

PART H-II – NONREFUNDABLE CREDIT FOR BUYERS OF

CYBERSECURITY TECHNOLOGY AND/OR CYBERSECURITY

SERVICES

A qualied buyer may claim a credit in an amount equal to

50% of the cost incurred during the taxable year to purchase

cybersecurity technology and/or a cybersecurity services from

one or more qualied sellers. For any taxable year, the credit

allowed may not exceed $50,000 for each qualied buyer; and

the aggregate credits claimed for cybersecurity technology and/

or cybersecurity services purchased from a single qualied seller

may not exceed $200,000.

A “Cybersecurity Business” means an entity organized for prot

that is engaged primarily in the development of innovative

and proprietary cybersecurity technology or the provision of

cybersecurity service.

A “cybersecurity service” is an activity that is associated with

a category or subcategory identied under the framework

core established by the National Institute of Standards and

Technology’s Cybersecurity Framework.

A “cybersecurity technology” means products or goods intended

to detect or prevent activity intended to result in unauthorized

access to, exltration of, manipulation of, or impairment to the

integrity, condentiality, or availability of an information system

or information stored on or transiting an information system.

A “Qualied Buyer” means any entity that has fewer than 50

employees in the State and that is required to le an income tax

return in the State.

A “Qualied Seller” means a cybersecurity business that:

• 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

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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.

A qualied buyer eligible for the credit may apply to the Maryland

Department of Commerce for a credit certicate that states the

amount of the credit the qualied buyer may claim. A qualied

buyer must attach a copy of the credit certicate to the income

tax return on which the qualied buyer claims the credit. The

Maryland Department of Commerce approves each application

that qualies for a credit certicate.

Subject to Recapture The Maryland Department of Commerce

may revoke its certication of a credit if any representation

made in connection with the application for the certication is

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.

For information on the qualications and application process,

contact:

Maryland Department of Commerce

Abigail McKnight

Tax Specialist

Ofce of Finance Programs

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-

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

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

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

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

but cannot be more than $5,000.

Specic Instructions

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

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

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

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

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

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

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

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

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

comes rst.

PART J – MARYLAND EMPLOYER SECURITY CLEARANCE

COST (ESCC) TAX CREDIT

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

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

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

the Maryland Department of Commerce.

PART J-I – Credits for Sensitive Compartmented Information

Facilities (SCIFs) and Security Clearance Administrative

Expenses

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

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

Maryland. The SCIF must be accredited by the appropriate federal

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

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

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

per calendar year.

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

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

clearance administrative expenses.

Qualied expenses include:

• Processing application requests for federal security clearance;

• Maintaining, upgrading or installing computer systems in

Maryland that are required to obtain federal security clearance;

and,

• Training employees in the State to administer the clearance

application process.

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

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

in Part J-I, line 3.

Claiming the Tax Credit

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

to the Maryland Department of Commerce by September 15th

following the tax year in which the related expenses and costs

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

Department of Commerce will certify the approved amount. To

claim the credit, the applicant must: 1) le an electronic Maryland

income tax return with the Comptroller of Maryland for any taxable

year after the taxable year in which the costs were incurred; or 2)

le an electronic amended Maryland income tax return with the

Comptroller of Maryland. A copy of the Maryland Department of

Commerce certication must be included with the return.

The business will enter the Maryland Department of Commerce-

certied amount of construction and equipment costs incurred to

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

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

Security Clearance Administrative expenses, not to exceed

$200,000.

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

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

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

Qualied Small Businesses

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

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

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

perform security-based contracting work.

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

First Year Leasing Costs Tax Credit approved by the Maryland

Department of Commerce.

The total ESCC tax credit approved by the Maryland Department

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

the total amount of credits applied for by all businesses exceeds

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

Excess credit may be carried forward until the excess amount is

fully used.

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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

after January 1, 2022.

For more information, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-4041 or 410-767-6438

PART K - RESEARCH AND DEVELOPMENT TAX CREDITS

Businesses that incur qualied research and development expenses

in Maryland may be entitled to tax credits. The total of research

and development credits for all businesses may not exceed

$12,000,000 per year.

To claim the credit, the applicant must: 1) le an electronic

Maryland income tax return with the Comptroller of Maryland

for any of the 7 taxable years after the taxable year in which

the expenses were incurred; or 2) le an electronic amended

Maryland income tax return with the Comptroller of Maryland.

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

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

and development expenses were paid. For certication and more

information contact the Maryland Department of Commerce.

Certication must be obtained from the Maryland Department

of Commerce before the credit can be claimed. A copy of the

certication from the Maryland Department of Commerce must

be included with the return.

PART K-I – Research and Development Tax Credits for

Businesses Not Certied as a “Small Business”

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

Maryland research and development expenses paid during the

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

Maryland research and development expenses paid during the tax

year that exceed the base amount.

Claiming the Tax Credit

The business will enter the Maryland Department of Commerce-

certied Basic Credit (3%) on line 1, Part K-I.

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

Maryland Department of Commerce-certied Growth Credit (10%).

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

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

modication on the tax return.

PART K-II – Research and Development Tax Credits for

Businesses Certied as a “Small Business”

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

Credit as a “Small Business,” the credit is calculated in basically

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

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

liability company, partnership or sole-proprietorship with net

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

year for which the Maryland qualied research and development

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

than $5,000,000.

Claiming the Tax Credit

The business will enter the Maryland Department of Commerce-

certied Basic Credit (3%) on line 4, Part K-II.

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

Maryland Department of Commerce-certied Growth Credit (10%).

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

amount is carried to line 6, Part CCC. Also, this amount is an

addition modication on the tax return.

