Maryland Business Income Tax Credits

Business Income Tax Credits
500CRW_CR_49 012423 A
MARYLAND
FORM

500CRW

2022

WAIVER REQUEST
FOR ELECTRONIC
FILING OF FORM
500CR

This form must be Attached to form 500CR

OR FISCAL YEAR BEGINNING	

2022, ENDING	

Print Using Blue or Black Ink Only

Check here for Identity Theft
Federal Employer Identification Number (9 digits) or Social Security Number

Name

Current Mailing Address Line 1 (Street No. and Street Name or PO Box)

Current Mailing Address Line 2 (Apt No., Suite No., Floor No.)

State	

City or Town	

ZIP Code + 4

Foreign Province/State/County	

Foreign Country Name	

Foreign Postal Code

Reason For Waiver Request (check only one):
A.

Do not have access to a computer.

B.

Software does not support electronic filing of Form 500CR.

C.

Other (explain)________________________________________________________________________________
____________________________________________________________________________________________

Signature	

Date

Instructions
Use this form to request a waiver from filing the Form 500CR
electronically. You must include a reason for the waiver
request. If a reason is not checked or an explanation given as
to why you cannot file electronically, the Form 500CR will not
be processed.
The waiver request should be included with the Form
500CR in the filing of your return.

COM/RAD-007-1

MARYLAND
FORM

500CR
OR FISCAL YEAR BEGINNING	

Name as shown on Form

2022

BUSINESS INCOME
TAX CREDITS

Page 1

ATTACH TO FORM 500, 502, 505,
510, OR 511.

2022, ENDING	

FEIN

SEE INSTRUCTIONS Note: **Indicates Certification Must Be Included
Check this box if any of the 500CR credits are derived from another entity, see instructions
for details.

FEIN

Check this box if the filing entity meets the corporate diversity criteria, see instructions for
details.
PART A - ENTERPRISE ZONE TAX CREDIT ** Must Include Required Certification
PART A-I	
CREDIT FOR ECONOMICALLY DISADVANTAGED EMPLOYEES NOT LOCATED IN A FOCUS AREA
  1. Number of qualified employees.	 First year
Second year	
Third year
  2. Credit for first year (limited to $3,000 of wages paid to each employee). . . . . . . . . . . . . . . . .  2.
  3. Credit for second year (limited to $2,000 of wages paid to each employee). . . . . . . . . . . . . . .  3.
  4. Credit for third year (limited to $1,000 of wages paid to each employee). . . . . . . . . . . . . . . . .  4.
  5. Total (Add lines 2, 3 and 4.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
CREDIT FOR OTHER QUALIFIED EMPLOYEES NOT LOCATED IN A FOCUS AREA
PART A-II	
  6. Number of qualified employees eligible for credit not included in PART A-I. . . . . . . . . . . . . . . .  6.
  7. Credit (limited to $1,000 of wages paid to each employee). . . . . . . . . . . . . . . . . . . . . . . . . . .  7.
PART A-III	 CREDIT FOR ECONOMICALLY DISADVANTAGED EMPLOYEES LOCATED IN A FOCUS AREA
  8.	 Number of focus area employees.	 First year	
Second year	
Third year
9. Credit for first year (limited to $4,500 of wages paid to each employee). . . . . . . . . . . . . . . . .  9.
10. Credit for second year (limited to $3,000 of wages paid to each employee). . . . . . . . . . . . . . .  10.
11. Credit for third year (limited to $1,500 of wages paid to each employee). . . . . . . . . . . . . . . . .  11.
12. Total (Add lines 9, 10 and 11.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
CREDIT FOR OTHER QUALIFIED EMPLOYEES LOCATED IN A FOCUS AREA
PART A-IV	
13. Number of focus area employees eligible for credit not included in PART A-III. . . . . . . . . . . . . 13.
14. Credit (limited to $1,500 of wages paid to each employee). . . . . . . . . . . . . . . . . . . . . . . . . . .  14.

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PART A - SUMMARY
if claiming credit for business located in a RISE zone.
Check here
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15. Total Enterprise Zone Tax Credit for the current tax year (Add lines 5, 7, 12 and 14.). . . . . . . . 15.
PART B - SMALL BUSINESS RELIEF TAX CREDIT ** Must Include Required Certification
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1. Credit (certified by the Maryland Department of Commerce) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
PART C - MARYLAND DISABILITY EMPLOYMENT TAX CREDIT FOR EMPLOYEES ** Must Include Required Certification
PART C-I	
CREDIT FOR EMPLOYEES WITH A DISABILITY
1. Number of qualified employees.	
First year
Second year
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2. Credit for first year (30% of first $15,000 of wages paid to each employee). . . . . . . . . . . . . . .  2.
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3. Credit for second year (30% of first $15,000 of wages paid to each employee) . . . . . . . . . . . .  3.
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4. Total (Add lines 2 and 3.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4.
PART C-II	
CREDIT FOR CHILD CARE AND TRANSPORTATION EXPENSES
5. Number of qualified employees.	 First year
Second year
6. Credit for first year (limited to a combined total of $1,500 in child care and transportation
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expenses per qualified employee with a disability) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6.
7. Credit for second year (limited to a combined total of $1,500 in child care and
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transportation expenses per qualified employee with a disability) . . . . . . . . . . . . . . . . . . . . .  7.
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8. Total (Add lines 6 and 7.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8.
PART C - SUMMARY
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9. Total Maryland Disability Employment Tax Credit for the current tax year (Add lines 4 and 8.) . .  9.
PART D - JOB CREATION TAX CREDIT ** Must Include Required Certification
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1.
Credit (certified by the Maryland Department of Commerce). . . . . . . . . . . . . . . . . . . . . . . . . . 1.

COM/RAD-007

MARYLAND
FORM

500CR
Name as shown on Form

PART E
1.	
2.	
3.	
PART F
1.	
2.	
3.	

2022

BUSINESS INCOME
TAX CREDITS

Page 2

ATTACH TO FORM 500, 502, 505,
510, OR 511.

FEIN

- COMMUNITY INVESTMENT TAX CREDIT ** Must Include Required Certification
Amount of approved contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
Enter 50% of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.
Enter the amount from line 2 or $250,000, whichever is less. . . . . . . . . . . . . . . . . . . . . . . . .  3.
- BUSINESSES THAT CREATE NEW JOBS TAX CREDIT
Property tax credit (certified by the State Department of Assessments and Taxation) . . . . . . .  1.
Enhanced property tax credit (certified by the State Department of Assessments and Taxation). 2.
Total (Add lines 1 and 2.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.

