INCOME TAX CREDITS FOR
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
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
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
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
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
1. Be a HEZ practitioner who practices health care in a HEZ;
2. Demonstrate competency in cultural, linguistic, and health literacy
Age of Insured as of 12/31/15
in a manner determined by the Maryland Department of Health and
40 or less
Mental Hygiene (DHMH);
over 40 years
3. Accept and provide care for patients enrolled in the Maryland
Medical Assistance Program and for uninsured patients; and
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
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.
• Add the amounts in Column E and enter the total on line 5. Also enter
this amount on Part J, line 5.
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
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
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
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