For certication and further information contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-4980 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

for prot, and must be primarily engaged in, or within 2 months

will be primarily engaged in, the research, development, or

commercialization of innovative and proprietary technology that

comprises, interacts with, or analyzes biological material including

biomolecules (DNA, RNA, or protein), cells, tissues or organs.

QMBC Requirements

The QMBC must:

• Have its headquarters and base of operations in Maryland;

• Have fewer than 50 full-time employees;

• Have been in active business no longer than 12 years;

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

Maryland Department of Commerce; and,

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

A QMBC includes:

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

with the Maryland Department of Commerce approval;

• A company that has been in active business no longer than 12

years from the date the company rst received a qualied

investment under this section; or,

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

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

meet the requirements of a QMBC may result in revocation

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

already claimed by the qualied investor.

The investor:

• Can be an individual or any entity (except a retirement plan),

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

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

company after making the investment);

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

jurisdiction; and,

• Must apply for and receive nal certication from the Maryland

Department of Commerce to claim the Biotechnology

Investment Incentive Tax Credit.

The amount of the credit is 50% of the investment in the qualied

Maryland biotechnology company, not to exceed $250,000. For

a QMBC located in Allegany County, Dorchester County, Garrett

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

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

investment must be the contribution of money in cash or cash

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

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

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

title to which ownership shall vest in the qualied investor. The

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

Article and Code of Maryland Regulations 24.05.03.

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-2368 or 410-767-6438

Specic Requirements

The investor may claim the tax credit for the amount provided

in the nal certicate. If the credit amount exceeds the tax due,

then a refund for the excess amount may be claimed. The credit

cannot be claimed until the date of issuance of the nal certicate.

It must be claimed on the Maryland income tax return for the tax

year in which the investor makes the investment in the QMBC.

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

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

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

the Biotechnology Investment Incentive Tax Credit to be allowed.

Complete Part L using the information provided in the nal

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

line 1.

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

QMBC located in Allegany County, Dorchester County, Garrett

County or Somerset County, enter 75% of the approved investment.

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

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

County, Dorchester County, Garrett County or Somerset County,

enter $500,000.

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

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

Required Statement and Recapture of Credit.

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

than zero, enter a negative amount.

Enter the amount from line 6, Part L, on line 2, Part 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 afdavit must include the Taxpayer Identication Number and

name of the investor, signature of the investor under penalties of

perjury (or its authorized representative), and date.

The statement of afdavit must stipulate that if, within 2 years

after the close of the tax year for which the credit is claimed, (1)

the investor sells, transfers or disposes of the ownership interest

in the QMBC, for which this tax credit was certied, or, (2) the

QMBC ceases operating as an active business with its headquarters

and base of operations in Maryland, the investor must notify the

Comptroller by reporting the applicable recapture amount on the

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

causing the recapture occurred.

The applicable recapture amount is calculated by multiplying the

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

or other disposition of the ownership interest, the portion of the

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

of the following percentages:

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

during the tax year for which the tax credit is claimed;

• 67%, if the event requiring recapture of the credit occurs

during the rst year after the close of the tax year for which

the tax credit is claimed; or,

• 33%, if the event requiring recapture of the credit occurs more

than 1 year but not more than 2 years after the close of the

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

recapture is entered onto line 5, Part L.

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

certicate is rescinded by the Maryland Department of Commerce

due to the investor failing to provide the required notice to

the Maryland Department of Commerce of having made the

investment, or if the Maryland Department of Commerce revokes

the nal certicate due to false representations made in connection

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

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

Department of Commerce because a company failed to satisfy the

requirements of a QMBC within 2 months. See Code of Maryland

Regulations 24.05.03 for rescission and revocation procedures.

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

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

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

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

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

that earned the Biotechnology Investment Incentive Tax Credit

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

all other required attachments for members to be permitted to

claim the credit. See Form 510 instructions.

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

must complete the Form 500CR section of their electronically-

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

certication from the Maryland Department of Commerce and

statement of afdavit; and Maryland Schedule K-1 (510) showing

the allocated share of credit amount.

PART M - COMMUTER TAX CREDIT

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

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

employees.

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

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

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

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

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

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

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

also are qualied commuter benets.

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

in a vanpool. The vanpool vehicle must seat at least 6 adults and

be used primarily to transport employees between home and the

workplace.

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

benets or $100 per month for each employee.

Specic Instructions

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

paid on behalf of employees.

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

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

commuter benets were paid.

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

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

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

credit amount.

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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

www.commuterchoicemaryland.com

PART N - CLEAN ENERGY INCENTIVE TAX CREDIT

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

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

through 12/31/2018 and produces electricity during the tax year

primarily using qualied energy resources derived from:

• Wind

• Open and Closed Loop Biomass

• Geothermal

• Solar

• Small Irrigation

• Municipal Solid Waste

• Qualied Hydropower

The credit is 0.85 cents for each kilowatt hour of electricity

produced at a Maryland facility using qualied energy resources

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

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

Administration before claiming this credit.

Specic Instructions

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

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

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

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

initial credit certicate.

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

this amount on line 3, Part CCC.

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

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

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

may be claimed.

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

Maryland Energy Administration

1800 Washington Blvd, Ste. 755

Baltimore, MD 21230

Note: A copy of the certification by the Maryland Energy

Administration must be included.

PART O - MARYLAND-MINED COAL TAX CREDIT

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

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

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

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

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

to the public service company franchise tax. The credit is $3 for

each ton of Maryland-mined coal purchased in the current tax year.

Specic Instructions

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

purchased in the current year.

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

also on line 15, Part 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.

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

of Assessments and Taxation.

For more information contact:

State Department of Assessments and Taxation

301 W. Preston Street

Baltimore, MD 21201-2395

410-767-1191

taxcredits@maryland.gov

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

Assessments and Taxation must be included.

PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX

CREDIT CERTIFIED AFTER JUNE 30, 2018

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

least 50 newly hired qualied employees must be employed for at

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

organizations that are qualied business entities against their

unrelated business taxable income.

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

P for each project.

For information on Tier I counties, qualied employees, eligible

costs and other requirements businesses must satisfy to qualify

for credit, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

A business cannot be certied as a qualied business entity by

the Secretary of the Maryland Department of Commerce unless

the business noties the Maryland Department of Commerce of its

intent to seek certication before hiring any qualied employees

to ll the qualied positions.

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.

Failure of the qualied business entity to report the amount claimed

disqualies the entity from claiming any unclaimed amount of the

project tax credit.

For any taxable year, if a qualied business entity claims the

project tax credit, the qualied business entity cannot also claim

a Job Creation Tax Credit authorized under Section 6-304 of the

Maryland Economic Development Article.

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

project costs must follow the additional instructions following Part

P–IV Summary.

Note: A qualied business entity, which has been certied for the

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

number of qualied positions falls below the minimum number of

qualied positions required to qualify for the project tax credit, but

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

does not fall below 10, and (2) the qualied business entity has

maintained at least the minimum number of qualied positions

required to qualify for the project tax credit for at least ve years.

PART P-I - CALCULATION OF TAXABLE INCOME,

WITHHOLDING, QUALIFIED EMPLOYEES AND TAX LIABILITY

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

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

members only and should reect a member’s distributive or pro

rata share of the reported items, except lines 2a through 2c (see

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

only Sections A and C of Part P-I.

Read the Special Instructions-I For Qualied Entities That

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

PTE members must read the Special Instructions-II For Members

Of Qualied Business Entities That Are Pass-Through Entities

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.

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

taxable net income from the PTE on line 1.

Enter on line 2a the number of qualied employees. This number

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

on Maryland Schedule K-1 (510) to all PTE members.

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

Generally, this is a position that is full-time and of indenite

duration, is paid at least 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.

Note: 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.

Enter a “Yes” or a “No” to the question on line 2b, whether the

qualied business entity had maintained at least the minimum

number of qualied positions required to qualify for the project tax

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

of employees entered on line 2a is fewer than the minimum

number of qualied positions required to qualify for the project tax

credit, a credit may not be claimed for this year. The minimum

number of qualied positions is 50 to qualify for the project tax

credit having the maximum amount of $5,000,000. The minimum

number of qualied positions is 25 to qualify for the project tax

credit having the maximum amount of $2,500,000. The minimum

number of qualied positions is 10 to qualify for the project tax

credit having the maximum amount of $1,000,000.

Calculate the prorate factor on line 2c. If line 2a is greater than

or equal to the minimum number of qualied positions required

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.

Enter on line 3 the amount of Maryland income tax the qualied

business entity was required to withhold during this tax year

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

General Article.

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

other taxpayers complete Part B.

Section B

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 not a PTE member

of a qualied business entity); or,

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

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

of a qualied business entity).

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

multiply the amount on line 1, Section A, by the highest rate

used to calculate the tax on your Maryland tax return. Enter

this amount on line 6a.

Enter on line 4b the amount calculated by multiplying line 4a by

line 2c.

Section C

Note: 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.

Project costs Eligible project costs are the costs and expenses that

a qualied business entity incurs to acquire, construct, rehabilitate,

install, or equip the eligible economic development project.

Enter on line 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

of qualied employees. The total eligible project costs must be

at least $500,000, and cannot exceed the allowable maximum.

PTEs stop here. 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

against the State income tax on the taxable income of the qualied

business entity until the earlier of the full amount of excess eligible

project costs is used, or until the 10th taxable year following the

taxable year in which the qualied business entity claims the tax

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

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

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

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

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

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

of your Maryland State income tax liability on the taxable income

of the qualied business entity.

Enter on line 9 the amount of the eligible Maryland State income

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

tax liability attributable to the income of the qualied business

entity (line 4b).

Enter on line 10, the lesser of line 8 or line 9. This amount is the

“Credit against tax on the income of the qualied business entity.”

PART P-III - REFUNDABLE ONE MARYLAND ECONOMIC

DEVELOPMENT TAX CREDIT

Generally, at any time after the 4th taxable year in which the

qualied business entity claims the project tax credit, the business

may request a refund of any excess credit.

For any taxable year, the total amount claimed as a refund must

not exceed the amount of tax that the qualied business entity

is required to withhold for the taxable year from the wages of

qualied employees under Section 10-908 of the Maryland Tax-

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

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

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.

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

Department of Commerce must be included.

SPECIAL INSTRUCTIONS-I FOR QUALIFIED BUSINESS

ENTITIES THAT ARE PASS-THROUGH ENTITIES (PTEs)

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

corporation, or business trust) must complete the Form 500CR

section of the electronic PTE income tax return, Form 510.

PTEs must provide the following information on Form 500CR if

they are eligible for the One Maryland Economic Development

Tax Credit:

1. Maryland taxable income;

2. Number of qualied employees;

3. If the number of employees is fewer than the minimum

number of qualied employees required to qualify for the

project tax credit, a PTE must state whether or not the qualied

business entity had lled the minimum number of qualied

positions required to qualify for the project tax credit for at

least ve years from the time they have been eligible for the

credit;

4. Amount of Maryland income tax required to be withheld from

these qualied employees;

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

K-1 whether or not the PTE is a qualied business entity which

would be entitled to pass on a refundable credit or whether the

credit is nonrefundable only. The PTE must provide a copy of the

nal certication to each member.

SPECIAL INSTRUCTIONS-II FOR MEMBERS OF QUALIFIED

BUSINESS ENTITIES THAT ARE PASS-THROUGH ENTITIES

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

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

500CR section of their electronic Maryland income tax return, to

claim the One Maryland Economic Development Tax Credit. The

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

compute the credit amounts and claim any of the credits allowed

for the tax year.