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PART G - CATALYTIC REVITALIZATION PROJECTS AND HISTORIC REVITALIZATION TAX CREDIT
** Must Include Required Certification
1.	 Credit (certified by Maryland Department of Commerce). . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
PART H - CYBERSECURITY INCENTIVE TAX CREDITS ** Must Include Required Certification
NOTE: If you are claiming more than one investment, see instructions for PART H-I.
PART H-I CREDIT FOR INVESTORS IN CYBERSECURITY
1. 	 Amount of approved investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
2. 	 Enter 33% of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.
NOTE:	See Special Instructions for Maryland Cybersecurity Companies located in Allegany County,
Dorchester County, Garrett County, or Somerset County.
3. 	 Maximum Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.
NOTE:	See Special Instructions for Maryland Cybersecurity Companies located in Allegany County,
Dorchester County, Garrett County, or Somerset County.
4. 	 Tentative refund (enter the amount from line 2 or line 3, whichever is less). . . . . . . . . . . . . . .  4.
5. 	 Enter any amount of recapture. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5.
6. 	 Total credit for investors in cybersecurity. (Subtract line 5 from line 4 and enter this amount
here and in PART CCC, line 7. If less than zero, enter negative amount.).. . . . . . . . . . . . . . . .  6.
PART H-II- CREDIT FOR BUYERS OF CYBERSECURITY TECHNOLOGY and/or CYBERSECURITY SERVICES
7.	 Credit (certified by the Maryland Department of Commerce). . . . . . . . . . . . . . . . . . . . . . . . . .  7.
8.	 Enter any amount of recapture. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9.	 Total credit for buyers of cybersecurity technology and/or cybersecurity services (subtract
line 8 from line 7 and enter this amount here and in PART AAA, line 8. If less than zero,
enter negative amount.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
PART I - EMPLOYER-PROVIDED LONG-TERM CARE INSURANCE TAX CREDIT
1. 	 Enter 5% of long-term care insurance costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
2. 	 Multiply the number of eligible employees  
by $100 . . . . . . . . . . . . . . . . . . . . . . .  2.
3. 	 Enter the lesser of line 1 or line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.
4. 	 Enter the lesser of line 3 or $5,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4.
PART J - RESERVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
PART K - RESEARCH AND DEVELOPMENT TAX CREDITS ** Must Include Required Certification
PART K-I	
TO BE COMPLETED IF THE BUSINESS IS NOT CERTIFIED AS A “SMALL BUSINESS”
FOR THIS CREDIT
  1.	 Basic credit (3%) as certified by the Maryland Department of Commerce . . . . . . . . . . . . . . . .  1.
  2.	 Growth credit (10%) as certified by the Maryland Department of Commerce. . . . . . . . . . . . . .  2.
  3.	 Total (Add lines 1 and 2.) Enter here and on Line 11 of PART AAA.. . . . . . . . . . . . . . . . . . . . .  3.
PART K-II	
TO BE COMPLETED IF THE BUSINESS IS CERTIFIED AS A “SMALL BUSINESS”
FOR THIS CREDIT
  4.	 Basic credit (3%) as certified by the Maryland Department of Commerce . . . . . . . . . . . . . . . .  4.
  5.	 Growth credit (10%) as certified by the Maryland Department of Commerce. . . . . . . . . . . . . .  5.
  6.	 Total (Add lines 4 and 5.) Enter here and on Line 6 of PART CCC. . . . . . . . . . . . . . . . . . . . . . .  6.

COM/RAD-007

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MARYLAND
FORM

500CR
Name as shown on Form

2022

BUSINESS INCOME
TAX CREDITS

Page 3

ATTACH TO FORM 500, 502, 505,
510, OR 511.

FEIN

PART L - BIOTECHNOLOGY INVESTMENT INCENTIVE TAX CREDIT ** Must Include Required Certification
NOTE: If you are claiming more than one investment see instruction for PART L.
1. Amount of approved investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
2. Multiply line 1 by the applicable percentage. (See Instructions) . . . . . . . . . . . . . . . . . . . . . . .  2.
NOTE:	See Special Instructions for Maryland Biotechnology Companies located in Allegany County,
Dorchester County, Garrett County, or Somerset County.
3. Maximum Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
NOTE:	See Special Instructions for Maryland Biotechnology Companies located in Allegany County,
Dorchester County, Garrett County, or Somerset County.
4. Tentative refund (Enter the amount from line 2 or line 3, whichever is less.). . . . . . . . . . . . . .  4.
5. Enter any amount of recapture. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5.
6. Total Biotechnology Investment Incentive Tax Credit (Subtract line 5 from line 4 and enter this
amount here and in PART CCC, line 2. If less than zero, enter negative amount.). . . . . . . . . . .  6.
PART M - COMMUTER TAX CREDIT
1. Amount of commuter benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
2. Enter 50% of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.
3. Number of employees for which commuter benefits were paid. . . . . . . . . . . . . . . . . . . . . . . .  3.
4. Multiply the number of employee-months
by $100. . . . . . . . . . . . . . . . . . . . . . . . . . .  4.
5. Enter the lesser of line 2 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5.
PART N - CLEAN ENERGY INCENTIVE TAX CREDIT ** Must Include Required Certification
  1. 	 Enter the number of kilowatt hours of electricity not co-fired with coal
.
Multiply this number by .85 cents (.0085). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
2. Enter one-fifth of the amount stated on the initial credit certificate . . . . . . . . . . . . . . . . . . . .  2.
3. Enter the lesser of line 1 or line 2. Enter this amount in PART CCC, line 3 . . . . . . . . . . . . . . . .  3.
PART O - WORK OPPORTUNITY TAX CREDIT
1. Federal work opportunity credit. Enter the amount from federal Form 3800, Part III, line 4b.. . . 1.
2. Multiply qualified first-year wages used to calculate the federal work opportunity credit paid to

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Maryland employees who worked for you at least 120 hours but fewer than 400 hours
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by .25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Multiply qualified first-year wages used to calculate the federal work opportunity credit paid to
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Maryland employees who worked for you at least 400 hours	
by .4. . 3.
4. Multiply qualified second-year wages used to calculate the federal work opportunity credit paid
to Maryland employees certified as long-term family assistance recipients
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by .5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4.
5. Work Opportunity Credit from Partnerships, S-Corps, Cooperatives, Estates, and Trusts
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attributable to wages paid to Maryland employees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
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6. Maryland work opportunity credit. Add lines 2, 3, 4, and 5 and multiply by .5 . . . . . . . . . . . . . . 6.
PART P-1 - ONE MARYLAND ECONOMIC DEVELOPMENT TAX CREDIT CERTIFIED AFTER JUNE 30, 2018
**Must Include Required Certification
Column 2
Column 1
PART P-I	
CALCULATION OF TAXABLE INCOME, WITHHOLDING,
PTE members only
All qualified persons,
QUALIFIED EMPLOYEES AND TAX LIABILITY
(enter your pro rata
but NOT PTE members
share from PTE)
Section A
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1.	 Enter your Maryland taxable income (See instructions for PART P-I). . . . 1.
2a.	 Enter the number of qualified employees (DO NOT PRORATE.). . . . . . 2a.
The minimum number of qualified employees is 50 to qualify for the project tax credit having the maximum amount of
$5,000,000; or 25 for $2,500,000; or 10 for $1,000,000.
2b.	 Have you maintained at least the minimum number of qualified employees
required to qualify for the project tax credit for at least 5 years? . . . . . . . . . 	
Yes	No	 Yes	No
NOTE: If line 2a is less than the minimum number of qualified employees required to qualify for the project tax credit, and the
answer to Question is “No,” STOP HERE. You may not claim this tax credit.
NOTE: If line 2a is less than 10, STOP HERE. You may not claim this tax credit.

COM/RAD-007

MARYLAND
FORM

500CR

2022

BUSINESS INCOME
TAX CREDITS

Page 4

ATTACH TO FORM 500, 502, 505,
510, OR 511.

