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

2015

MARYLAND

INCOME TAX CREDITS FOR

FORM

INDIVIDUALS INSTRUCTIONS

Page 4

502CR

The credit is limited to 50% of the approved contributions (including real

PART J - INCOME TAX CREDIT SUMMARY

property) not to exceed $250,000.

This part is to summarize Parts A through I. If the total from Part J, line

NOTE: A copy of the required approval from the DHCD must be included

10 exceeds the state tax, the excess will not be refunded.

with Form 502CR.

PART K - LOCAL TAX CREDIT SUMMARY

SPECIFIC INSTRUCTIONS

This part is to summarize the total local tax credit available from Part A.

Line 1

Enter the amount of excess carryover from Part X of your 2014

If the total from Part K, line 1 exceeds the local tax, the excess will not be

Form 500CR (if the carryover is attributable only to the CITC).

refunded. See the Instructions to Part A for questions concerning credit

claimed for taxes paid to multiple states and/or localities.

Line 2

Enter the amount of approved contributions on line 2.

PART L - REFUNDABLE INCOME TAX CREDITS

Line 3

Enter 50% of line 2.

Line 1

NEIGHBORHOOD STABILIZATION CREDIT

Line 4

Enter the amount from line 3 or $250,000, whichever is less.

If you live in the Hillendale, Northbrook, Pelham Woods or

Line 5

Add line 1 and line 4. Enter the result on line 5 and on Part J, line

Taylor/Dartmouth areas of Baltimore County, you may qualify

for this credit. Credit for homes purchased in Baltimore County

This credit is not refundable and is applied only against the Maryland

must have been applied for by December 31, 2005.

State income tax. To the extent the credit is earned in any year and it

After certification by Baltimore County, you may claim an income

exceeds the State income tax, you are entitled to an excess carryover

tax credit equal to the property tax credit granted by Baltimore

of the credit until it is used or it expires five years after the credit was

County. Enter the amount on Part L, line 1 and attach a copy of

earned, whichever comes first.

the certification.

For more information contact:

Line 2

SUSTAINABLE COMMUNITIES TAX CREDIT

Department of Housing and Community Development

Division of Neighborhood Revitalization

See instructions for Form 502S.

2 N. Charles St., Suite 450

Line 3

REFUNDABLE BUSINESS INCOME TAX CREDITS

Baltimore, MD 21202

410-209-5800

NOTE: You must file your income tax return electronically

to claim any of the refundable credits listed below:

See

Business

Tax

Credit

Form

500CR

Instructions

for

PART I – ENDOW MARYLAND INCOME TAX CREDIT

qualifications for the One Maryland Economic Development

A taxpayer who makes a donation to a qualified permanent endowment

Tax Credit, the Biotechnology Investment Incentive Tax Credit,

fund at an eligible community foundation may be eligible for a credit

the Cybersecurity Investment Incentive Tax Credit, the Health

against the Maryland State income tax. The taxpayer must apply to the

Enterprise Zone Hiring Credit, the Small Business Research &

Maryland Department of Housing and Community Development (DHCD)

Development Tax Credit, the Clean Energy Incentive Tax Credit

for a certification for the donation. This certification must be attached to

and the Film Production Activity Tax Credit. You may download

the Form 502CR at the time the Maryland income tax return is filed.

instructions from our Web site at

Individuals who are eligible to claim the Endow Maryland income tax

Line 4

IRC SECTION 1341 REPAYMENT CREDIT

credit, and who are not PTE members may elect to claim this credit on

If you repaid an amount this year reported as income on a prior

Part I of Form 502CR, instead of claiming the credit on Form 500CR.

year federal return that was greater than $3,000, you may

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

be eligible for an IRC Section 1341 Repayment credit. Attach

Form 502CR. PTE members who are eligible for this credit must claim the

documentation. For additional information, see Administrative

credit on Business Income Tax Credit Form 500CR.

Release 40.

Individuals who anticipate having a carryover of the Endow Maryland

Line 5

FLOW-THROUGH NONRESIDENT PTE TAX

income tax credit are advised to use Form 500CR, instead of Form 502CR

If you are the beneficiary of a trust or a Qualified Subchapter

The credit is limited to 25% of the approved donation (in cash or publicly

S Trust for which nonresident PTE tax was paid, you may be

traded securities) not to exceed $50,000.

entitled to a credit for your share of that tax. Enter the amount

NOTE: A copy of the required approval from the DHCD must be included

on this line and attach both the Maryland Schedule K-1 (504) for

with Form 502CR.

the trust and a copy of the Maryland Schedule K-1 (510) issued

to the trust by the PTE.

SPECIFIC INSTRUCTIONS

If you are a member of a PTE for which nonresident tax was paid,

Line 1

Enter the amount of approved donation to a qualified permanent

you may be entitled to a credit for your share of that tax. Enter

endowment fund.

the amount on this line and attach Maryland Schedule K-1 (510)

Line 2

Enter 25% of line 1.

issued to you and to the partnership, limited liability company, or

S Corporation, by the PTE.

Line 3

Enter the amount from line 2 or $50,000, whichever is less.

Also, enter this amount on line 9 of Part J.

Line 6

Add lines 1 through 5. Enter the total on the appropriate line of

the income tax form being filed.

This credit is not refundable and is applied only against the Maryland

State income tax. To the extent the credit is earned in any year and it

exceeds the State income tax, you are entitled to an excess carryover

of the credit until it is used, or it expires five years after the credit was

earned, whichever comes first.

NOTE: The amount of donation shown on line 1 requires an addition to

income. See Instruction 12 in the resident instruction.

For more information contact:

Department of Housing and Community Development

Division of Neighborhood Revitalization

2 N. Charles St., Suite 450

Baltimore, MD 21202

410-209-5800

endowmaryland.nr@maryland.gov

Instructions For Maryland Form 502cr - Income Tax Credits For Individuals - 2015 Page 4

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