Instructions For Maryland Form 502cr - Income Tax Credits For Individuals

2015

MARYLAND

INCOME TAX CREDITS FOR

FORM

INDIVIDUALS INSTRUCTIONS

Page 3

502CR

PART D - CREDIT FOR AQUACULTURE OYSTER FLOATS

fully used. Complete lines 1-7 of Part F. If you itemize deductions, see

Instruction 14 in the Resident booklet.

A credit is allowed for 100% of the amounts paid to purchase new

For line 1, enter the amount by which the fair market value of the

aquaculture oyster floats that are designed to grow oysters at or under

property before the conveyance of the easement exceeds the fair market

an individual homeowner’s pier. The devices must be buoyant and assist

value after the conveyance as substantiated by a certified real estate

in the growth of oysters for the width of the pier. In the case of a joint

appraiser, plus any carryover from the prior year.

return, each spouse is entitled to claim the credit, provided each spouse

purchases or contributes to the purchase of a float. The credit amount

The carryover amount can be found on Part F line 7 of Form 502CR for

is limited to the lesser of the individual’s state tax liability for that year

tax year 2014.

or the maximum allowable credit of $500. In the case of a joint return,

For additional information, contact the Maryland Environmental Trust

each spouse must calculate his/her own state tax liability for limitation

410-514-7900,

the

Maryland

purposes.

Agricultural Land Preservation Foundation at 410-841-5860.

PART E - LONG-TERM CARE INSURANCE CREDIT

PART G – HEALTH ENTERPRISE ZONE PRACTITIONER INCOME

A one-time credit may be claimed against the state income tax for the

TAX CREDIT

payment of qualified long-term care (LTC) insurance premiums as defined

by the IRS (Publication 502) for a policy to insure yourself, or your spouse,

If you are a qualified “Health Enterprise Zone (HEZ) Practitioner,” you may

parent, stepparent, child or stepchild, who is a resident of Maryland.

be able to claim a credit against your State tax liability for income that

you earned for practicing health care in a HEZ. To apply for certification,

A credit may not be claimed if:

you must be a health care practitioner who is licensed or certified under

a. The insured was covered by LTC insurance prior to July 1, 2000;

the Maryland Health Occupations Article, and who provides:

b. The credit for the insured is being claimed in this year by another

1. Primary care, including obstetrics, gynecological services, pediatric

taxpayer;

services, or geriatric services;

c. The credit is being or has been claimed by anyone in any other tax

2. Behavioral health services, including mental health or alcohol and

year; or

substance abuse services; or

d. The insured is a nonresident of Maryland.

3. Dental services.

To be eligible to claim this tax credit, you must:

The credit is equal to the LTC premiums paid with a maximum per insured

of:

1. Be a HEZ practitioner who practices health care in a HEZ;

2. Demonstrate competency in cultural, linguistic, and health literacy

Amount

Age of Insured as of 12/31/15

in a manner determined by the Maryland Department of Health and

$380

40 or less

Mental Hygiene (DHMH);

$500

over 40 years

3. Accept and provide care for patients enrolled in the Maryland

Medical Assistance Program and for uninsured patients; and

SPECIFIC INSTRUCTIONS

4. Meet any other criteria required by DHMH to be certified for this

• Answer Questions 1 through 4. If you answered “yes” for any of the

credit.

questions, no credit is allowed for that individual.

Eligibility for this tax credit is limited to funds budgeted. Applicants

• Complete Columns A through D of the worksheet for each qualifying

seeking certification will be approved on a first-come, first-served

insured individual who qualifies for the credit. If more space is required,

basis. To become certified, the HEZ practitioner may apply to the non-

attach a separate statement.

profit community organization or local government approved by DHMH.

• Enter in Column E the amount of premiums paid for each qualifying

Go to DHMH website at: dhmh.maryland.gov for more information.

insured individual up to the maximum for that age group.

INSTRUCTIONS

• Add the amounts in Column E and enter the total on line 5. Also enter

this amount on Part J, line 5.

Line 1

Enter on line 1 the amount of the tax credit certified by DHMH.

This amount is also entered on Part J, line 7.

PART F - CREDIT FOR PRESERVATION AND

This credit is limited to the State tax. There is no carryover to another

CONSERVATION EASEMENTS

year. No credits may be earned for any tax year beginning on or after

If you donated an easement to the Maryland Environmental Trust or the

January 1, 2017. The credit may only be claimed on an amended

Maryland Agricultural Land Preservation Foundation to preserve open

Maryland income tax return.

space, natural resources, agriculture, forest land, watersheds, significant

If you have hired qualified employees to work in a HEZ, you may be

ecosystems, viewsheds or historic properties, you may be eligible for a

entitled to a HEZ Hiring Tax Credit. This credit is computed on Maryland

credit if:

Business Tax Credit Form 500CR and requires DHMH certification. The

1. the easement is perpetual;

credit may only be claimed on an electronically filed amended Maryland

2. the easement is accepted and approved by the Board of Public Works

income tax return. You may download instructions from our Web site at

and

3. the fair market value of the property before and after the conveyance

PART H - COMMUNITY INVESTMENT INCOME TAX CREDIT

of the easement is substantiated by a certified real estate appraiser.

Businesses or individuals who contribute to approved Community

The credit is equal to the difference in the fair market values of the

Investment Programs may be eligible for a credit against the Maryland

property reduced by payments received for the easement.

State income tax. Contributions must be made to a nonprofit organization

If the property is owned jointly by more than one individual, such as

approved by the Department of Housing and Community Development

a married couple, each individual owner is entitled to the credit

(DHCD). The taxpayer must apply to and receive approval by the DHCD

based on their percentage of ownership. Individual members of a

for each contribution for which a credit is claimed.

pass-through entity are not eligible for this credit. The credit amount is

Individuals who are eligible to claim the Community Investment Tax

limited to the lesser of the individual’s state tax liability for that year or

Credit (CITC), and who are not PTE members may elect to claim this

the maximum allowable credit of $5,000, per owner, who qualifies to claim

credit on Part H of Form 502CR, instead of claiming the credit on Form

the credit. Complete a separate column in the worksheet for each spouse.

500CR. However, an individual may not claim this credit on both Form

In the case of a joint return, each spouse must calculate their own

500CR and Form 502CR. PTE members who are eligible for this credit

state tax liability for limitation purposes. Use the rules for filing separate

must claim the credit on Business Income Tax Credit Form 500CR.

returns in Instruction 8 in the Resident booklet to calculate each spouse’s

Individuals who anticipate having a carryover of the CITC are advised

Maryland tax. In the case of a fiduciary return, the fiduciary will complete

to use Form 500CR instead of Form 502CR. Individuals who have an

the column for Taxpayer B only.

existing carryover on Part X of their 2014 Form 500CR may elect to use

If the individual’s allowable credit amount exceeds the maximum of

Form 502CR if their Excess Carryover Credit is attributable only to the

$5,000, the excess may be carried forward for up to 15 years or until

Instructions For Maryland Form 502cr - Income Tax Credits For Individuals - 2015 Page 3

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