Instructions For Maryland Form 500cr - Business Tax Credits

business, were Maryland residents and recipients of state

the first $6,000 of qualified first-year wages for the first year of

benefits from the AFDC Program. Qualified employment

employment and 20% of the first $6,000 of qualified wages for

opportunity employees are those who are certified as such by

the second year of employment. A special one-year credit may

be taken for 40% of the first $10,000 of wages paid to an

the Maryland Department of Labor, Licensing and Regulation

- Division of Employment and Training at 1100 N. Eutaw

employment opportunity employee if:

Street, Baltimore, MD 21201, 410-767-2080.

1. the employee has been a recipient of temporary

assistance under the AFDC program for at least 18

Qualifying child care expenses are those expenses incurred

of the last 24 months (whether consecutive or not); and

by a business to enable a qualified employment opportunity

employee of the business to be gainfully employed.

2. has been employed for a full year by the employer

claiming the credit.

Qualifying transportation expenses are those expenses

incurred by a business to enable a qualified employment

The same employee may not be used to qualify for both the

opportunity employee to travel to and from work.

two-year and special one-year credits.

The employer is not entitled to claim the credit until employ-

In addition, an employee may not have been hired to

ment has continued for at least one full year unless the em-

replace a laid-off employee or to replace an employee who is

ployee (a) voluntarily leaves the employer,

on strike or for whom the business simultaneously receives

(b) becomes disabled, or (c) is terminated for cause.

federal or state employment training benefits.

Part B-IV Credit for Qualified Child Care and Transpor-

A business must also notify the Maryland Department of

tation Expenses (for employees hired on or after June 1,

Business and Economic Development that the qualified

1998). A credit is allowed for the child care expenses incurred by

employment opportunity employee has been hired.

the employer for the children of qualified employees. If the

For further information on qualified individuals and the

employer provides or pays for approved day care services for a

requirements businesses must meet to qualify, contact the

child or children of the employee, or pays for transportation

Maryland Department of Labor, Licensing and Regulation -

expenses that are incurred to enable a qualified employee with

Division of Employment and Training at 1100 N. Eutaw Street,

a disability to travel to and from work, the employer shall be

Baltimore, MD 21201, 410-767-2047.

eligible for an additional credit of up to $600 for the first year of

employment and up to $500 for the second year. To verify if a

Specific Requirements.

child care center qualifies as an approved provider, contact the

Part B-I Credit for Qualified Employment Opportunity

Maryland Department of Human Resources, Saratoga State

Employees (hired prior to June 1, 1998). A credit is allowed

Center, 311 W. Saratoga Street, Baltimore, Maryland 21201,

for each new AFDC recipient employee for a three-year period

410-767-7822.

beginning with the year the employee was qualified. The credit

Part B-Summary. Add lines 17, 24, 31 and 36.

for each AFDC recipient hired shall be equal to but may not

Whenever an Employment Opportunity Tax Credit is

exceed 30% of the first $6,000 of qualified first-year wages for

claimed against the income tax, an addition modification must

the first year of employment, 20% of the first $6,000 of qualified

be made in the taxable year for which the wages or child care

wages for the second year of employment and 10% of the first

expenses claimed as a credit were paid. The modification

$6,000 of qualified wages for the third year of employment.

increases the taxable income base to the extent of the total

The employer is not entitled to claim the credit until employ-

credit claimed against the tax liability for the taxable year.

ment has continued for at least one full year unless the em-

ployee (a) voluntarily leaves the employer, (b) becomes

PART C - EMPLOYMENT OF INDIVIDUALS WITH

disabled or (c) is terminated for cause.

DISABILITIES TAX CREDIT

Part B-II Credit for Qualified Child Care Expenses (for

General Requirements. Businesses who employ persons with

employees hired prior to June 1, 1998). A credit is allowed for

disabilities as certified by the State Department of Education

the child care expenses incurred by the employer for the children of

may be eligible for tax credits based upon wages paid to the

qualified employees described in Part B-I. If the employer provides

qualified employees, child care expenses and transportation

or pays for approved day care services for a child or children of

expenses paid on behalf of the qualified employees.

the employee, the employer shall be eligible for an additional

Qualifying employees with a disability are those who are

credit of $600 for the first year of employment, $500 for the

certified as such by the Maryland State Department of Educa-

second year and $400 for the third year. To verify if a child care

tion - Division of Rehabilitation Services at 2301 Argonne

center qualifies as an approved provider, contact the Maryland

Drive, Baltimore, MD 21218, 1-888-554-0334.

Department of Human Resources, Saratoga State Center, 311

In addition to being certified, a “Qualified Employee” with a

W. Saratoga Street, Baltimore, Maryland 21201, 410-767-7822.

disability means an individual who:

Part B-III Credit for Qualified Employment Opportunity

Employees (hired on or after June 1, 1998). A credit is

1. Meets the definition of an individual with a disability as

allowed for each new AFDC recipient employee for a two-year

defined by the Americans with Disability Act;

period beginning with the year the employee was qualified. The

2. Has a disability that presently constitutes an impediment to

credit for each AFDC recipient hired shall be equal to 30% of

Instructions For Maryland Form 500cr - Business Tax Credits - 1998 Page 2

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