Instructions For Form 502cr - Personal Income Tax Credits

Line 6. Enter the sum of line 5, columns A and B. Also enter this

1. the easement is perpetual;

amount on line 3, Part F.

2. the easement is accepted and approved by the Board of

Public Works; and

PART D - LONG-TERM CARE INSURANCE CREDIT

3. the fair market value of the property before and after the

A one-time credit may be claimed against the state income tax

conveyance of the easement is substantiated by a

for the payment of qualified long-term care (LTC) insurance pre-

certified real estate appraiser.

miums as defined by the Internal Revenue Service (Publication

You must reduce the difference in the fair market value of the

502) for a policy to insure yourself, or your spouse, parent, step-

property by payments received for the easement. The amount of

parent, child or stepchild.

the credit is limited to the lesser of State income tax for that tax-

A credit may not be claimed if:

able year or $5,000. If the property is owned jointly between you

a. the insured was covered by LTC insurance prior to July 1,

and your spouse, then both you and your spouse are entitled to

2000;

the credit. If the otherwise allowable credit exceeds these limits,

b. the credit for the insured is being claimed in this year by

you may carry forward the excess for up to 15 years or until fully

another taxpayer; or

used. Complete lines 1 through 6 of Part E.

c. the credit is being claimed in any other tax year.

For additional information, contact the Maryland Environmental

Trust at 410-514-7900 (e-mail: jbernstein@dnr.state.md.us), or

The credit is equal to the LTC premiums paid with a maximum

the Maryland Agricultural Land Preservation Foundation at 410-

per insured of:

841-5860.

Amount

Age of Insured

$230

under 41 years

PART F - PERSONAL INCOME TAX CREDIT SUMMARY

$430

41 to 50 years

This part is to summarize parts A, B, C, D and E and the non-

$500

Over 50 years

refundable portion of Heritage Area tax credits. If the total from

part F, line 7 exceeds the state tax, the excess may not be

SPECIFIC INSTRUCTIONS

refunded.

• Complete columns A through D of the worksheet for each

PART G - NEIGHBORHOOD STABILIZATION CREDIT

insured individual.

• Answer Questions 1 through 3. If you answered “yes” for any

If you live in Hillendale, Lansdowne or Waverly, you may qualify

of the questions, no credit is allowed for that individual. Enter

for this credit. To apply for this credit, an individual should contact

Baltimore City or Baltimore County. Individuals certified by Balti-

“0” in column E.

more City or Baltimore County as qualified for the Neighborhood

• Unless you have already entered “0”, enter in Column E the

Stabilization Credit may claim a credit equal to the property tax

amount of premiums paid for each insured individual up to the

credit granted by Baltimore City or Baltimore County. Enter the

maximum for that age group.

amount on line 1 of part G and attach a copy of the certification.

• Add the amounts in Column E and enter the total on line 5.

PART H - HERITAGE AREA CREDIT

Also enter this amount on line 4, Part F.

See instructions for Form 502H.

PART E - CREDIT FOR PRESERVATION AND

CONSERVATION EASEMENTS

PART J - REFUNDABLE PERSONAL INCOME TAX CREDIT

If you donated an easement to the Maryland Environmental Trust

SUMMARY

or the Maryland Agricultural Land Preservation Foundation to

This part is to summarize Parts G and H. Add lines 1 and 2 and

preserve open space, natural resources, agriculture, forest land,

enter the total on the appropriate line of the income tax form

watersheds, significant ecosystems, viewsheds or historic prop-

being used.

erties, you may be eligible for a credit if:

Instructions For Form 502cr - Personal Income Tax Credits - 2001 Page 3

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