Name as shown on Form

2c.	 Prorate factor (Enter line 2a divided by the minimum number of qualified
employees required to qualify for the project tax credit; if greater than 1,
enter 1.000000.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2c.
3.
Enter the amount of Maryland income tax required to be withheld from
qualified employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
If PTE, do not complete Section B. Continue to Section C.
Section B
4a.	 Total tax liability: line 14 of Form 500, line 21 less any amounts from
lines 22 through 24 of Form 502; or, line 32c less any amounts from
lines 33 and 34 of Form 505. If less than 0, enter 0. . . . . . . . . . . . . . . 4a.
PTE member: Multiply the income on line 1, Section A, by the highest
tax rate used to calculate the tax on your Maryland tax return. Enter this
amount on line 4a.
4b.	 Multiply line 4a by line 2c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4b.
Section C
Total eligible project costs ($500,000 minimum). . . . . . . . . . . . . . . . . . 5.
5.
6.
Enter the lesser of line 5 or allowable maximum project tax credit based
on the number of qualified employees. (See instructions) . . . . . . . . . . . 6.
If you are a PTE, stop here. Do not complete Parts II through IV.

FEIN
Column 1
All qualified persons,
but NOT PTE members

.

Column 2
PTE members only
(enter your pro rata
share from PTE)

.
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PART P-II CREDIT AGAINST TAX LIABILITY AND TAX ON INCOME OF THE QUALIFIED BUSINESS ENTITY
Complete Part P-II to calculate the portion of the credits allowable for this tax year that will reduce
your tax liability.
Enter the sum of project cost credits and refunds taken in prior tax years. . . . . . . . . . . . . . . . .  7.
7.
8.
Subtract line 7 from line 6; if less than 0, enter 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9.
Eligible Maryland State tax liability on income of the qualified business entity
(Enter the amount from line 4b.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Credit against tax on the income of qualified business entity (Enter the lesser of line 8 or line 9.).10.

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PART P-III Refundable Credit
11. Tentative refund (Credit remaining after deducting credit against tax on the income of the
qualified business entity.)(Subtract line 10 from line 8. If less than 0, enter 0.) . . . . . . . . . . . .  11.
12. Maryland income tax required to be withheld during this tax year from qualified employees
(Enter the amount from line 3.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13. Refund allowable for this tax year. Enter the lesser of line 11 or line 12 . . . . . . . . . . . . . . . . . 13.

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PART P-IV Summary
14. Total nonrefundable One Maryland Economic Development Tax Credit.
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(Enter the amount from line 10.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14.
15. Total refundable One Maryland Economic Development Tax Credit.
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(Enter the amount from line 13.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
PART P-2 - ONE MARYLAND ECONOMIC DEVELOPMENT TAX CREDIT CERTIFIED BEFORE JULY 1, 2018
** Must Include Required Certification
Column 1
Column 2
PART P-I CALCULATION OF TAXABLE INCOME, WITHHOLDING,
All qualified persons, but
PTE members only (enter
NOT PTE members
your pro rata share from
QUALIFIED EMPLOYEES AND TAX LIABILITY
PTE)
Section A
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1. Enter your Maryland taxable income (See instructions for PART P-I.). . 1.
2.
3.

Enter your share of Maryland taxable income from the project. . . . . . . 2.
Non-project Maryland taxable income (Subtract line 2 from line 1.
If less than 0, enter 0.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4a.	 Enter the number of qualified employees (DO NOT PRORATE.) . . . . . 4a.
4b.	 Have you maintained at least 25 qualified employees for at least 5 years? 	 Yes	
4c.	 Tax year in which the project was put in service: . . . . . . . . . . . . . . . . 4c.

COM/RAD-007

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No		Yes	

No

MARYLAND
FORM

500CR
Name as shown on Form

2022

BUSINESS INCOME
TAX CREDITS

Page 5

ATTACH TO FORM 500, 502, 505,
510, OR 511.

FEIN
Column 1
All qualified persons, but
NOT PTE members

NOTE: If line 4a is less than 25, and the answer to Question is “No,”
STOP HERE. You may not claim this tax credit.
NOTE: If line 4a is less than 10, STOP HERE. You may not claim this tax credit.
4d.	 Prorate factor (Enter line 4a divided by 25; if greater than 1, enter 1.000000.) . 4d.
.
5. Enter the amount of Maryland income tax required to be withheld
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from qualified employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5.
If PTE, do not complete Section B. Continue to Section C.
Section B
6. Total tax liability:
line 14 of Form 500,
line 21 less any amounts from lines 22 through 24 of Form 502; or,
line 32c less any amounts from lines 33 and 34 of Form 505.
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If less than 0, enter 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6.
PTE member: Multiply the highest tax rate calculated on your return by the income on line 1.
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7a.	 Tax on income from the project (See instructions for PART P-I.) . . . .  7a.
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7b.	 Multiply line 7a by line 4d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7b.
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8a.	 Tax on non-project income (Subtract line 7a from line 6. If less than 0, enter 0.) . 8a.
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8b.	 Multiply line 8a by line 4d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8b.
Section C
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9. Total eligible project costs ($500,000 minimum) . . . . . . . . . . . . . . .  9.
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10. Enter the lesser of line 9 or $5,000,000 . . . . . . . . . . . . . . . . . . . . . . . 10.
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11. Total eligible start-up costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
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12. Enter the lesser of line 11 or $500,000. . . . . . . . . . . . . . . . . . . . . . . . 12.
.00
13. Multiply line 4a by $10,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13.
If you are a PTE, stop here. Do not complete Parts II through IV.
PART P-II	 CREDIT AGAINST TAX LIABILITY AND TAX ON INCOME FROM THE PROJECT
Complete Part P-II to calculate the portion of the credits allowable for this tax year that
will reduce your tax liability.
Section A Project Costs
14. Enter the sum of project cost credits and refunds taken in prior tax years. . . . . . . . . . . . . . . .  14.
15. Subtract line 14 from line 10; if less than 0, enter 0.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16. Maryland State tax liability on income from the project (Enter the amount from line 7b.). . . . .  16.
17. Credit against tax on income from the project (Enter the lesser of line 15 or line 16.). . . . . . . .  17.
Section B Start-up Costs
18. Enter the sum of start-up cost credits and refunds taken in prior tax years. . . . . . . . . . . . . . . 18.
19. Subtract line 18 from line 12. If less than 0, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19.
20. Enter the lesser of line 13 or line 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.
21. Remaining Maryland State tax liability after deducting credits taken for project costs in
Section A (Subtract line 17 from line 6. If less than 0, enter 0.) . . . . . . . . . . . . . . . . . . . . . . .  21.
22. Nonrefundable portion of the start-up credit. This amount cannot exceed any
remaining tax liability. (Enter the lesser of line 20 or line 21.). . . . . . . . . . . . . . . . . . . . . . . . . 22.
PART P-III 	 Refundable Credit
Section A Project costs
23. Credit remaining after deducting credit against tax on income from the project
(Subtract line 17 from line 15. If less than 0, enter 0.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.
24. Tax on non-project income (Enter the amount from line 8b.) . . . . . . . . . . . . . . . . . . . . . . . . .  24.
25. Tax available for application of credit
(Subtract line 17 and line 22 from line 6. If less than 0, enter 0.). . . . . . . . . . . . . . . . . . . . . . 25.
26. Credit against tax on non-project income (Enter the lesser of lines 23, 24 or line 25.) . . . . . . . 26.
27. Tentative refund (Subtract line 26 from line 23. If less than 0, enter 0.) . . . . . . . . . . . . . . . . .  27.