For the sections in Part P-I, the member would only complete

Column 2.

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

must limit the amounts claimed for the project credit 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.

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

member’s share of items as reported on the Maryland Schedule

K-1 (510).

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

preceding instructions for the respective parts.

Note: The member must include a copy of the PTE’s nal credit

certication to claim the credit.

PART P - ONE MARYLAND ECONOMIC DEVELOPMENT TAX

CREDIT CERTIFIED BEFORE JULY 1, 2018

General requirements Credits may be claimed for eligible project

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

or expand a business facility in a distressed Maryland county. To

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

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

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

at the new or expanded facility.

This credit may also be claimed by tax-exempt nonprofit

organizations that are qualied business entities against their

unrelated business taxable income.

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

P for each project.

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

costs and other requirements, businesses must satisfy to qualify

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

for credit, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4980

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

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

instructions following Part P–IV Summary.

Note: For tax years beginning after December 31, 2010, a qualied

business entity, which has been certied for the tax credit, may

claim a prorated share of this credit, if: (1) the number of qualied

positions falls below 25, but does not fall below 10, and (2) the

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

positions for at least ve years.

PART P-I - CALCULATION OF TAXABLE INCOME, WITHHOLD-

ING, QUALIFIED EMPLOYEES AND TAX LIABILITY

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

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

members only and should reect a member’s distributive or pro

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

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

only Sections A and C of Part P-I.

Read the Special Instructions-I For Qualied Entities That

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

PTE members must read the Special Instructions-II For Members

Of Qualied Business Entities That Are Pass-Through Entities

BEFORE completing Part P-I.

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

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

taxable income”) from the Maryland taxable income not associated

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

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

economic development project.

For taxpayers that are not PTE members, enter your Maryland

taxable net income from your return on line 1.

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

taxable net income from the PTE on line 1.

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

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

To calculate the project taxable income, proceed as follows:

1. If the project is a totally separate facility, then project

income is gured by using separate accounting, reecting

only the gross income, deductions, expenses, gains, and

losses directly attributable to the facility and overhead

expenses apportioned to the facility.

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

facility, then gure net income attributable to the entire

facility by using separate accounting reecting only the

gross income, deductions, expenses, gains, and losses

directly attributable to the facility and overhead expenses

apportioned to the facility and net income attributable to

the project. Next, gure the project income by apportioning

the entire facility income to the project.

Or,

3. If separate accounting method is shown to be not

practicable, use an alternate method approved by the

Comptroller of Maryland or the Maryland Department of

Commerce.

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

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

0, enter 0.

Enter on line 4a the number of qualied employees. This number

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

on Maryland Schedule K-1 (510) to all PTE members.

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

Generally, this is a position that is full-time and of indenite

duration, is paid at least 150% of the federal minimum wage, is

located in a qualied distressed Maryland county, and is newly

created as a result of the establishment of a business facility.

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

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

credit for this year.

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

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

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

number of employees entered on line 4a is fewer than 25, a credit

may not be claimed for this year.

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

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

or equal to 25, enter 1.000000.

A PTE will report the same numbers and information that appear

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

Maryland Schedule K-1 (510). Do not report the distributive share

of this information on the K-1.

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

business entity was required to withhold during this tax year

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

General Article.

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

other taxpayers complete Part B.

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

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

on project taxable income (the amount computed on line 2, Section

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

amount on line 3, Section A).

Enter on line 6:

• The total tax liability from line 14 of Maryland Corporation

Form 500;

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

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

member of a qualied business entity); or,

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

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

of a qualied business entity).

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

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

calculate the tax on your Maryland tax return. Enter this amount

on line 6.

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

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

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

tax on their individual returns if they have no other reasonable

basis for determining the tax amount.

PTE members of qualied business entities must multiply the

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

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

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

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

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

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

have been eligible for this tax credit.

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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

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

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

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

than 0, enter 0.

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

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

Section C

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

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

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

Project costs Eligible project costs are the costs and expenses that

a qualied business entity incurs to acquire, construct, rehabilitate,

install, or equip the eligible economic development project.

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

economic development project.

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

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

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

Start-up costs Eligible start-up costs to furnish and equip a

new or expanding location for ordinary business functions and

those expenses for moving costs, separation costs, and any other

expenses directly related to a move from an existing non-Maryland

location to a location in a qualied distressed Maryland county.

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

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

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

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

exceed $500,000.

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

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

multiplied by $10,000.

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

PART P-II - CREDITS AGAINST TAX LIABILITY AND TAX ON

INCOME FROM THE PROJECT

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

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

for PTEs.

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

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

years for the One Maryland Economic Development Tax Credit.

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

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

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

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

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

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

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

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

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

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

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

locates in a qualied distressed county.

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

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

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

refundable portions.

Section A - Project Costs Tax Credit

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

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

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

years, and any refundable tax year amounts.

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

the result is 0 or less, enter 0.

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

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

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

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

of your Maryland State income tax liability on the project taxable

income.

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

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

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

the “Credit against tax on income from the project.”

Section B - Start-up Costs Tax Credit

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

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

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

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

refundable credit).

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

the result is 0 or less, enter 0.

The amount calculated on line 19 is the excess amount available

to be claimed by the qualied business entity as a start-up credit.

On line 20, enter the lesser of line 13 or line 19. The start-up credit

is equal to the lesser of the amount on line 19 or line 13 (qualied

employees multiplied by $10,000).

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

the result is 0 or less, enter 0.

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

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

the qualied business entity’s Maryland State income tax liability.

If a project credit was claimed in Part P-II, then the amount of

the start-up credit on line 22 is limited to the remaining Maryland

State income tax liability after taking the nonrefundable project

credit (line 21).

