Instructions For Maryland Form 500cr - Business Tax Credits

satisfy the applicable thresholds to qualify for the tax credit.

Specific Requirements

The original credit is applicable to all taxable years beginning

Part K-I Credit for qualified clean-fuel trucks with a vehicle

after December 31, 1996, but before January 1, 2008. The

weight of more than 5,000 but less than 10,000 pounds. A

enhanced credit is applicable for all taxable years beginning

credit is allowed for the cost of any truck or van with a gross

after December 31, 1998.

vehicle weight of more than 5,000 but less than 10,000 pounds

that is qualified clean-fuel vehicle property under Section 179A

For further information contact the State Department of Assess-

of the Internal Revenue Code and is placed in service during the

ments & Taxation, 301 W. Preston Street, Baltimore, MD 21201-

taxable year. The credit for each vehicle shall be equal to but

2395 (410-767-1191).

not exceed 80% of the deduction allowed to the individual or

corporation for the cost of such qualified clean-fuel vehicle

PART G - HERITAGE AREA TAX CREDIT

property as recorded on the federal return.

See instructions for Form 502H.

Part K-II Credit for qualified clean-fuel vehicle. A credit is

PART H - WATER QUALITY IMPROVEMENT CREDIT

allowed for the cost of any qualified clean-fuel vehicle property

not identified in K-I, and as defined and limited by Section 179A

A credit is allowed for 50% of the certified additional commercial

of the Internal Revenue Code and placed in service during the

fertilizer costs necessary to convert agricultural production to a

taxable year. The credit for each of these vehicles shall be equal

nutrient management plan. The credit may not exceed $4,500

to but not exceed 40% of the deduction allowed to the individual

per taxable year and may be claimed for up to a maximum of 3

or corporation for the cost of such qualified clean-fuel vehicle

consecutive years. Certification of the credit must be obtained

property as recorded on the federal return.

from the Department of Agriculture.

Part K-III Credit for qualified electric vehicle. A credit is

This credit is applicable for tax years beginning after December

allowed for the cost of any qualified electric vehicle not identified

31, 1998 but before January 1, 2009.

in K-I or K-II, and as defined and limited by Section 30 of the

For further information contact the Department of Agriculture,

Internal Revenue Code and placed in service during the taxable

Nutrient Management Program, 50 Harry S. Truman Parkway,

year. The credit for each vehicle shall be equal to but not

Annapolis, MD 21401 ( 410-841-5959.)

exceed 40% of the credit allowed to the individual or corporation

for the cost of such qualified electric vehicle property as re-

PART I - EMPLOYER PROVIDED LONG-TERM CARE

corded on the federal return.

INSURANCE

Part K-Summary. Add lines 72, 74 and 76. The unused amount

A credit is allowed for certain costs incurred by employers that

of the credit for any taxable year may not be carried over to any

provide to their employees long-term care insurance as part of

other taxable year.

their benefits package. The employer may claim a tax credit in

an amount equal to 5% of the costs incurred to provide long-term

PART L - TELECOMMUNICATIONS PROPERTY TAX CREDIT

care insurance. The credit is limited to $100 for each Maryland

A credit is allowed for a public utility that is a telecommunications

employee covered by long-term care insurance provided under

company in an amount limited to 60% of the total state, county

the employee benefit package with a maximum of $5,000.

and municipal corporation property tax paid. The credit is

PART J - WORK-BASED LEARNING PROGRAM CREDIT

calculated on the property tax of operating real property in

Maryland that is used in the telecommunications business other

A credit is allowed for wages paid to each student employee

than operating land. This credit is applied after all other credits.

under an approved paid work-based learning program. This

The unused amount of the credit for any taxable year may not be

credit is for up to 15% of the wages paid to each individual

carried over to any other taxable year.

student not to exceed a cumulative amount of $1,500 per

student for the duration of the program.

PART M - BUSINESS TAX CREDIT SUMMARY

For further information on qualified students and the require-

This part is to summarize all available tax credits reported on this

ments employers must meet to qualify, contact the Maryland

form. If the total credits available in a particular tax year exceed

State Department of Education, Division of Career Technology

the tax developed for that year, the excess may not be refunded.

and Adult Learning, 200 W. Baltimore St., Baltimore, MD 21201

An addition to income is required for credits from PART A, PART

(410-767-0182).

B and PART C.

PART K - CLEAN-FUEL VEHICLE TAX CREDIT

PART N - EXCESS CREDIT CARRYOVER CALCULATION

General Requirements. Certain taxpayers who purchase

The excess of the allowable tax credit carryover may be applied

alternative-fuel and electric vehicles and for certain property

as a credit against the tax for the next succeeding taxable year

installed on a vehicle to permit the vehicle to be propelled by

or until either:

certain alternative fuels may be eligible for the tax credits based

1. all of the excess is fully applied; or

on the cost of placing these vehicles in service during the

taxable year. A credit will not be allowed for:

2. expiration of the fifth taxable year after the tax year in

which the wages or other expenses for which the credit is

1. a vehicle that is not titled and registered in Maryland, or

claimed were incurred (the tenth taxable year after the tax

2. property installed on a vehicle that is not titled and

year in which the Heritage Area expenses were paid).

registered in Maryland, or

NOTE: An employer may not use the same employee to qualify

3. vehicle with a gross vehicle weight of more than 26,000

for more than one credit. The same credit cannot be applied

pounds.

more than once against different taxes by the same taxpayer.

This credit is available for vehicles purchased through

June 30, 2000.

Instructions For Maryland Form 500cr - Business Tax Credits - 1999 Page 4

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