COM/RAD-007

Column 2
PTE members only (enter
your pro rata share from
PTE)

.
.00

.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
All qualified persons
(except for PTEs) including
PTE members

.00
.00
.00
.00
.00
.00
.00
.00
.00

.00
.00
.00
.00
.00

MARYLAND
FORM

500CR
Name as shown on Form

2022

BUSINESS INCOME
TAX CREDITS

Page 6

ATTACH TO FORM 500, 502, 505,
510, OR 511.

FEIN

28.	 Maryland income tax required to be withheld during this tax year from qualified employees
(Enter the amount from line 5.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.
29.	 Refund allowable for this tax year. Subtract line 26 from line 28 (If less than 0, enter 0.)
and enter this amount or line 27, whichever is less.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.
Section B Start-up costs
30.	 Tentative refund (Subtract line 22 from line 20. If less than 0, enter 0.) . . . . . . . . . . . . . . . . . 30.
31.	 Maryland income tax required to be withheld during this tax year from qualified employees
(from line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  31.
32.	 Refund allowable for this tax year (Enter the lesser of line 30 or line 31.) . . . . . . . . . . . . . . . . 32.
PART P-IV 	 Summary
33.	 Total nonrefundable credit for project costs (Enter the sum of line 17 and line 26.) . . . . . . . . . 33.
34.	 Total nonrefundable credit for start-up costs (Enter amount from line 22.) . . . . . . . . . . . . . . . 34.
35.	 Total nonrefundable One Maryland Economic Development Tax Credit. (Add lines 33 and 34.). . 35.
36.	 Total refundable credit for project costs. (Enter amount from line 29.) . . . . . . . . . . . . . . . . . . 36.
37.	 Total refundable credit for start-up costs. (Enter amount from line 32.). . . . . . . . . . . . . . . . . .  37.
38.	 Total refundable One Maryland Economic Development Tax Credit. (Add lines 36 and 37.).. . . . 38.
PART Q - OYSTER SHELL RECYCLING TAX CREDIT ** Must Include Required Certification
  1.	 Credit (certified by the Maryland Department of Natural Resources). . . . . . . . . . . . . . . . . . . .  1.
PART R - ENERGY STOR AGE SYSTEMS TAX CREDIT ** Must Include Required Certification
  1.	 Credit (certified by the Maryland Energy Administration). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
PART S - MORE JOBS FOR MARYLANDERS TAX CREDIT ** Must Include Required Certification
  1.	 Credit (certified by the Maryland Department of Commerce) . . . . . . . . . . . . . . . . . . . . . . . . .  1.
PART T - RESERVED
 1.	 RESERVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.	 XXXXXXXXXXX
PART U - FILM PRODUCTION ACTIVITY TAX CREDIT ** Must Include Required Certification
  1.	 Credit (certified by the Maryland Department of Commerce) . . . . . . . . . . . . . . . . . . . . . . . . .  1.
PART V - ENDOW MARYLAND TAX CREDIT ** Must Include Required Certification
  1.	 Amount of approved donation to a qualified permanent endowment fund . . . . . . . . . . . . . . . .  1.
  2.	 Enter 25% of line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.
  3.	 Enter the amount from line 2 or $50,000, whichever is less. . . . . . . . . . . . . . . . . . . . . . . . . .  3.
PART W - THEATRICAL PRODUCTION TAX CREDIT ** Must Include Required Certification
  1.	 Credit (certified by the Maryland Department of Commerce) . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
PART X - PRESERVATION AND CONSERVATION EASEMENTS Tax Credit ** Must Include Required Certification
  1.	 Enter the portion of the total current-year conveyance amount . . . . . . . . . . . . . . . . . . . . .  1.
  2.	 Enter the amount of any payment received for the easement during 2022. . . . . . . . . . . . . . .  2.
  3.	 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.
  4.	 Enter the lesser of line 3 or $5,000 here and on Part AAA, line 24 . . . . . . . . . . . . . . . . . . . .  4.
PART Y - APPRENTICE EMPLOYEE TAX CREDIT ** Must Include Required Certification
  1.	 Total number of eligible apprentices for the current year. . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
  2.	 Multiply line 1 by $1,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.
PART Z - QUALIFIED FARMS TAX CREDIT ** Must Include Required Certification
  1.	 Credit (Total of Tax Credit Certificates) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
PART AA - RESERVED
XXXXXXXXXXX
 1.	 RESERVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
PART BB - ENDOWMENTS OF MARYLAND HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
TAX CREDIT ** Must Include Required Certification
  1. Credit (certified by Maryland Comptroller's office). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
PART AAA - BUSINESS TAX CREDIT SUMMARY
  1.	 Total Enterprise Zone Tax Credit from PART A, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
XXXXXXXXXXX
  2.	 Small Business Relief Tax Credit (See PART CCC, line 4.). . . . . . . . . . . . . . . . . . . . . . . . . . .  2.
  3.	 Total Maryland Disability Employment Tax Credit from PART C, line 9. . . . . . . . . . . . . . . . . .  3.

COM/RAD-007

.00
.00
.00
.00
.00

.00
.00
.00
.00
.00
.00
.00
.00

.00
.00
.00
.00
.00
.00
.00
.00
.00

.00
.00

.00
.00
.00

MARYLAND
FORM

500CR
Name as shown on Form

2022

BUSINESS INCOME
TAX CREDITS

Page 7

ATTACH TO FORM 500, 502, 505,
510, OR 511.

