Maryland Form 500cr - Business Income Tax Credits Instructions - 2014
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BUSINESS INCOME TAX
MARYLAND
FORM
CREDITS INSTRUCTIONS
500CR
Electronic Format The paper version of Maryland Form 500CR
Development Tax Credit, refer to the instructions in Part P
is no longer available.
You must file your Maryland return
before completing the Maryland Form 510 Schedule K-1 for your
electronically to claim the business income tax credits available
members. There are additional reporting requirements unique
from Form 500CR.
to the One Maryland Credit.
Tax-exempt organizations Organizations that are tax-exempt
PTE member Any credit from a PTE filing a fiscal year return is
under Internal Revenue Code 501(c)3 may be eligible to claim
considered to be received by the member(s) on the last day of
certain business tax credits against their withholding taxes. These
the PTE’s fiscal year. The PTE member should claim the credit
qualified organizations no longer will use Form 500CR, but will use
on the member’s tax return for the same year as the PTE’s fiscal
Form 508CR as an attachment to Form MW508 (Annual Employer
year end. Even though the K-1 listing the credit may reflect the
Withholding Reconciliation Return). See Administrative Release 34.
tax year for the beginning of the fiscal year, the credit is still
claimed in the year in which the PTE’s fiscal year ends.
GENERAL INSTRUCTIONS
Special Note for PTE Members: If you are a PTE member
Purpose Maryland Form 500CR is used to claim the following
receiving a distributive or pro rata share of credits, the required
business tax credits against corporation and individual income tax.
certification will have a different Taxpayer Identification Number
than you have listed on your return for yourself, or for the
Tax Credit
Part
business. Be sure to check the box as you begin to enter Form
Bio-Heating Oil Tax Credit**
R
500CR information into your return. It is important that you
provide the PTE’s Federal Employer Identification Number (FEIN)
Biotechnology Investment Incentive Tax Credit**
L
to ensure your credit is not disallowed. Check the box on page 1
Businesses That Create New Jobs Tax Credit
F
of Form 500CR to indicate that credits are from a PTE and enter
the PTE’s FEIN. Include the Maryland Form 510 Schedule K-1
Cellulosic Ethanol Technology Research & Develop-
S
from the PTEs showing your share of the credit and any credits
ment Tax Credit**
passing through to you.
Clean Energy Incentive Tax Credit**
N
Note: Some state agencies will only provide certification to the
parent of a corporation, which in turn passes the information
Community Investment Tax Credit**
E
down to its subsidiaries. It is important to identify FEINs and
Commuter Tax Credit
M
business names in this situation to avoid processing delays.
Cybersecurity Investment Incentive Tax Credit **
H
If credits are received from more than one entity, include a list
of the other entities with names, FEINs, type of credit and the
Electric Vehicle Recharging Equipment Tax Credit **
V
amount of credit for each entity providing credit information.
Employer-Provided Long-Term Care Insurance Tax
I
Exception: Credits received from PTEs If you have received
Credit
distributive or pro rata share of tax credits reported on a Form
Enterprise Zone Tax Credit**
A
510 Schedule K-1, you do not need to complete the calculations
for the credit. The amount which you enter in each section
Film Production Activity Tax Credit**
U
should be carried over to the appropriate fields in the Summary,
First-Year Leasing Costs Tax Credit for Qualified
Parts W, X or Y. In addition, PTE members that are corporations
J-II
Small Businesses**
or PTEs should complete Part Z.
Health Enterprise Zone Hiring Tax Credit**
B
Credits claimed by both spouses on a joint return Only one
Job Creation Tax Credit**
D
Form 500CR is completed, which will combine the amounts for
both spouses.
Maryland Disability Employment Tax Credit
C
Other Information If a FEIN is to be used and has not been
Maryland Employer Security Costs Tax Credit**
J-I
secured, enter “APPLIED FOR” followed by the date of application.
Maryland Wineries and Vineyards Tax Credit**
T
If you have not applied for a FEIN, do so immediately.
Maryland-Mined Coal Tax Credit**
O
Amended Returns You will need to file an electronic Maryland
amended return to make changes affecting Form 500CR.
One Maryland Economic Development Tax Credit**
P
Oyster Recycling Tax Credit**
Q
PART A - ENTERPRISE ZONE TAX CREDIT
Qualified Vehicle Tax Credit
G
General Requirements Businesses located in an enterprise
Research and Development Tax Credits**
K
zone may be eligible for tax credits based upon wages paid to
qualifying employees. For the purpose of claiming the credit,
Sustainable Communities Tax Credit from Form 502S
Z
Enterprise zones include Regional Institution Strategic
Enterprise (RISE) zones as defined in Section 5-1401(e) of
**Required Certification must be included with Form 500CR.
the Economic Development Article. For businesses located in
Pass-through entities (PTEs) If the business is a PTE, an
a focus area (an area within an enterprise zone that is especially
electronic Form 510 must be filed and the Form 500CR section
in need) the credit amounts are higher.
must be completed through line 23, Part W, for the PTE to pass on
Businesses that own, operate, develop, construct or rehabilitate
these business tax credits to its members. The PTE must provide
property intended for use primarily as single- or multi-family
a Maryland Form 510 Schedule K-1 to each partner, shareholder,
residential property are not eligible for the enterprise zone tax
or member, or beneficiary with a statement showing their share of
credit.
each credit in Parts W, Y and Z. In addition, if the PTE is passing
on the Sustainable Communities Tax Credit, it must complete
Qualifying employees are those employees who:
the Form 502S section and enter the amount on line 1 of Part Z.
1.
Are new employees or employees rehired after being laid
Required certification must be included.
off for more than one year;
If you are a PTE claiming the One Maryland Economic
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