Instructions For Maryland Form 500cr - Business Tax Credits

obtaining or maintaining employment or to transitioning

based on the number of qualified positions created or wages

from school to work; and

paid for these qualified positions.

3. Is ready for employment.

For information on the standards that businesses must

meet to qualify, contact the Maryland Department of Business

Qualifying child care expenses are those expenses

and Economic Development, 217 E. Redwood Street, Balti-

incurred by a business to enable a qualified employee with a

more, MD 21202, 410-767-6438.

disability to be gainfully employed.

The business facility must be certified as having created at

Transportation expenses are those expenses incurred by a

least 60 qualified positions or at least 30 high-paying qualified

business entity to enable a qualified employee with a disability

positions or 25 qualified positions if the business facility

to travel to and from work.

established or expanded is in a State Priority Funding Area.

In addition, an employee must not have been hired to

A qualified employee is an employee filling a qualified

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

position. A qualified position is a full-time position which pays at

on strike or for whom the business simultaneously receives

least 150% of the federal minimum wage, is located in Maryland,

federal or state employment training benefits.

is newly created as a result of the establishment or expansion of

The business must also notify the Maryland State Depart-

a business facility in a single location in the state and is filled.

ment of Education - Division of Rehabilitation Services that the

Qualified business entities are those that are certified as such by

qualified employee with a disability has been hired.

the Maryland Department of Labor, Licensing and Regulation -

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

Specific Requirements.

Baltimore, Maryland 21201, 410-767-2080.

Part C-I Credit for disabled employees. A credit is

This credit has a claw-back provision that provides that if the

allowed for each new employee with a disability for a two-year

entity does not maintain the number of qualified positions upon

period beginning with the year the employee was qualified.

which the credit was based, the credit shall be recaptured.

The credit for each disabled employee hired shall be equal to

* No credits may be earned for any taxable year begin-

but may not exceed 20% of the first $6,000 of qualified first and

ning on or after January 1, 2002.

second year wages.

Specific Requirements.

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

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

Part D-I Credit for qualified employees employed by a

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

qualified entity. A credit is allowed for each newly created

disabled or death occurs or (c) is terminated for cause.

qualified filled position. The credits are limited to the lesser of

$1,000 multiplied by the number of filled qualified positions of a

Part C-II Credit for Qualified Child Care and Transpor-

qualified entity during the credit year or 2.5% of the wages paid for

tation Expenses. A credit is allowed for the child care

a filled qualified position by a qualified entity for the credit year.

expenses incurred by the employer for the children of qualified

employees described in Part C-I. If the employer provides or

Part D-II Credit for qualified employees working in a

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

facility located in a Revitalization Area. A credit is allowed for

the employees, or pays for transportation expenses that are

each newly created qualified filled position located in a Revitaliza-

incurred to enable a qualified employee with a disability to

tion Area. The credits are limited to the lesser of $1,500

travel to and from work, the employer shall be eligible for an

multiplied by the number of filled qualified positions or 5% of

additional credit of up to $600 for the first year of employment

the wages paid for a qualified position in a Revitalization Area.

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

Part D-Summary. Add lines 48 and 52 and enter total on

center qualifies as an approved provider, contact the Maryland

line 53. The unused amount of the credit may be carried over to the

Department of Human Resources, Saratoga State Center, 311

next year. The amount of credits allowed for any credit year cannot

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

exceed $1,000,000. The total credit will be taken over a two-year

Part C-Summary. Add lines 40 and 43.

period. One-half of the credit will be allowed each year.

Whenever this credit is claimed against the income tax, an

PART E- NEIGHBORHOOD AND COMMUNITY

addition modification must be made in the taxable year for which the

ASSISTANCE PROGRAM TAX CREDIT

wages, child care or transportation expenses claimed as a credit were

paid. The modification increases the taxable income base to the extent

General Requirements. Certain businesses that contribute to

of the total credit claimed against the tax liability for the taxable year.

approved Neighborhood and Community Assistance Programs

may be eligible for a credit against the state income tax.

Credit shall be allowed only for employees hired on or after

Contributions must be made to a nonprofit organization

October 1, 1997 but before January 1, 2003.

approved by the Department of Housing and Community

Development.The business must apply to and receive approval by

PART D - JOB CREATION TAX CREDIT

the Department of Housing and Community Development for each

General Requirements. Certain businesses that create new

contribution for which the corporation claims a credit. The credit is

qualified positions in Maryland may be eligible for tax credits

limited to 50% of the approved contributions not to exceed $125,000.

Instructions For Maryland Form 500cr - Business Tax Credits - 1998 Page 3

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