FEIN

.00
Total Job Creation Tax Credit from PART D, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4.
.00
Total Community Investment Tax Credit from PART E, line 3 . . . . . . . . . . . . . . . . . . . . . . . .
5.
.00
Total Businesses that Create New Jobs Tax Credit from PART F, line 3. . . . . . . . . . . . . . . . . .  6.
Total Catalytic Revitalization Projects and Historic Revitalization Tax Credit (see PART CCC, line 10). . . . 7.
XXXXXXXXXXX
Total nonrefundable credit for buyers of cybersecurity technology and/or cybersecurity
.00
services from PART H-II, line 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8.
.00
  9.	 Total Employer-Provided Long-Term Care Insurance Tax Credit from PART I, line 4. . . . . . . . .  9.
10.	RESERVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
XXXXXXXXXXX
.00
11.	 Total nonrefundable Research and Development Tax Credits from PART K-I, line 3. . . . . . . . .  11.
12.	 Total Biotechnology Investment Incentive Tax Credit (See PART CCC, line 2.) . . . . . . . . . . . .  12.
XXXXXXXXXXX
.00
13.	 Total Commuter Tax Credit from PART M, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13.
14.	 Total Clean Energy Incentive Tax Credit (See PART CCC, line 3.). . . . . . . . . . . . . . . . . . . . . .  14.
XXXXXXXXXXX
.00
15.	 Work Opportunity Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15.
16.	 Total nonrefundable One Maryland Economic Development Tax Credit from PART P-IV;
.00
if more than one project, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16.
.00
17.	 Total Oyster Shell Recycling Tax Credit from PART Q, line 1. . . . . . . . . . . . . . . . . . . . . . . . .  17.
.00
18.	 Total Energy Storage Systems Tax Credit from PART R, line 1 . . . . . . . . . . . . . . . . . . . . . . .  18.
19.	 Total More Jobs for Marylanders Tax Credit (See PART CCC, line 9). . . . . . . . . . . . . . . . . . . .  19.
XXXXXXXXXXX
XXXXXXXXXXX
20. 	 RESERVED.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  20.
21.	 Film Production Activity Tax Credit (See PART CCC, line 5.) . . . . . . . . . . . . . . . . . . . . . . . . .  21.
XXXXXXXXXXX
.00
22.	 Endow Maryland Tax Credit from PART V, line 3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22.
23.	 Theatrical Production Tax Credit (See Part CCC, line 8.) . . . . . . . . . . . . . . . . . . . . . . . . . . .  23.
XXXXXXXXXXX
.00
24.	 Total Preservation and Conservation Easements Tax Credit from PART X, line 4. . . . . . . . . . .  24.
.00
25.	 Total Apprentice Employee Tax Credit from PART Y, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . .  25.
.00
26.	 Total Qualified Farms Tax Credit from PART Z, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  26.
XXXXXXXXXXX
27.	RESERVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27.
28.	 Total Endowments of Maryland Historically Black Colleges and Universities Tax Credit
.00
From Part BB, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.
.00
29.	 Total of current year credits (Add lines 1 through 28.). . . . . . . . . . . . . . . . . . . . . . . . . . . . .  29.
.00
30.	 Carryover of excess credits from PART BBB, line 7, of tax year 2021 Form 500CR . . . . . . . . .  30.
.00
31.	 Tentative credit. (Add lines 29 and 30.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  31.
.00
32.	 Enter amount of any credit recapture. (See instructions for PART D and PART F.). . . . . . . . . .  32.
33.	 Tentative credit after recapture. (Subtract line 32 from line 31.)
.00
If less than 0, enter negative amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33.
34.	 Enter tax from:
line 14 of Form 500;
line 21 less any amounts from lines 22-24 of Form 502; or
.00
line 32c less any amounts from lines 33 and 34 of Form 505. If less than 0, enter 0. . . . . . .
34.
35.	 Allowable credit (Enter line 33 or line 34, whichever is less.)
Also enter this amount on line:
.00
15c of Form 500, 25 of Form 502, or 35 of Form 505. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35.
NOTE: An addition to income is required for credits from Parts A, C, K-I, K-II, V and Part BB. From PART V add line 1. From
PART AAA add lines 1, 3, 11 and 28. Also add PART CCC, line 6. Enter the result on line 7f of Form 500, line 5 of Form 502, or
line 19 of Form 505.
PART BBB - EXCESS CREDIT CARRYOVER CALCULATION
If line 33 is less than or equal to line 34 of PART AAA, do not complete this section.
.00
  1.	 Enter amount from line 34 of PART AAA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
  4.	
  5.	
  6.	
 7.	
  8.	

  2.	
  3.	
  4.	
  5.	

Add lines 8, 13, 15, 16, 17, and 18 of PART AAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Subtract line 2 from line 1. (If less than 0, enter 0.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Subtract line 2 from line 33 of PART AAA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Tentative excess credit carryover (Subtract line 3 from line 4.). . . . . . . . . . . . . . . . . . . . . . . 

COM/RAD-007

2.
3.
4.
5.

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.00
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MARYLAND
FORM

500CR
Name as shown on Form

2022

BUSINESS INCOME
TAX CREDITS

Page 8

ATTACH TO FORM 500, 502, 505,
510, OR 511.

FEIN

.00
  6.	 Enter any amount included in line 5 that will expire by the end of this tax year.. . . . . . . . . . .  6.
.00
  7.	 Subtract line 6 from line 5. (If less than 0, enter 0.) This is your credit carryover. . . . . . . . . . 
7.
PART CCC - REFUNDABLE BUSINESS INCOME TAX CREDITS
  1.	 Total refundable One Maryland Economic Development Tax Credit
.00
from PART P-IV; if more than one project, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
.00
  2.	 Total Biotechnology Investment Incentive Tax Credit from PART L, line 6. . . . . . . . . . . . . . . . . 2.
.00
  3.	 Total Clean Energy Incentive Tax Credit from PART N, line 3. . . . . . . . . . . . . . . . . . . . . . . . . . 3.
.00
  4.	 Total Small Business Relief Tax Credit from PART B, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . .  4.
.00
  5.	 Total Film Production Activity Tax Credit from PART U, line 1. . . . . . . . . . . . . . . . . . . . . . . . .  5.
.00
  6.	 Total refundable Small Business Research and Development Tax Credit from PART K-II, line 6 .  6.
.00
  7.	 Total refundable Credit for Investors in Cybersecurity from PART H-I, line 6 . . . . . . . . . . . . . .  7.
.00
  8.	 Total Theatrical Production Tax Credit from Part W, line 1.. . . . . . . . . . . . . . . . . . . . . . . . . . .  8.
.00
  9.	 Total More Jobs for Marylanders Tax Credit from PART S, line 1.. . . . . . . . . . . . . . . . . . . . . . . . 9.
.00
10.	 Total Catalytic Revitalization Projects and Historic Revitalization Tax Credit from PART G, line 1..10.
11.	 Subtotal refundable business income tax credits (Add lines 1 through 10.)
(If less than 0, enter as a negative amount)
If you are filing Form 502 or Form 505, enter this amount here and on PART CC, line 3
.00
11.
of Form 502CR. If you are filing Form 500, Form 510 or 511, continue to line 12 . . . . . . . . .
12.	 Amount of pass-through entity tax attributable to your distributive or pro rata share paid by
.00
an electing PTE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12.
13.	 Total refundable business income tax credits (Add lines 11 and 12. If less than 0, enter as
.00
a negative amount). If you are filing Form 500, Form 510 or 511, continue to PART DDD . . . . . 13.
PART DDD - CORPORATION AND PASS-THROUGH ENTITY (PTE) REFUNDABLE TAX CREDIT
.00
  1.	 Enter the amount from Form 502S, line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
.00
  2.	 Total refundable business income tax credits from PART CCC, line 13. . . . . . . . . . . . . . . . . . .  2.
  3.	 Total refundable business income tax credits. Add line 1 and line 2 and enter the amount
.00
here and on Form 500, line 15d. (If less than 0, enter as a negative amount.). . . . . . . . . . . . .  3.
NOTE: If you are filing Form 510 or 511, enter the distributive or pro rata share of each tax credit on your members
Maryland Schedule K-1 (510/511).

