Instructions For Form 500cr - Business Income Tax Credits

2013

MARYLAND

BUSINESS INCOME TAX

FORM

CREDITS INSTRUCTIONS

500CR

Electronic Format The paper version of Maryland Form 500CR

If you are a PTE claiming the One Maryland Economic

is no longer available.

You must file your Maryland

Development Tax Credit, refer to the instructions in Part P

return electronically to claim the business income credits

before completing the Maryland Form 510 Schedule K-1 for your

available from Form 500CR.

members. There are additional reporting requirements unique

to the One Maryland Credit.

Tax-exempt organizations Organizations that are tax-

exempt under Internal Revenue Code 501(c)3 may be

PTE member Any credit from a PTE filing a fiscal year return is

eligible to claim certain business tax credits against

considered to be received by the member(s) on the last day of

their withholding taxes. These qualified organizations no

the PTE’s fiscal year. The PTE member should claim the credit

longer will use Form 500CR, but will use Form 508CR

on the member’s tax return for the same year as the PTE’s fiscal

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

tax year for the beginning of the fiscal year, the credit is still

Release 34.

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

receiving a distributive or pro rata share of credits, the required

Purpose Maryland Form 500CR is used to claim the following

certification will have a different Taxpayer Identification Number

business tax credits against corporation and individual income tax.

than you have listed on your return for yourself, or for the

business. Please be sure to check the box as you begin to enter

Tax Credit

Part

Form 500CR information into your return. It is important that

Bio-Heating Oil Tax Credit**

you provide the PTE’s Federal Employer Identification Number

(FEIN) to ensure your credit is not disallowed. Check the box

Biotechnology Investment Incentive Tax Credit**

on page 1 of Form 500CR to indicate that credits are from a

Businesses That Create New Jobs Tax Credit

PTE and enter the PTE’s FEIN. Include the Maryland Form 510

Schedule K-1 from the PTEs showing your share of the credit

Cellulosic Ethanol Technology Research & Develop-

and any credits passing through to you.

ment Tax Credit**

Note: Some state agencies will only provide certification to the

Clean Energy Incentive Tax Credit**

parent of a corporation, which in turn passes the information

down to its subsidiaries. It is important to identify FEINs and

Community Investment Tax Credit**

business names in this situation to avoid processing delays.

Commuter Tax Credit

If credits are received from more than one entity, include a list

Electric Vehicle Recharging Equipment Tax Credit **

of the other entities with names, FEINs, type of credit and the

amount of credit for each entity providing credit information.

Employer-Provided Long-Term Care Insurance Tax

Credit

Exception: Credits received from PTEs If you have received

distributive or pro rata share of tax credits reported on a Form

Enterprise Zone Tax Credit**

510 Schedule K-1, you do not need to complete the calculations

Film Production Activity Tax Credit**

for the credit. The amount which you enter in each section

should be carried over to the appropriate fields in the Summary,

First-Year Leasing Costs Tax Credit for Qualified

J-II

Parts W, X or Y. In addition, PTE members that are corporations

Small Businesses**

or PTEs should complete Part Z.

Health Enterprise Zone Hiring Tax Credit**

Credits claimed by both spouses on a joint return Only one

Job Creation Tax Credit**

Form 500CR is completed, which will combine the amounts for

Long-Term Employment of Qualified Ex-Felons Tax

both spouses.

Credit

Other Information If a FEIN is to be used and has not been

Maryland Disability Employment Tax Credit

secured, enter “APPLIED FOR” followed by the date of application.

If you have not applied for a FEIN, please do so immediately.

Maryland Employer Security Costs Tax Credit**

J-I

Amended Returns You will need to file an electronic Maryland

Maryland-Mined Coal Tax Credit**

amended return to make changes affecting Form 500CR.

Maryland Wineries and Vineyards Tax Credit**

One Maryland Economic Development Tax Credit**

PART A - ENTERPRISE ZONE TAX CREDIT

Oyster Recycling Tax Credit**

General Requirements Businesses located in an enterprise zone

may be eligible for tax credits based upon wages paid to qualifying

Research and Development Tax Credits**

employees. For businesses located in a focus area (an area within

RESERVED FOR FUTURE USE

an enterprise zone that is especially in need) the credit amounts

are higher.

Sustainable Communities Tax Credit from Form 502S

Businesses that own, operate, develop, construct or rehabilitate

**Required Certification must be included with Form 500CR.

property intended for use primarily as single- or multi-family

residential property are not eligible for the enterprise zone tax

Pass-through entities (PTEs) If the business is a PTE, an

credit.

electronic Form 510 must be filed and the Form 500CR section

must be completed through line 23, Part W, for the PTE to pass on

Qualifying employees are those employees who:

these business tax credits to its members. The PTE must provide

Are new employees or employees rehired after being laid

a Maryland Form 510 Schedule K-1 to each partner, shareholder,

off for more than one year;

or member, or beneficiary with a statement showing their share of

each credit in Parts W, Y and Z. In addition, if the PTE is passing

Were employed at least 35 hours per week by the business

on the Sustainable Communities Tax Credit, it must complete

for at least six months before or during the business entity’s

the Form 502S section and enter the amount on line 1 of Part Z.

tax year for which a credit is claimed;

Required certification must be included.

13-49

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

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