PART P-III - REFUNDABLE ONE MARYLAND ECONOMIC

DEVELOPMENT TAX CREDIT

Generally, at any time after the 4th tax year but before the

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

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

business may apply the excess to the entity’s total Maryland State

income tax liability and may request a refund of any excess credit.

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

the federal minimum wage, then the refundable years will begin

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

Section A - Project Costs

The refundable portion of the project credit for the tax year is

calculated after the nonrefundable portions of the credit are

claimed.

The refundable portion is calculated by subtracting the amount

allowed as the nonrefundable portion of this credit (line 17, Part

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

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

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

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

This amount is the remaining excess eligible project costs for the

eligible economic development project. This project credit amount

is applied against the remaining, available State income tax liability.

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

This section is used to calculate the portion of the nonrefundable

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

project taxable income during the refundable tax years of the One

Maryland Economic Development Tax Credit.

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

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

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

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

amount of tax available for application of the tax credit.

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

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

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

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

result is 0 or less, enter 0.

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

excess project credit amount exceeds the State income tax liability.

The refundable portion is limited to the amount of Maryland income

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

employees (line 5).

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

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

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

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

year. Calculate this amount by subtracting line 26 from line 28

(if less than 0, you will use 0) and enter that result or line 27,

whichever is less.

Section B - Start-up Costs

The refundable portion of the startup credit is calculated after the

nonrefundable portion of this credit is claimed.

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

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

amount for start-up costs.

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

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

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

The tentative refund is the amount of the remaining excess start-up

credit. The refundable portion of the start-up credit is limited to

the amount of Maryland income tax withheld during this tax year

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

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

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

PART P-IV - SUMMARY

Complete the summary of credit amounts claimed for the project

credits and start-up credit for the One Maryland Economic

Development Tax Credit.

Enter on line 35 the nonrefundable portions of the project and

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

nonrefundable One Maryland Economic Development Tax Credit.

This amount should also be entered on line 16, Part BB. Add lines

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

refundable One Maryland Economic Development Tax Credit.

This amount should also be entered on line 1, Part DD.

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

Department of Commerce must be included.

SPECIAL INSTRUCTIONS-I FOR QUALIFIED BUSINESS

ENTITIES THAT ARE PASS-THROUGH ENTITIES (PTEs)

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

corporation, or business trust) must complete the Form 500CR

section of the electronic PTE income tax return, Form 510.

PTEs must provide the following information on Form 500CR if

they are eligible for the One Maryland Economic Development

Tax Credit:

1. Maryland taxable income;

2. Maryland taxable income from the project;

3. Non-project taxable income;

4. Number of qualied employees;

5. If the number of employees is fewer than 25 employees, a

PTE must state whether or not the qualied business entity

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

the time they have been eligible for the credit;

6. The tax year the project was put into service;

7. Amount of Maryland income tax required to be withheld from

these qualied employees;

8. Total eligible project costs;

9. $5,000,000 maximum;

10. Total eligible start-up costs;

11. $500,000 maximum.

Therefore, a PTE must complete Sections A and C of Part P-I. The

distributive or pro rata portion of these items must be furnished

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

Schedule K-1 (510). The PTE also must indicate on the Schedule

K-1 whether or not the PTE is a qualied business entity which

would be entitled to pass on a refundable credit or whether the

credit is nonrefundable only. The PTE must provide a copy of the

nal certication to each member.

SPECIAL INSTRUCTIONS-II FOR MEMBERS OF QUALIFIED

BUSINESS ENTITIES THAT ARE PASS-THROUGH ENTITIES

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

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

500CR section of their electronic Maryland income tax return, to

claim the One Maryland Economic Development Tax Credit. The

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

compute the credit amounts and claim any of the credits allowed

for the tax year.

For the sections in Part P-I, the member would only complete

Column 2.

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

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

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

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

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

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

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

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

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

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

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

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

8a is less than 0, enter 0. Line 8a also is further prorated by the

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

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

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

Maryland Schedule K-1 (510).

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

preceding instructions for the respective parts.

Note: The member must include a copy of the PTE’s nal credit

certication to claim the credit.

PART Q – OYSTER SHELL RECYCLING TAX CREDIT

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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.

Any unused credit amount for the tax year may not be

carried forward to any other tax year.

To claim the credit, an individual or corporation must submit

certication from the Maryland Department of Natural Resources,

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

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

17, Part AAA, Business Tax Credit Summary.

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

after January 1, 2023.

For additional information, contact:

Maryland Department of Natural Resources

Tawes State Ofce Building

580 Taylor Avenue

Annapolis, MD 21401

410-260-8300

PART R - ENERGY STORAGE SYSTEMS TAX CREDIT

The credit is for certain costs to install an energy storage

system paid or incurred during the taxable year.

“Energy storage system” means a system used to store electrical

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.

You must obtain a tax credit certicate from Maryland Energy

Administration before claiming this credit. A copy of the

certication by the Maryland Energy Administration must be

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.

The credit may not be claimed for an energy storage system

installed before January 1, 2018, or after December 31,

2022.

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

based on the total amount of wages paid for each qualied position

at an eligible facility. The eligible business must be conducting or

operating a trade or business that is primarily engaged in activities

that, in accordance with the North American Industrial Classication

System (NAICS), United States Manual, United States Ofce of

Management and Budget, 2012 Edition, would be included in Sector

31, 32, or 33. The eligible business cannot be a rener, as dened

in Section 10-101 of the Business Regulation Article.

A qualied position is full–time and of indenite duration, pays at

least 120% of the State minimum wage, is located in a facility,

is newly created at a single facility in the State and is lled. A

qualied position does not include a position that is (i) created

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

State if the position is not a net new job in the State; or (v) lled

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

program and be certied by the Maryland Department Commerce

as a Qualied Business Entity. Qualied Business Entities may

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

least ve qualied positions at the project location.