COM/RAD-007

MARYLAND
FORM

500CR

2022

BUSINESS INCOME TAX
CREDITS INSTRUCTIONS

Electronic Format The paper version of Maryland Form 500CR
is no longer available. You must file your Maryland return
electronically to claim the business income tax credits available
from Form 500CR.
Tax-exempt organizations Organizations that are tax-exempt
under Internal Revenue Code Section 501(c)(3) may be eligible
to claim certain business tax credits against their withholding
taxes. These qualified organizations no longer will use Form
500CR, but will use Form MW508CR as an attachment to Form
MW508 (Annual Employer Withholding Reconciliation Return). See
Administrative Release 34.
GENERAL INSTRUCTIONS
Purpose Maryland Form 500CR is used to claim the following
business tax credits against corporation and individual income tax.
NON- REFUNDABLE TAX CREDITS
Enterprise Zone Tax Credit**

Part
A

Maryland Disability Employment Tax Credit**

C

Job Creation Tax Credit**

D

Community Investment Tax Credit**

E

Businesses That Create New Jobs Tax Credit
Cybersecurity Incentive Tax Credit for Buyers of
Cybersecurity Technology or Cybersecurity Services**

F
H-II

Employer-Provided Long-Term Care Insurance Tax Credit

I

RESERVED

J

Research and Development Tax Credits for Businesses
Not Certified as a “Small Business”**

K-I

Commuter Tax Credit

M

Work Opportunity Tax Credit

O

Non-Refundable One Maryland Economic Development
Tax Credit** AFTER JUNE 30, 2018.

P-1

Oyster Shell Recycling Tax Credit**

Q

Energy Storage Systems Tax Credit**

R

RESERVED

T

Endow Maryland Tax Credit**

V

Preservation and Conservation Easements Tax Credit**

X

Apprentice Employee Tax Credit**

Y

Qualified Farms Tax Credit**

Z

RESERVED

AA

Endowments of Maryland Historically Black Colleges
and Universities Tax Credit**

BB

REFUNDABLE TAX CREDITS

Part

Small Business Relief Tax Credit**

B

Catalytic Revitalization Projects and Historic
Revitalization Tax Credit**

G

Cybersecurity Incentive Tax Credit for Investors in
Cybersecurity**

H-I

Research and Development Tax Credits for Businesses
Certified as a “Small Business”**

K-II

Biotechnology Investment Incentive Tax Credit**

L

Clean Energy Incentive Tax Credit**

N

Refundable One Maryland Economic Development Tax
Credit** BEFORE JULY 1, 2018.
12/22

P-2

More Jobs for Marylanders Tax Credit **

S

Film Production Activity Tax Credit**

U

Theatrical Production Tax Credit**
Heritage Structure Rehabilitation Tax Credit from Form
502S

W
DDD

**Required Certification must be included with Form 500CR.
Pass-Through Entities (PTEs) If the business is a PTE, an
electronic Form 510 must be filed and the Form 500CR section
must be completed through line 29, Part AAA, for the PTE to
pass on these business tax credits to its members. The PTE must
provide a Schedule K-1 (510/511) to each partner, shareholder,
or member, or beneficiary with a statement showing their share
of each credit in Parts AAA, CCC and DDD. In addition, if the PTE
is passing on the Heritage Structure Rehabilitation Tax Credit, it
must complete the Form 502S section and enter the amount on
line 1 of Part DDD. Required certification must be included.
If you are a PTE claiming the One Maryland Economic Development
Tax Credit, refer to the instructions in Part P before completing
the Maryland Schedule K-1 (510/511) for your members. There
are additional reporting requirements unique to the One Maryland
Credit.
PTE member Any credit from a PTE filing a fiscal year return is
considered to be received by the member(s) on the last day of
the PTE’s fiscal year. The PTE member should claim the credit on
the member’s tax return for the same year as the PTE’s fiscal year
end. Even though the K-1 listing the credit may reflect the 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.
Special Note for PTE Members: If you are a PTE member
receiving a distributive or pro rata share of credits, the required
certification will have a different Taxpayer Identification Number
than you have listed on your return for yourself, or for the business.
Be sure to check the box as you begin to enter Form 500CR
information into your return. It is important that you provide the
PTE’s Federal Employer Identification Number (FEIN) to ensure your
credit is not disallowed. Check the box on page 1 of Form 500CR
to indicate that credits are from a PTE and enter the PTE’s FEIN.
Include Schedule K-1 (510/511)from the PTEs showing your share
of the credit and any credits passing through to you.
Note: Some state agencies will only provide certification to the
parent of a corporation, which in turn passes the information down
to its subsidiaries. It is important to identify FEINs and business
names in this situation to avoid processing delays.
If credits are received from more than one entity, include a list of
the other entities with names, FEINs, type of credit and the amount
of credit for each entity providing credit information.
Exception: Credits received from PTEs If you have received
distributive or pro rata share of tax credits reported on a Schedule
K-1 (510), you do not need to complete the calculations for the
credit. The amount which you enter in each section should be
carried over to the appropriate fields in the Summary, Parts AAA,
BBB or CCC. In addition, PTE members that are corporations or
PTEs should complete Part DDD.
Credits claimed by both spouses on a joint return Only one
Form 500CR is completed, which will combine the amounts for
both spouses.
Other Information If a FEIN is to be used and has not been
secured, enter “APPLIED FOR” followed by the date of application.
If you have not applied for a FEIN, do so immediately.
Amended Returns You will need to file an electronic Maryland
amended return to make changes affecting Form 500CR.
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BUSINESS INCOME TAX
CREDITS INSTRUCTIONS

Derived From Other Entity Check Box:

1.

Check box if any of the claimed 500CR credits are derived from an
entity other than the filing entity. Enter the other entity’s Federal
Employer Identification Number (FEIN). If claiming credits from
more than one FEIN, include Maryland Schedule K-1 (510/511)
from PTEs or statement(s) from corporate entity showing filing
entity’s share of the credit. Consolidated or combined statements
will be accepted.

Is an employee hired to fill a newly created position or, if
the employee is an economically disadvantaged individual,
is hired to fill a position previously held by another
economically disadvantaged individual;

2.

Was employed at least 35 hours per week by the business
for at least 6 months before or during the business entity’s
tax year for which a credit is claimed;

3.

Spent at least one-half of their working hours either in the
Enterprise Zone or on activities of the business resulting
directly from its location in the Enterprise Zone;

Corporate Diversity Check Box:

4.

Earns 120% or more of the State minimum wage; and

Entities claiming $1,000,000 or more in credits on Form 500CR
are required to respond to this item. ENTITIES CLAIMING LESS
THAN $1,000,000 IN CREDITS SHOULD LEAVE THIS BOX BLANK.

5.

Was hired by the business after the later of (1) the date on
which the Enterprise Zone was designated, or (2) the date
on which the business entity located in the Enterprise Zone.

For One Maryland Economic Development Tax Credit, see
instructions for Part P-1 and P-2.

