Instructions For Maryland Form 500cr - Business Tax Credits - 1998

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INSTRUCTIONS FOR
MARYLAND FORM 500CR
BUSINESS TAX CREDITS
1998
GENERAL INSTRUCTIONS
4. Were hired by the business after the later of the date on which
Purpose of form. Form 500CR is used to claim business tax
the enterprise zone was designated or the date on which the
credits against corporation or personal income tax.
business entity located in the enterprise zone.
The tax credits available to be reported on this form are the
In addition, an employee may not have been hired to
Enterprise Zone Tax Credit, the Employment Opportu-
replace an individual employed by the business in that or the
nity Tax Credit*, the Employment of Individuals with
three previous taxable years except an economically disadvan-
taged employee hired to replace a previously qualified eco-
Disabilities Tax Credit *, the Job Creation Tax Credit, the
Neighborhood and Community Assistance Program Tax
nomically disadvantaged employee, for whom the business
Credit, the Businesses that Create New Jobs Tax Credit,
received the corresponding first- or second-year credit in the
the Heritage Area Tax Credit, the Clean-Fuel Vehicle Tax
immediately preceding taxable year.
Credit and the Telecommunications Property Tax Credit.
Economically disadvantaged employees are those who
*Tax-exempt organizations. For application of these credits
are certified as such by the Maryland Department of Labor,
Licensing and Regulation-Division of Employment and Training
against employer withholding tax, see Administrative Release
at 1100 N. Eutaw Street, Baltimore, MD 21201, 410-767-2047.
No. 34.
That office will provide information relating to certification
Name and Other Information. Type or print the name as shown
requirements for such employees.
on Form 500, Form 502 or Form 505 in the designated area.
Enter the Taxpayer Identification Number (Social Security number
Specific Requirements.
or federal identification number). If a Federal Employer Identifica-
tion Number (FEIN) is to be used and has not been secured, enter
Part A-I Credit for economically disadvantaged
“APPLIED FOR” followed by the date of application. If you have
employees. A credit is allowed for each new economically
not applied for a FEIN, please do so immediately.
disadvantaged employee for a three-year period beginning
with the year the employee was qualified. The credits are
Taxable Year or Period. Enter the beginning and ending dates
limited to the following amounts of wages paid to the same
in the space provided at the top of Form 500CR. The form used
economically disadvantaged employee: $1,500 in the first year,
for filing must reflect the same tax year as the annual tax return.
$1,000 in the second year and $500 in the third year. If the
When and Where to File. Form 500CR must be attached to
employee replaced a previously qualified economically disad-
the annual return (Form 500, 502 or 505) and filed with the
vantaged employee, the credit for the new employee will be the
Comptroller of the Treasury, Revenue Administration Division,
same as would have been allowed for the replaced employee.
Annapolis, Maryland 21411-0001.
Part A-II Credit for other qualified employees. A credit
is allowed for each new qualified employee not provided in Part
PART A - ENTERPRISE ZONE TAX CREDIT
A-I. The credit is limited to $500 of wages paid and is appli-
General Requirements. Businesses located in an enterprise
cable for only the first year the employee was qualified.
zone may be eligible for tax credits based upon wages paid to
Part A-Summary. Add lines 7 and 9 and enter total.
qualifying employees. For information on the location of
enterprise zones and the standards which businesses must
Whenever an Enterprise Zone Tax Credit is claimed
meet to qualify, contact the Maryland Department of Business
against the income tax, an addition modification must be made
and Economic Development-Office of Research at 217 E.
in the taxable year for which the wages claimed as a credit
Redwood Street, Baltimore, MD 21202, 410-767-6435.
were paid. The modification increases the taxable income
base to the extent of the total credit claimed against the tax
Businesses owning, operating, developing, constructing or
liability for the taxable year.
rehabilitating property intended for use primarily as single-or
multi-family residential property are not eligible for the enter-
PART B - EMPLOYMENT OPPORTUNITY TAX CREDIT
prise zone tax credit.
General Requirements. Businesses that employ persons
Qualifying employees are those employees who:
receiving “Aid to Families With Dependent Children” (AFDC) may
1. Are new employees or employees rehired after being laid
be eligible for tax credits based upon wages paid to qualified
off for more than one year;
employees and child care and transportation expenses paid on
behalf of qualified employees. The available credits depend on
2. Were employed at least 25 hours per week by the busi-
whether the qualified employees were hired prior to or after
ness for at least six months before or during the business
June 1, 1998. See the specific requirements for more details.
entity’s taxable year for which a credit is claimed;
Qualifying employees are those who are residents of
3. Spent at least one-half of their working hours in the enter-
Maryland and who, immediately before going to work for the
prise zone on activities of the business resulting directly
from its location in the enterprise zone; and

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