An existing business entity may apply to the Maryland Department

of Commerce to enroll its project in the More Jobs for Marylanders

program and be certied by the Maryland Department of Commerce

as a Qualied Business Entity. Qualied Business Entities may

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

at least ve qualied positions at the project location; or (2) is in

a Tier II county and the business entity intends to create at least

10 qualied positions at the project location.

Note: The income tax credit may be claimed by a Qualied Business

Entity for up to 10 consecutive benet years. However, if the

number of qualied positions at the eligible project decreases to a

number less than the number established in the rst benet year,

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

the amount stated in the nal tax credit certicate approved by

the Maryland Department of Commerce for an eligible project. The

amount of the credit authorized is equal to the product of 5.75%

and the total amount of wages paid for each qualied person at

an eligible project.

If the tax credit allowed in any taxable year exceeds the total

tax otherwise payable by the qualied business entity for that

taxable year, the qualied business entity may claim a refund in

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

due to false representations made by a qualied business entity

determined to have been false when made.

For questions on qualications for the credit, Tier I or Tier II

counties, application and certication processes or for additional

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

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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

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

credits awarded to each business depends on the amount of

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

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

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

the certied applicants.

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

business for the purchase and installation of equipment or

agricultural materials for use in the production of agricultural

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

that may be considered is available on the Maryland Department

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

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

construction costs, and general supplies are NOT eligible expenses.

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

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

available from the Maryland Department of Commerce Web site.

The business must submit an application, report of expenses and

supporting documents to the Maryland Department of Commerce

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

tax year in which the expenses were incurred. The Maryland

Department of Commerce will review the application package and

will certify the amount of tax credit the taxpayer may claim by

December 15th of the same year.

To claim the credit, the business must: 1) File an electronic

Maryland income tax return with the Comptroller of Maryland

for any taxable year after the taxable year in which the qualied

capital expenses were incurred; or 2) File an electronic amended

tax return with the Comptroller of Maryland for the year in which

the expenses were incurred. A copy of the certication from the

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.

If the Wineries and Vineyards Tax Credits exceed the State income

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

15 years.

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

after January 1, 2021.

For additional information, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-767-4041

PART U - FILM PRODUCTION ACTIVITY TAX CREDIT

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

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

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

approved by the Maryland Department of Commerce.

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

the qualied lm production entity for that tax year, the qualied

lm production entity may claim a refund in the amount of the

excess.

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

a qualied lm production entity shall apply with the Maryland

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

estimated production costs. Generally to qualify as a lm production

entity, the estimated total direct costs incurred in Maryland must

exceed $250,000. However, for a Maryland small or independent

lm entity to qualify as a lm production entity, the estimated total

direct costs incurred in Maryland must exceed $25,000 and at least

50% of the lming of the lm production activity must occur within

Maryland. The credit claimed cannot exceed the amount stated in

the nal certicate.

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

Maryland Department of Commerce. This amount is also entered

on line 5, Part CCC.

For additional information, contact:

Catherine Batavick, Deputy Director

Maryland Film Ofce

Maryland Department of Commerce

401 E. Pratt St., 14th Floor

Baltimore, MD 21202

410-767-6342

catherine.batavick@maryland.gov

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

Commerce must be included.

PART V - ENDOW MARYLAND TAX CREDIT

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

endowment fund at an eligible community foundation may be

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

taxpayer must apply to the Maryland Department of Housing

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

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

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

Individuals who are eligible to claim the Endow Maryland Tax

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

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

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

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

this credit must claim the credit on Business Income Tax Credit

Form 500CR.

Individuals who anticipate having a carryover of the Endow

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

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

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

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

permanent endowment fund.

Line 2 - Enter 25% of line 1.

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

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

an excess carryover of the credit until it is used, or it expires ve

years after the credit was earned, whichever comes rst.

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

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

For more information contact:

Department of Housing and Community Development

Division of Neighborhood Revitalization

2 N. Charles St., Suite 450

Baltimore, MD 21202

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

410-209-5800 or 410-209-5809

endowmaryland.nr@maryland.gov or karen.forbes@maryland.gov

PART W - AEROSPACE, ELECTRONICS, OR DEFENSE

CONTRACT TAX CREDIT

General Requirements Businesses or individuals who operate

an Aerospace, Electronics, or Defense Contract Tax Credit Project

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

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

for an Aerospace, Electronics, or Defense Contract Tax Credit

Project. The maximum credit amount is $2,500,000 per Aerospace,

Electronics, or Defense Contract Tax Credit Project.

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

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

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

in Maryland that is certied by the Maryland Department of

Commerce as qualifying for the income tax credit. A government

entity does not qualify for the Aerospace, Electronics, or Defense

Contract Tax Credit.

A business entity operating a project must create or retain at

least 10,000 qualied positions in Maryland and submit a budget

evidencing the business entity will expend at least $25,000,000 in

qualifying expenditures in Maryland during the credit year for the

project to be certied by the Maryland Department of Commerce as

an Aerospace, Electronics, or Defense Contract Tax Credit Project.

A qualied business entity may receive up to three designations

for Aerospace, Electronics, or Defense Contract Tax Credit Projects

in a scal year.

A qualied position is a full-time position of indenite duration

with an annual salary of at least $85,000, including associated

benets, is located in Maryland, is created or retained as a result

of the Aerospace, Electronics, or Defense Contract Tax Credit

Project of the qualied business entity and is lled. A qualied

position does not include a position that is lled for a period of

less than 12 months.

Qualied expenditures are capital expenditures that have been

expended or will be expended by a qualied business entity and

that the Maryland Department of Commerce determines have

met the requirements for an Aerospace, Electronics, or Defense

Contract Tax Credit Project.