The following entities are exempt from the corporate diversity
requirements and should leave this box blank: (1) sole proprietor;
(2) limited liability company owned by a single member;
(3) privately held company if at least 75% of the company’s
shareholders are family members; or (4) entity that: (a) has an
annual operating budget or annual sales less than $5,000,000;
and (b) does not qualify for $1,000,000 or more in tax credits.
All other entities claiming $1,000,000 or more in credits should
check the box if the entity meets at least 4 of the 12 corporate
diversity indicators listed at Code of Maryland Regulations
24.01.07.02D(2) (available at dsd.maryland.gov). Do not
check the box if the entity meets fewer than 4 corporate diversity
indicators. An entity identified in § 19-106 of the Business
Regulation Article, Code of Maryland, that fails to demonstrate
support for underrepresented communities in the entity’s mission
may not qualify for a state benefit, including tax credits of at least
$1,000,000.
PART A - ENTERPRISE ZONE TAX CREDIT
General Requirements
Businesses located in an Enterprise Zone may be eligible for tax
credits based upon wages paid to qualifying employees. For the
purpose of claiming the credit, Enterprise Zones include
Regional Institution Strategic Enterprise (RISE) zones as
defined in Section 5-1401(f) of the Economic Development
Article. For businesses located in a Focus Area (an area within an
Enterprise Zone that is designated by the Secretary of Commerce
as especially in need), the credit amounts are higher.
Businesses that own, operate, develop, construct or rehabilitate
property intended for use primarily as single or multifamily
residential property are not eligible for the Enterprise Zone tax
credit.
A Focus Area Employee is an employee who:
1.

Is a new employee or an employee rehired after being laid
off for more than one year;

2.

Was employed at least 35 hours per week by the business
for at least 12 months before or during the business entity’s
tax year for which a credit is claimed;

3.

Spent at least one-half of their working hours in the Focus
Area or on activities of the business resulting directly from
its location in the Focus Area;

4.

Earns 120% or more of the State minimum wage; and

5.

Was hired by the business after the later of (1) the date on
which the Focus Area was designated, or (2) the date on
which the business entity located in the Focus Area.

A Qualified Employee is an employee who is not a Focus Area
Employee and who:
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In addition, an employee may not have been hired to replace an
individual employed by the business in that year or the 3 previous
tax years except an economically disadvantaged employee hired
to replace a previously qualified economically disadvantaged
employee, for whom the business received the corresponding
first- or second-year credit in the immediately preceding tax year.
For information on the location of enterprise zones and focus areas
and the standards which businesses must meet to qualify, contact:
Maryland Department of Commerce
Office of Finance Programs, Tax Incentives Group
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438 or 410-767-4041
Economically disadvantaged employees are those who are certified
as such by:
Maryland Department of Labor, Licensing and Regulation
Division of Workforce Development and Adult Learning
1100 N. Eutaw Street
Baltimore, MD 21201
410-767-2047
That office will provide information relating to certification
requirements for such employees.
Specific Requirements
Complete Parts A-I and A-II to claim the credit for Qualified
Employees.
Complete Parts A-III and A-IV to claim the credit for Focus Area
Employees.
PART A-I – Credit for economically disadvantaged
employees not located in a Focus Area. A credit is allowed for
each new economically disadvantaged employee for a 3-year period
beginning with the year the employee was qualified. The credits are
limited to the following amounts of wages paid to the economically
disadvantaged employee: $3,000 in the first year, $2,000 in the
second year, and $1,000 in the third year. If the employee replaced
a previously qualified economically disadvantaged employee, the
credit for the new employee will be the same as would have been
allowed for the replaced employee.
On line 1, Part A-I, enter the number of economically disadvantaged
Qualified Employees not located in a focus area in their first year
of employment on the “First Year” line. Also, enter the number
of these qualified employees on their respective second and third
year lines.
On line 2, Part A-I, enter the credit equal to the wages paid to each
first year employee up to a maximum of $3,000 per employee.
On line 3, Part A-I, enter the credit equal to the wages paid to each
second year employee up to a maximum of $2,000 per employee.
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On line 4, Part A-I, enter the credit equal to the wages paid to each
third year employee up to a maximum of $1,000 per employee.
On line 5, Part A-I, enter the sum of lines 2 through 4.
PART A-II - Credit for other Qualified Employees not located
in a Focus Area. A credit is allowed for each new qualified
employee not located in a focus area not provided in Part A-I. The
credit is limited to $1,000 of wages paid and is applicable for only
the first year the employee was qualified.
On line 6, Part A-II, enter the number of first-year qualified
employees who are not located in a Focus Area who were not
claimed in Part A-I.
On line 7, Part A-II, enter the amount of wages for these employees
up to a maximum of $1,000 per employee.
PART A-III - Credit for economically disadvantaged Focus
Area Employees. A credit is allowed for each new economically
disadvantaged employee for a three-year period beginning with
the first year the employee was qualified.
The credits are limited to the following amounts of wages paid
to the same economically disadvantaged employee: $4,500 in
the first year, $3,000 in the second year and $1,500 in the third
year. If the employee replaced a previously qualified economically
disadvantaged employee, the credit for the new employee will be
the same as would have been allowed for the replaced employee.
On line 8, Part A-III, enter the number of economically
disadvantaged Focus Area Employees located in a focus area in
their first year of employment on the “First Year” line. Also, enter
the number of these qualified employees on their respective second
and third year lines.
On line 9, Part A-III, enter the credit equal to the wages paid to
each first year employee up to a maximum of $4,500 per employee.
On line 10, Part A-III, enter the credit equal to the wages paid
to each second year employee up to a maximum of $3,000 per
employee.

Counties and municipalities are responsible for certifying a business
as eligible for the tax credits. Contact the county or municipal
enterprise zone administrator for more information. The Maryland
Department of Commerce has a list of jurisdictions with enterprise
zones on its Website. Visit: www.choosemaryland.org to see
the list of Maryland Enterprise Zones by Region.
PART B – SMALL BUSINESS RELIEF TAX CREDIT
An individual or a small business that pays earned sick and safe
leave to a qualified employee may be entitled to claim the credit
towards the State income tax for the amount granted by the
Maryland Department of Commerce. If the credit exceeds the
State income tax for that taxable year, the employer may claim a
refund. Qualifying employers must have 14 or fewer employees
and must pay earned sick and safe leave at the same wage rate
that the qualified employee normally earns. In addition, employees
must earn wages that are equal to or less than 250% of the annual
federal poverty guidelines for a single-person household.
For each taxable year, the credit allowed may not exceed the lesser
of 1) an amount that equals $500 for each qualified employee; or
2) an amount that equals the total amount of qualified employer
benefits accrued by all qualified employees.
This credit is claimed on line 1, Part B, and also is entered on line
4, Part CCC Refundable Business Income Tax Credit Summary.
For additional information, contact:
Maryland Department of Commerce
Abigail McKnight, Tax Specialist
Office of Finance Programs
401 E. Pratt Street 17th Floor
Baltimore, MD 21201
410-767-7234
PART C - MARYLAND DISABILITY EMPLOYMENT TAX CREDIT

On line 12, Part A-III, enter the sum of lines 9 through 11.

General Requirements Businesses that employ persons with
disabilities, as determined by the Division of Rehabilitation Services
(DORS) in the Maryland State Department of Education and/or by
the Maryland Department of Labor, may be eligible for tax credits
for wages paid to, and for child care expenses and transportation
expenses paid on behalf of, qualified employees.

PART A-IV - Credit for other Focus Area Employees located in
a focus area. A credit is allowed for each new qualified employee
located in a Focus Area not provided in Part A-III. The credit is
limited to $1,500 of wages paid and is applicable for only the first
year the employee was qualified.

Qualifying employees with a disability are those who are certified
as such by the DORS (or by the Maryland Department of Labor for
a disabled veteran). A copy of the DORS or Maryland Department
of Labor certification must be included with your tax return when
claiming this tax credit.

