Instructions For Form 502cr - Personal Income Tax Credits

PART D - CREDIT FOR AQUACULTURE OYSTER FLOATS

the maximum allowable credit of $5,000. In the case of a joint

return each spouse must calculate their own state tax liability for

A credit is allowed for 100% of the amounts paid to purchase a

limitation purposes. You can use the rules for filing separate

new aquaculture oyster float that is designed to grow oysters at

returns in Instruction 8 in the Resident booklet to calculate each

or under an individual homeowner’s pier. The device must be

spouse’s Maryland tax.

buoyant and assist in the growth of oysters for the width of the

If the individual’s allowable credit amount exceeds the maximum

pier. The credit cannot exceed $500.

of $5,000 the excess may be carried forward for up to 15 years

or until fully used. Complete lines 1-6 of Part F. If you itemize

PART E - LONG-TERM CARE INSURANCE CREDIT

deductions, see Instruction 14 in the Resident booklet.

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

For Line 1, enter the amount by which the fair market value of the

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

property before the conveyance of the easement exceeds the fair

miums as defined by the Internal Revenue Service (Publication

market value after the conveyance as substantiated by a certified

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

real estate appraiser, plus any carryover from the prior year.

parent, child or stepchild, who is a resident of Maryland.

The carryover amount can be found on Part E line 6 of Form

A credit may not be claimed if:

502CR for tax year 2002.

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

For additional information, contact the Maryland Environmental

2000;

Trust at 410-514-7900 ( ), or the Mary-

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

land Agricultural Land Preservation Foundation at 410-841-5860.

another taxpayer; or

PART G - CLEAN ENERGY INCENTIVE CREDIT

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

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

If you purchased photovoltaic property, you may be entitled to a

per insured of:

tax credit of 15% (up to $2,000) of the cost. A credit is also

allowed for up to 15% (up to $1,000) of the cost of solar water

Amount

Age of Insured

heating property. If either of these items was purchased for busi-

$250

under 41 years

ness purposes, use Form 500CR. For additional information,

$470

41 to 50 years

contact the Maryland Energy Administration, 1623 Forest Drive,

$500

over 50 years

Annapolis, MD 21403 (410-260-7183).

SPECIFIC INSTRUCTIONS

PART H - PERSONAL INCOME TAX CREDIT SUMMARY

• Complete columns A through D of the worksheet for each

This part is to summarize parts A through G and the non-refund-

insured individual. If more space is required, attach a separate

able portion of Heritage Structure Rehabilitation tax credits. If the

statement.

total from Part H, line 9 exceeds the state tax, the excess may

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

not be refunded.

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

“0” in column E.

PART J - REFUNDABLE PERSONAL INCOME TAX CREDITS

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

Line 1 - NEIGHBORHOOD STABILIZATION CREDIT

amount of premiums paid for each insured individual up to the

maximum for that age group.

If you live in the Waverly or Lansdowne sections of Baltimore

City, or in the Hillendale, Northbrook, Pelham Woods, or

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

Taylor/Dartmouth areas of Baltimore County, you may qualify for

Also enter this amount on line 5, Part H.

this credit. To apply, an individual should contact Baltimore

County. Credit for homes purchased in Baltimore City must have

PART F - CREDIT FOR PRESERVATION AND

been applied for by December 31, 2002. After certification by Bal-

CONSERVATION EASEMENTS

timore City or Baltimore County, you may claim an income tax

If you donated an easement to the Maryland Environmental Trust

credit equal to the property tax credit granted by Baltimore City or

or the Maryland Agricultural Land Preservation Foundation to

Baltimore County. Enter the amount on line 1 of Part J and attach

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

a copy of the certification.

watersheds, significant ecosystems, viewsheds or historic prop-

Line 2 - HERITAGE STRUCTURE REHABILITATION TAX

erties, you may be eligible for a credit if:

CREDIT

1. the easement is perpetual;

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

See instructions for Form 502H.

Public Works; and

Line 3 - CLAIM OF RIGHT

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

conveyance of the easement is substantiated by a

If you repaid an amount reported as income on a prior year

certified real estate appraiser.

tax return this year that was greater than $3,000, you may be

eligible for an IRC Section 1341 Claim of Right credit. For

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

additional information, see Administrative Release 40.

property by payments received for the easement. If the property

is owned jointly by more than one individual such as a husband

Line 4 - Add lines 1 through 3 and enter the total on the appro-

and wife, each individual owner is entitled to the credit based

priate line of the income tax form being filed.

on their percentage of ownership. The credit amount is limited

to the lesser of the individual’s state tax liability for that year or

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Instructions For Form 502cr - Personal Income Tax Credits - 2003 Page 3

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