One Maryland Economic Development Tax Credit
The One Maryland Economic Development Tax Credit is a state tax incentive designed to encourage economic development and business investment in Maryland. This credit is available to qualified business entities that engage in eligible economic development projects, such as job creation, infrastructure improvements, or business expansion.
Eligibility and Qualifications
- Applicants must be a qualified business entity operating in Maryland.
- The project must meet specific criteria defined by the Maryland Department of Revenue, including job creation, capital investment, or community revitalization.
- Entities must complete Part P-I or Part P-II of Form 500CR to compute and claim the credit.
- Only Column 2 of Part P-I is required for members filing based on Maryland Schedule K-1 (510/511).
How to Claim the Credit
To claim the One Maryland Economic Development Tax Credit, taxpayers must file Form 500CR (Business Income Tax Credits) along with their Maryland state tax return. The credit is calculated in two parts:
- Nonrefundable Portion: Computed from project costs (line 33) and start-up costs (line 34), totaling on line 35.
- Refundable Portion: Available if the credit exceeds the taxpayer’s Maryland income tax liability.
For taxpayers who are not PTE members, the project taxable income must be separated from non-project taxable income on Form 500CR, Part A.
Reporting Requirements
- Complete Part P-IV of Form 500CR to summarize credit amounts.
- Enter the total nonrefundable credit on line 14 of Form 500CR.
- Enter the total refundable credit on line 15 of Form 500CR.
Additional documentation may be required, including certification for projects certified before July 1, 2018.
Important Notes
- The credit is claimed on Form 500CR, which attaches to Forms 500, 502, 505, 510, or 511.
- For detailed instructions and qualifications, refer to Form 500CR instructions or visit the Maryland Comptroller’s website.
Source:
Form 500CR - Business Income Tax Credits
Resident Booklet - Maryland Income Tax Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.