Instructions For Form 500cr - Business Income Tax Credits

2013

BUSINESS INCOME TAX

MARYLAND

FORM

CREDITS INSTRUCTIONS

500CR

PART B – HEALTH ENTERPRISE ZONE HIRING TAX

tax return when claiming this tax credit.

CREDIT

No credit may be earned for any tax year beginning on or

General Requirements A Health Enterprise Zone (HEZ)

after January 1, 2016.

Practitioner may be eligible for tax credits based on wages paid

A nonrefundable HEZ Practitioner Tax Credit is available on

to qualified employees.

Maryland Form 502CR, Tax Credits for Individuals. Go to www.

A “Health Enterprise Zone Practitioner” is a health care practitioner

to download a copy of that form.

who is licensed or certified under the Maryland Health Occupations

For more information about the HEZ Hiring Tax Credit certification,

Article and who provides:

contact: DHMH.

•

Primary care, including obstetrics, gynecological services,

pediatric services, or geriatric services;

PART C - MARYLAND DISABILITY EMPLOYMENT TAX CREDIT

•

Behavioral health services, including mental health or

General Requirements Businesses that employ persons with

alcohol and substance abuse services; or,

disabilities, as determined by the Division of Rehabilitation

•

Dental services.

Services (DORS) in the Maryland State Department of Education

and/or by the Maryland Department of Labor, Licensing and

A “qualified employee” is a HEZ practitioner, community health

worker, or interpreter who:

Regulation (DLLR), may be eligible for tax credits for wages paid

to, and for child care expenses and transportation expenses paid

(1) Provides direct support to a HEZ practitioner; and

on behalf of, qualified employees.

(2) Expands access to services in a HEZ.

Qualifying employees with a disability are those who are certified

A qualified position is a full-time position of indefinite duration,

as such by the DORS (or by the DLLR for a disabled veteran).

which pays at least 150% of the federal minimum wage, is located

For certification or for additional information, contact:

in a HEZ, and is newly created as a result of the establishment or

expansion of services in a HEZ and is filled. A qualified position

Maryland State Department of Education

Division of Rehabilitation Services

does not include a position that is filled for a period of less than

12 months.

2301 Argonne Drive

Baltimore, MD 21218

A HEZ practitioner may claim a refundable credit of $10,000 for

1-888-554-0334 or 410-554-9442

hiring a qualified employee in a qualified position in a HEZ, as

certified by the Department of Health and Mental Hygiene (DHMH).

or,

To be eligible for the credit, the HEZ practitioner may create one or

Department of Labor, Licensing and Regulation

more qualified positions within a 24-month period. The $10,000

1100 N. Eutaw St., Room 201

credit must be taken over a 24-month period, with half of the credit

Baltimore, MD 21201

amount allowed beginning with the first year certified.

410-767-2047

Recapture Provision If the qualified position is filled for a period

A “Qualified Employee” with a disability means an individual who:

of less than 24 months, the tax credit will be recaptured. The tax

1. Meets the definition of an individual with a disability as

credit will be reduced on a prorated basis, based on the period of

defined by the Americans with Disability Act;

time the position was filled.

2. Has a disability that presently constitutes an impediment

For information on the location of HEZs and the standards which

to obtaining or maintaining employment or to transitioning

HEZ practitioners must meet to qualify, contact:

from school to work; and,

Maryland Department of Health and Mental Hygiene

3. Is ready for employment; or,

Health Systems & Infrastructure Administration

201 West Preston Street

4. Is a veteran who has been discharged or released from active

Baltimore, MD 21201

duty by the American Armed Forces for a service-connected

410-767-5612

disability.

raquel.samson@maryland.gov or

An employee must not have been hired to replace a laid-off

dhmh.hez@maryland.gov

employee or to replace an employee who is on strike or for whom

Specific Requirements

the business simultaneously receives federal or state employment

training benefits.

Complete lines 1 through 6 in Part B of Form 500CR if the HEZ

practitioner is located in a HEZ.

Qualifying child care expenses are those expenses incurred by

a business to enable a qualified employee with a disability to be

Line 1: Enter the amount of qualified employees certified by the

gainfully employed.

Department of Health and Mental Hygiene (DHMH) in the

First Year box.

Transportation expenses are those expenses incurred by a

business entity to enable a qualified employee with a disability

Line 2: Enter $5,000 for each qualified employee certified by the

to travel to and from work.

DHMH in their first year of employment.

Specific Requirements

Line 3: (Reserved for 2014)

Part C-I - Credit for employees with a disability hired. A

Line 4: Enter the sum of lines 2 and 3.

credit is allowed for each new employee with a disability for a two-

Line 5: Enter the refund recapture amount, if applicable as a

year period beginning with the year the employee was qualified.

positive number.

The credit for each disabled employee hired is equal to 30% of

the first $6,000 of qualified first year wages and 20% of the first

Line 6: Subtract line 5 from line 4 and enter the result on line 6

$6,000 of qualified second year wages.

and on line 4, Part Y. If the result is less than 0, enter as

a negative number.

The employer is not entitled to claim the credit until employment

has continued for at least one full year unless the employee:

Note: A copy of the DHMH certification must be included with your

13-49

Instructions For Form 500cr - Business Income Tax Credits - 2013 Page 3

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