Instructions For Form 502cr - Income Tax Credits For Individuals

PART D - CREDIT FOR AQUACULTURE OYSTER FLOATS

each spouse’s Maryland tax. In the case of a fiduciary return, the

fiduciary will complete the column for Taxpayer B only.

A credit is allowed for 100% of the amounts paid to purchase new

If the individual’s allowable credit amount exceeds the maximum

aquaculture oyster floats that are designed to grow oysters at or

of $5,000, the excess may be carried forward for up to 15 years

under an individual homeowner’s pier. The devices must be

or until fully used. Complete lines 1-7 of Part F. If you itemize

buoyant and assist in the growth of oysters for the width of the

deductions, see Instruction 14 in the Resident booklet.

pier. In the case of a joint return, each spouse is entitled to claim

For line 1, enter the amount by which the fair market value of the

the credit, provided each spouse purchases or contributes to the

property before the conveyance of the easement exceeds the fair

purchase of a float. The credit amount is limited to the lesser of

market value after the conveyance as substantiated by a certified

the individual's state tax liability for that year or the maximum

real estate appraiser, plus any carryover from the prior year.

allowable credit of $500. In the case of a joint return, each spouse

must calculate their own state tax liability for limitation purposes.

The carryover amount can be found on Part F line 7 of Form

502CR for tax year 2010.

PART E - LONG-TERM CARE INSURANCE CREDIT

For additional information, contact the Maryland Environmental

A one-time credit may be claimed against the state income tax

Trust at 410-514-7900 ( ), or the Mary-

for the payment of qualified long-term care (LTC) insurance pre-

land Agricultural Land Preservation Foundation at 410-841-5860.

miums as defined by the IRS (Publication 502) for a policy to

PART G - INCOME TAX CREDIT SUMMARY

insure yourself, or your spouse, parent, stepparent, child or

stepchild, who is a resident of Maryland.

This part is to summarize Parts A through F and the non-refund-

A credit may not be claimed if:

able portion of Heritage Structure Rehabilitation tax credits. If

the total from Part G, line 8 exceeds the state tax, the excess

a. the insured was covered by LTC insurance prior to July 1,

may not be refunded.

2000;

b. the credit for the insured is being claimed in this year by

PART H - REFUNDABLE INCOME TAX CREDITS

another taxpayer; or

Line 1 - NEIGHBORHOOD STABILIzATION CREDIT

c. the credit is being or has been claimed by anyone in any

other tax year.

If you live in the Waverly or Landsdowne sections of Baltimore City,

The credit is equal to the LTC premiums paid with a maximum

or in the Hillendale, Northbrook, Pelham Woods, or Taylor/

per insured of:

Dartmouth areas of Baltimore County, you may qualify for this

credit. Credit for homes purchased in Baltimore City must have

Amount

Age of Insured as of 12/31/11

been applied for by December 31, 2002. Credit for homes pur-

$340

40 or less

chased in Baltimore County must have been applied for by Decem-

$500

over 40 years

ber 31, 2005. After certification by Baltimore City or Baltimore

County, you may claim an income tax credit equal to the property

SPECIFIC INSTRUCTIONS

tax credit granted by Baltimore City or Baltimore County. Enter the

• Answer Questions 1 through 3. If you answered “yes” for any

amount on line 1 of Part H and attach a copy of the certification.

of the questions, no credit is allowed for that individual.

Line 2 - HERITAGE STRUCTURE REHABILITATION TAX

• Complete Columns A through D of the worksheet for each

CREDIT AND SUSTAINABLE COMMUNITIES TAX CREDIT

qualifying insured individual who qualifies for the credit. If

more space is required, attach a separate statement.

See instructions for Form 502H and Form 502S.

• Enter in Column E the amount of premiums paid for each qual-

Line 3 - REFUNDABLE BUSINESS INCOME TAX CREDIT

ifying insured individual up to the maximum for that age group.

• Add the amounts in Column E and enter the total on line 5.

See Form 500CR for qualifications and instructions for the One

Also enter this amount on line 5, Part G.

Maryland Economic Development Tax Credit, the Biotechnology

Investment Incentive Tax Credit, Job Creation and Recovery Tax

PART F - CREDIT FOR PRESERVATION AND

Credit, the Clean Energy Incentive Tax Credit and Film Production

CONSERVATION EASEMENTS

Employment Tax Credit.

If you donated an easement to the Maryland Environmental Trust

or the Maryland Agricultural Land Preservation Foundation to

Line 4 - IRC SECTION 1341 REPAYMENT CREDIT

preserve open space, natural resources, agriculture, forest land,

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

watersheds, significant ecosystems, viewsheds or historic prop-

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

erties, you may be eligible for a credit if:

be eligible for an IRC Section 1341 Repayment credit. Attach

1. the easement is perpetual;

documentation. For additional information, see Administrative

2. the easement is accepted and approved by the Board of

Release 40.

Public Works and

Line 5 - FLOW-THROUGH NONRESIDENT PTE TAX

3. the fair market value of the property before and after the

conveyance of the easement is substantiated by a

If you are the beneficiary of a Trust or a Qualified Subchapter S

certified real estate appraiser.

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

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

The credit is equal to the difference in the fair market values of

this line and attach both the Form 1041 Schedule K-1 for the

the property reduced by payments received for the easement.

trust (or Form 504 Schedule K-1) and a copy of the K-1 issued

If the property is owned jointly by more than one individual such

to the trust by the PTE.

as a husband and wife, each individual owner is entitled to

the credit based on their percentage of ownership. Individual

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

members of a pass-through entity are not eligible for this credit.

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

The credit amount is limited to the lesser of the individual’s state

the amount on this line and attach the federal Schedule K-1 and

tax liability for that year or the maximum allowable credit of

Form 510 Schedule K-1(or a Form 510 Schedule K-1 equivalent

$5,000, per owner, who qualifies to claim the credit. Complete a

statement) issued to you and to the partnership, limited liability

separate column in the worksheet for each spouse. In the case

company, or S Corporation, by the PTE.

of a joint return, each spouse must calculate their own state

Line 6 - Add lines 1 through 5 and enter the total on the appro-

tax liability for limitation purposes. Use the rules for filing sepa-

priate line of the income tax form being filed.

rate returns in Instruction 8 in the Resident booklet to calculate

free ifile visit us at

Instructions For Form 502cr - Income Tax Credits For Individuals - 2011 Page 3

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