Instructions For Form 500cr - Business Income Tax Credits

2013

BUSINESS INCOME TAX

MARYLAND

FORM

CREDITS INSTRUCTIONS

500CR

information provided in the final certificate and enter the amount

Form Schedules K-1 showing the allocated share of credit amount.

of the approved investment on line 1.

On line 2, Part L, enter 50% of the approved investment.

PART M - COMMUTER TAX CREDIT

Line 3, Part L, reflects the maximum dollar amount of credit per

A credit is allowed for businesses that conduct or operate a trade

investment ($250,000) and no entry is made on this line.

or business in Maryland and provide commuter benefits for their

On line 4, Part L, enter the lesser of line 2 or line 3.

employees.

On line 5, Part L, enter any applicable recapture amount. See

The business must pay a portion of the cost of travel between the

more information below about recapture amounts.

employee’s home and the workplace. Qualified commuter benefits

On line 6, Part L, subtract line 5 from line 4. If the amount is less

include the cost of transit instruments (tickets, passes, vouchers,

than zero, enter a negative amount.

fare cards, smartcards and tokens) used to transport an employee

of the business to or from home and the workplace. The portion of

Enter the amount from line 6, Part L, on line 2, Part Y.

the cost an employer pays to provide a “Guaranteed Ride Home”

Note: If you are claiming a credit for more than one investment,

program or for a parking “Cash-Out” program for their employees

another separate Part L must be completed for each investment.

also are qualified commuter benefits.

Total the amount from line 6, from each separate Part L. Using

Travel must be on a qualified mass transit vehicle or system, or

only one summary section, combine the total on line 2, Part Y. To

in a vanpool. The vanpool vehicle must seat at least 8 adults and

claim the total credit, you must complete a second Part L at the

be used primarily to transport employees between home and the

time you file your electronic income tax return.

workplace.

Required Statement and Recapture of Credit The statement

of affidavit must include the Taxpayer Identification Number and

The credit is the lesser of 50% of the cost of providing commuter

name of the investor, signature of the investor under penalties of

benefits or $50 per month for each employee.

perjury (or its authorized representative), and date.

Specific Instructions

The statement of affidavit must stipulate that if, within 2 years

On line 1, Part M, enter the amount of qualified commuter benefits

after the close of the tax year for which the credit is claimed, (1)

paid on behalf of employees.

the investor sells, transfers or disposes of the ownership interest

in the QMBC, for which this tax credit was certified, or, (2) the

On line 2, Part M, enter 50% of the amount entered on line 1.

QMBC ceases operating as an active business with its headquarters

and base of operations in Maryland, the investor must notify the

On line 3, Part M, enter the number of employees for which

Comptroller by reporting the applicable recapture amount on the

commuter benefits were paid.

investor’s Maryland tax return for the tax year in which the event

causing the recapture occurred.

On line 4, Part M, calculate the number of months covered by the

The applicable recapture amount is calculated by multiplying the

employees (employee months) listed on line 3 by $50.

total amount of the credit claimed (or in the case of a sale, transfer

or other disposition of the ownership interest, the portion of the

On line 5, Part M, enter the lesser of line 2 or line 4. This is the

credit attributable to the ownership interest disposed of), by one

credit amount.

of the following percentages:

Enter the amount from line 5, Part M, to line 13, Part W.

• 100%, if the event requiring recapture of the credit occurs

during the tax year for which the tax credit is claimed;

The amount of this credit is limited to the Maryland State tax on

• 67%, if the event requiring recapture of the credit occurs

the return and is not carried forward to another tax year.

during the first year after the close of the tax year for which

the tax credit is claimed; or,

For more information contact:

• 33%, if the event requiring recapture of the credit occurs

Mass Transit Administration, Marketing Division

more than 1 year but not more than 2 years after the close of

6 St. Paul Street, 2nd Floor

the tax year for which the tax credit is claimed. The amount

Baltimore, MD 21202-1614

of recapture is entered onto line 5, Part L.

410-767-8755

An investor’s credit also may be subject to a recapture if the

certificate is rescinded by DBED due to the investor failing

to provide the required notice to DBED of having made the

investment, or if DBED revokes the final certificate due to false

PART N - CLEAN ENERGY INCENTIVE TAX CREDIT

representations made in connection with application for the

This credit is allowed if a Maryland facility is originally placed in

certification. See Code of Maryland Regulations 24.05.03 for

service or initially began co-firing, during the period of 1/1/2006

rescission and revocation procedures.

through 12/31/2015 and produces electricity during the tax year

Pass-through entities If the credit is earned by an investor

primarily using qualified energy resources derived from:

that is a PTE, the members of the PTE may claim the distributive

• Wind

or pro rata shares of the credit amount subject to the $250,000

• Open and Closed Loop Biomass

limitation. A PTE that earned the Biotechnology Investment

• Geothermal

Incentive Tax Credit must electronically file the Maryland Form

510, Form 500CR and all other required attachments for members

• Solar

to be permitted to claim the credit. See Form 510 instructions.

• Small Irrigation

For a member of the PTE to be allowed the credit, the member

• Municipal Solid Waste

must complete the Form 500CR section of their electronically-

• Qualified Hydropower

filed Maryland return and include the following: copies of the final

The credit is 0.85 cents for each kilowatt hour of electricity

certification from DBED and statement of affidavit; and Maryland

13-49

Instructions For Form 500cr - Business Income Tax Credits - 2013 Page 8

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