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438

Claiming the Tax Credit

Line 1 - Enter the number of qualied employees employed during

the credit year.

Line 2 - Multiply line 1 by $250 and enter the result on line 2.

Line 3 – This line reects the maximum dollar amount per project

($2,500,000) and no entry is made on this line.

Line 4 – Enter the lesser of line 2 or line 3.

Line 5 – Enter any applicable recapture amount. See information

about recapture amounts.

Line 6 – Subtract line 5 from line 4. If the amount is less than

zero, enter a negative amount.

Enter the amount from line 6, Part W on line 8, Part 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

the time you electronically le your income tax return.

Recapture of Credit The credit must be recaptured if, during

either of the 2 years after the credit year, the number of qualied

positions of the qualied business entity falls below a rolling

average over the past 2 years of 10,000. If the credit is required

to be recaptured, the credit is recomputed and reduced on a

proportionate basis, based on the reduction of the rolling average

number of qualied employees over the past 2 years. The

recomputed credit is then subtracted from the amount of credit

previously allowed. If, during any of the 2 years after the credit

year, the rolling average of qualied positions falls below 9,000

for the past 2 years, all credits shall be recaptured.

PART X - PRESERVATION AND CONSERVATION EASEMENTS

TAX CREDIT

Individuals or members of a Pass-Through Entity (PTE) may be

eligible for a credit for an easement conveyed to the Maryland

Environmental Trust, the Maryland Agricultural Land Preservation

Foundation, or the Maryland Department of Natural Resources

to preserve open space, natural resources, agriculture, forest

land, watersheds, signicant ecosystems, viewsheds or historic

properties if:

1. The easement is perpetual;

2. The easement is accepted and approved by the Board of

Public Works; and

3. The fair market value of the property before and after the

conveyance of the easement is substantiated by a certied

real estate appraiser.

Individuals who are eligible to claim the Credit for Preservation

and Conservation Easements and who are not PTE members must

claim this credit on Part F of the Form 502CR. PTE members who

are eligible for this credit must claim the credit on Business Income

Tax Credit Form 500CR. PTE members who are duciaries should

see the Form 504CR for instructions on claiming this credit.

The credit is equal to the difference in the fair market values of

the property reduced by payments received for the easement.

The credit amount is limited to the lesser of the State tax liability

for the taxable year or the maximum allowable credit of $5,000.

The sum of all credits claimed by members of a PTE in a taxable

year may not exceed $5,000.

If the allowable credit amount of a PTE member exceeds the

maximum of $5,000, up to $5,000 may be carried forward each

subsequent year until the allowable credit is used up or 15 years,

whichever rst occurs.

Complete lines 1-4 of Part X. For line 1, enter the amount by which

the fair market value of the property before the conveyance of the

easement exceeds the fair market value after the conveyance as

substantiated by a certied real estate appraiser.

For additional information contact:

Maryland Environmental Trust

410-697-9515

www.dnr.state.md.us/met

Maryland Agricultural Land Preservation Foundation

410-841-5860

Department of Natural Resources

410-260-8367

Note: A copy of the approval and acceptance of the conveyance

by the Board of Public Works must be included. Provide a copy of

this approval with Maryland Schedules K-1 (510) and/or Maryland

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

Schedules K-1 (504) issued to PTE members.

PART Y - APPRENTICE EMPLOYEE TAX CREDIT

General Requirements Certain taxpayers may be eligible for

an income tax credit for the rst year of employment of eligible

apprentices. The income tax credit is based on the number of

eligible apprentices employed by the taxpayer.

“Eligible apprentice” means an individual who is enrolled

in an apprenticeship program registered with the Maryland

Apprenticeship and Training Council. Eligible apprentices must

have been employed by the taxpayer for at least 7 full months of

the taxable year.

Specic Instructions

Line 1 - Enter the number of eligible apprentices in their rst year

of employment.

Line 2 - Multiply line 1 by $1,000 and enter the result on line 2.

Enter the amount from line 2, Part Y on line 25, Part 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.

Note: A copy of the proof of enrollment for each eligible apprentice

in a registered apprenticeship program and proof of the duration

of the eligible apprentice’s employment by the taxpayer must be

included.

For more information, contact:

Maryland Department of Labor, Licensing and Regulation

1100 N. Eutaw St., Room 209

Baltimore, MD 21201

410-767-2246

PART Z - QUALIFIED FARMS TAX CREDIT

Qualied farms that make an eligible food donation may be eligible

for an income tax credit. A qualied farm that makes an eligible

food donation is eligible for a tax credit amount equal to 50% of

the value of the eligible food donation. A qualied farm that makes

a donation of certied organic produce is eligible for a tax credit

amount equal to 75% of the value of the donated certied organic

produce. Certication of the tax credit is issued by an individual or

organization authorized by the State Department of Agriculture to

receive eligible food donations from a qualied farm and to issue

the qualied farm a tax credit certicate. For any taxable year, the

aggregate amount of credits authorized for a qualied farm may

not exceed $5,000 unless the Maryland Secretary of Agriculture

increases the credit limitation for a qualied farm to an amount

not to exceed $10,000. If the allowable credit amount exceeds the

State income tax, the unused credit may be carried forward each

subsequent year until the allowable credit is used up or 5 years,

whichever rst occurs.

“Qualied farms” means a farm business that is located in Anne

Arundel County, Calvert County, Charles County, Montgomery

County, Prince George’s County, or St. Mary’s County.

“Eligible food donation” means fresh farm products for human

consumption. “Certied organic produce” means an eligible food

donation certied under Title 10, Subtitle 14 of the Agriculture

Article as an organically produced commodity.

