Instructions For Maryland Form 500cr - Business Tax Credits

For further information contact the Department of Housing

Part H-II Credit for qualified clean-fuel vehicles.

and Community Development, 100 Community Place,

A credit is allowed for the cost of any qualified clean-fuel

Crownsville, MD 21032-2023, 410-514-7241.

vehicle property not identified in H-I, and as defined and limited

by Section 179A of the Internal Revenue Code and placed in

PART F - BUSINESSES THAT CREATE NEW JOBS TAX

service during the taxable year. The credit for each of these

CREDIT

vehicles shall be equal to but not exceed 40% of the deduction

General Requirements. Certain businesses located in

allowed to the individual or corporation for the cost of such

Maryland that create new positions or establish or expand

qualified clean-fuel vehicle property as recorded on the federal

business facilities in the state will be entitled to a credit against

return.

state tax if a property tax credit is granted by the Mayor and

Part H-III Credit for qualified electric vehicles. A credit

City Council of Baltimore City or the governing body of a county

is allowed for the cost of any qualified electric vehicle not

or municipal corporation.

identified in H-I or H-II, and as defined and limited by Section

This credit is based on a percentage of the property tax

30 of the Internal Revenue Code and placed in service during

credit as certified by the State Department of Assessments

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

and Taxation. Enter on line 62 the certified amount.

but not exceed 40% of the credit allowed to the individual or

corporation for the cost of such qualified electric vehicle

A business entity is required to recapture the state income

property as recorded on the federal return.

tax credit earned, if during the three (3) taxable years succeed-

ing any year in which a credit was earned, the business entity

Part H-Summary. Add lines 65, 67 and 69.

fails to satisfy the applicable thresholds to qualify for the tax

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

credit.

be carried over to any other taxable year.

This credit is applicable to all taxable years beginning after

PART I-TELECOMMUNICATIONS PROPERTY

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

TAX CREDIT.

For further information contact the State Department of

A credit is allowed for a public utility that is a telecommu-

Assessments & Taxation, 301 W. Preston Street, Baltimore,

nications company in an amount limited to 60% of the total

MD 21201-2395, 410-767-1191.

state, county and municipal corporation property tax paid. The

credit is calculated on the property tax of operating real

PART G - HERITAGE AREA TAX CREDIT

property in Maryland that is used in the telecommunications

business other than operating land. The unused amount of the

See instructions for Form 502H.

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

other taxable year.

PART H - CLEAN-FUEL VEHICLE TAX CREDIT

General Requirements. Certain taxpayers who purchase

PART J - BUSINESS TAX CREDIT SUMMARY

alternative-fuel and electric vehicles and for certain property

This part is to summarize all available tax credits reported

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

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

certain alternative fuels may be eligible for the tax credits

exceed the tax developed for that year, the excess may not be

based on the cost of placing these vehicles in service during

refunded.

the taxable year. A credit will not be allowed for (1) a vehicle

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

that is not titled and registered in Maryland, or (2) property

PART B and PART C.

installed on a vehicle that is not titled and registered in Mary-

land, or (3) a vehicle with a gross vehicle weight of more than

PART K- EXCESS CREDIT CARRYOVER CALCULATION

26,000 pounds.

The excess of the allowable tax credit carryover may be

This credit is available for vehicles purchased through

June 30, 2000.

applied as a credit against the tax for the next succeeding

taxable year or until either:

Specific Requirements.

1. All of the excess is fully applied; or

Part H-I Credit for qualified clean-fuel trucks with a

2. Expiration of the fifth taxable year after the tax year in which

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

the wages or other expenses for which the credit is

pounds. A credit is allowed for the cost of any truck or van with

claimed were incurred (the tenth taxable year after the tax

a gross vehicle weight of more than 5,000 but less than 10,000

year in which the Heritage Area expenses were paid).

pounds that is qualified clean-fuel vehicle property under

Section 179A of the Internal Revenue Code and is placed in

NOTE: An employer may not use the same employee to

service during the taxable year. The credit for each vehicle

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

shall be equal to but not exceed 80% of the deduction allowed

applied more than once against different taxes by the same

to the individual or corporation for the cost of such qualified

taxpayer.

clean-fuel vehicle property as recorded on the federal return.

Instructions For Maryland Form 500cr - Business Tax Credits - 1998 Page 4

Related Articles

Related forms

Related Categories