The credit is claimed on Part Z, line 1, and is also entered on the

Business Tax Credit Summary, Part AAA, line 26.

For questions on application and certication processes or for

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

Note: A copy of all certicates issued by a Tax Credit Certicate

Administrator must be included with Form 500CR.

No credit may be earned for any tax year beginning on or after

January 1, 2020.

PART AA - QUALIFIED VETERAN EMPLOYEES TAX CREDIT

A credit may be claimed by a small business for each qualied

veteran employee hired. The credit for each qualied veteran

employee may not exceed 30% of up to the rst $6,000 of wages

paid to the qualied veteran employee during the rst year of

employment. A small business qualifying for this tax credit is

required to apply to the Maryland Department of Commerce for

a tax credit certicate. A copy of the Maryland Department of

Commerce certication must be included with the tax return of

the small business to claim this tax credit.

“Qualied veteran employee” means an individual who:

(1) Is honorably discharged or released under honorable

circumstances from active military, naval, or air service as

dened in 38 U.S.C. § 101; and

(2) Is a qualied veteran as dened under 26 U.S.C. § 51(d)

(3)(a) for purposes of the Federal Work Opportunity Tax

Credit.

“Small business” means an individual, a partnership, a limited

partnership, a limited liability partnership, a limited liability

company, or a corporation that employs 50 or fewer full-time

employees.

A small business may not claim the credit for more than ve

qualied veteran employees in a taxable year. A small business

may not claim a credit for a qualied veteran employee who is hired

to replace a laid-off employee or an employee who is on strike.

The credit is claimed on Part AA, line 1 and is also entered on

Business Tax Credit Summary, Part AAA, line 27.

Any unused credit amount for the tax year may not be carried

forward to any other taxable year.

For questions on application and certication processes or for

additional information on this credit program, contact:

Maryland Department of Commerce

Ofce of Finance Programs, Tax Incentives Group

401 E. Pratt St.

Baltimore, MD 21202

410-767-6438 or 410-737-4041

Note: A copy of the tax credit certication from the Maryland

Department of Commerce must be included with Form 500CR.

PART 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

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

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,

K-I, K-II and V. These additions are comprised of lines 1, 3, 10a

and 11 from Part AAA; and line 1 from Part V; and line 6 from Part

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,

but may be carried forward for a specied number of successive

tax years or until fully applied. It is your responsibility to maintain

a record of credits for which you qualify, credits that have been

taken in prior years, and the amount of each credit that may be

carried forward. To assist you, we have provided a table with the

number of years for which each credit may be carried forward.

PART 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

Credit from Part P-IV.

On line 2, enter the Biotechnology Investment Incentive Tax Credit

from line 6, Part L.

On line 3, enter the Clean Energy Incentive Tax Credit from line

3, Part N.

On line 4, enter the 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.

If you are ling Form 502 or Form 505, enter this amount on line

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.

If you are ling Form 500 or Form 510, continue to Part DDD.

PART DDD – CORPORATION AND PASS-THROUGH ENTITY

(PTE) REFUNDABLE TAX CREDIT SUMMARY

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-

fundable business income tax credit. If you are ling Maryland

Form 500, enter this amount on Form 500, line 15d.

Note: If you are ling Form 510, you will not report the total

amount from line 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.

Reminder: One Maryland Economic Development Tax Credit re-

quires additional entries on Maryland Schedule K-1 (510).

18-49

BUSINESS INCOME TAX

CREDITS INSTRUCTIONS

MARYLAND

FORM

500CR

2018

Part Credit

carry-

over

years

Until

Fully

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 Qualied Vehicle Tax Credit X

H-I Cybersecurity Incentive Tax Credit for Investors in

Cybersecurity

H-II Cybersecurity Incentive Tax Credit for Buyers of Cy-

bersecurity Technology and/or Cybersecurity Services

I Employer-Provided Long-Term Care Insurance Tax

Credit

J-I Maryland Employer Security Clearance Costs Tax

Credit

J-II First-Year Leasing Costs Tax Credit for Qualied Small

Businesses

K-I Research and Development Tax Credit for Businesses

not Certied as a “Small Business”*

K-II Research and Development Tax Credits for Businesses

Certied as a “Small Business”

L Biotechnology Investment Incentive Tax Credit X

M Commuter Tax Credit X

N Clean Energy Incentive Tax Credit X

O Maryland-Mined Coal Tax Credit X

P One Maryland Economic Development Tax Credit** X X

Q Oyster Shell Recycling Tax Credit X

R Energy Storage Systems Tax Credit X

S More Jobs for Marylanders Tax Credit X

T Wineries and Vineyards Tax Credit X

U Film Production Activity Tax Credit X

V Endow Maryland Tax Credit X

W Aerospace, Electronics, or Defense Contract Tax Credit X

X Preservation and Conservation Easements Tax Credit X

Y Apprentice Employee Tax Credit X

Z Qualied Farms Tax Credit X

AA Qualied Veteran Employees Tax Credit X

* The carryforward period for unused Research and Development Tax Credits from tax years prior to 2005 remains 15 years. The same credit 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

carry-

over

years

Until

Fully

Used

Green Building Tax Credit X

Cellulosic Ethanol Technology Research & Develop-

ment Tax Credit

Download
Save PDF to desktop

Email
Email completed PDF

Send for Signing
Email for others to sign

Print
Print document

NAME

Form 2018: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland)

View Audit Log
Print With Audit Log
Duplicate Document

Fill Online, Printable, Fillable, Blank Form 2018: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland) Form

Related forms

Fillable Form 2018: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland)

Fill Online, Printable, Fillable, Blank Form 2018: 500CRW WAIVER REQUEST FOR ELECTRONIC FILING (Comptroller of Maryland) Form

Related forms

First 20 documents completely FREE!