On line 13, Part A-IV, enter the number of first-year Focus Area
Employees located who were not claimed in Part A-III.

For certification or for additional information, contact:

On line 11, Part A-III, enter the credit equal to the wages paid
to each third year employee up to a maximum of $1,500 per
employee.

On line 14, Part A-IV, enter the amount of wages for these
employees up to a maximum of $1,500 per employee.
PART A - Summary
Check the box if you are claiming a credit for a business located
in a RISE zone as defined in Section 5-1401(f) of the Economic
Development Article.
Add lines 5, 7, 12 and 14 and enter total on line 15, Part A.
This credit is not refundable and is applied only against the
Maryland State income tax. To the extent the credit is earned
in any year and it exceeds the State income tax, the business is
entitled to an excess carryover of the credit until it is used, or the
expiration of five years, whichever comes first.
Business must include certification with the return which shows
the business is located in a Maryland Enterprise Zone. Maryland
has more than 30 Enterprise Zones.
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Maryland State Department of Education
Division of Rehabilitation Services
Darlene Peregoy
2301 Argonne Drive
Baltimore, MD 21218
1-888-554-0334 or 410-554-9408
dors.maryland.gov
or,
Maryland Department of Labor
1100 N. Eutaw St., Room 201
Baltimore, MD 21201
410-767-2047
A “Qualified Employee” with a disability means an individual who:
1.	 Meets the definition of an individual with a disability as
defined by the Americans with Disabilities Act;
2.	 Has a disability that presently constitutes an impediment
to obtaining or maintaining employment or to transitioning
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from school to work; and,
3.	 Is ready for employment; or,
4.	 Is a veteran who has been discharged or released from
active duty by the American Armed Forces for a serviceconnected disability.
An employee must not have been hired to replace a laid-off
employee or to replace an employee who is on strike or for whom
the business simultaneously receives federal or state employment
training benefits.
Qualifying child care expenses are those expenses incurred by
a business to enable a qualified employee with a disability to be
gainfully employed.
Transportation expenses are those expenses incurred by a business
entity to enable a qualified employee with a disability to travel to
and from work.

On line 8, Part C-II, enter the sum of lines 6 and 7.
PART C - Summary
On line 9, Part C, enter the sum of lines 4 and 8.
Also the amount on line 9, Part C, becomes an addition modification.
Whenever this credit is claimed against the income tax, an addition
modification must be made in the amount of the credit claimed.
This credit is not refundable and is applied only against the
Maryland State income tax. To the extent the credit is earned
in any year and it exceeds the State income tax, the business is
entitled to an excess carryover of the credit until it is used, or the
expiration of five years, whichever comes first.
PART D - JOB CREATION TAX CREDIT

Specific Requirements

General Requirements Certain businesses that create new
qualified positions in Maryland may be eligible for tax credits based
on the number of qualified positions created.

PART C-I - Credit for employees with a disability hired. A
credit is allowed for each new employee with a disability for a twoyear period beginning with the year the employee was qualified.
The credit for each disabled employee hired is equal to 30% of the
first $15,000 of qualified first year wages and 30% of the first $
15,000 of qualified second year wages.

The business facility must be certified as having created at least
60 qualified positions, 25 qualified positions if the business facility
established or expanded is in a State Priority Funding Area, or 10
qualified positions in a county with an annual average employment
that is less than 75,000 or a median household income that is
less than two-thirds of the statewide median household income.

The employer is not entitled to claim the credit until employment
has continued for at least one full year unless the employee:

A qualified position is a full-time position which pays at least 120%
of the State minimum wage, is located in Maryland, is newly created
as a result of the establishment or expansion of a business facility
in a single location in the state and is filled.

(a)	 Voluntarily leaves the employer;
(b)	 Becomes further disabled or death occurs; or,
(c)	 Is terminated for cause. The credit must be prorated for
the portion of the year the employee worked unless the
employee voluntarily left to take another job.
On line 1, Part C-I, enter the number of qualified employees in
their first year of employment on the “First Year” line. Enter the
number of qualified employees in their second year of employment
on the “Second Year” line.
On line 2, Part C-I, enter the credit equal to 30% of the first
$15,000 of wages paid to each first year qualified employee.
On line 3, Part C-I, enter the credit equal to 30% of the first
$15,000 of wages paid to each second year qualified employee.
On line 4, Part C-I, enter the sum of lines 2 and 3.
PART C-II - Credit for Child Care and Transportation
Expenses
An additional credit is allowed for expenses incurred by the
employer for approved day care services for a child or children
of a qualified employee, or for transportation expenses that are
incurred to enable a qualified employee to travel to and from work.
A credit of up to $1,500 is allowed for the first year of employment
and up to $1,500 for the second year. To verify if a child care
center qualifies as an approved provider, contact the Department
of Human Resources, Child Care Administrator for the county or
city in which the child care center is located.
On line 5, Part C-II, enter the number of qualified employees in
their first year of employment on the “First Year” line. Enter the
number of qualified employees in their second year of employment
on the “Second Year” line.
On line 6, Part C-II, enter the credit equal to a combined total of
$1,500 in child care and transportation expenses per each first
year qualified employee with a disability.
On line 7, Part C-II, enter the credit equal to a combined total of
$1,500 in child care and transportation expenses per each second
year qualified employee with a disability.
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Small businesses that hire at least 1 qualified veteran employee for
a full-time position in the State may apply for a credit. The credit
amount is $2,500 multiplied by the number of qualified veteran
employees, up to a maximum of 5 veteran employees.
Qualified business entities are those certified as such by the
Maryland Department of Commerce. A qualified employee is an
employee filling a qualified position.
This credit is not refundable and is applied only against the
Maryland State income tax. To the extent the credit is earned
in any year and it exceeds the State income tax, the business is
entitled to an excess carryover of the credit until it is used, or the
expiration of five years after the credit was earned, whichever
comes first.	
Recapture Provision If, at any time during the three tax years
after the year the credit was earned, the average number of
qualified positions falls more than 5% below the average number
of qualified positions during the year in which the credit was
earned, a portion of the credit will be recaptured for the tax year
in which this occurs.
The amount to be recaptured is the amount originally claimed
multiplied by the percentage reduction in the number of qualified
employees. The credit to be recaptured is reported on line 32, Part
AAA of Form 500CR.
Certification must be included with the Form 500CR when claiming
this credit.
For certification or for information on the standards that businesses
must meet to qualify, contact:
Maryland Department of Commerce
Office of Finance Programs, Tax Incentives Group
401 E. Pratt St., 17th Fl.
Baltimore, MD 21202
410-767-7234
Specific Requirements
Job Creation Tax Credit **Must Include Required
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BUSINESS INCOME TAX
CREDITS INSTRUCTIONS

Certification
The amount of the approved credit is entered onto line 1, Part D.
No credits may be earned for any tax year beginning on or
after January 1, 2027.
PART E - COMMUNITY INVESTMENT TAX CREDIT
Businesses or individuals who contribute to approved Community
Investment Programs may be eligible for a credit against the
Maryland State income tax. Contributions must be made to a
nonprofit organization approved by the Department of Housing
and Community Development (DHCD). The taxpayer must apply
to and receive approval by the DHCD for each contribution for
which a credit is claimed. The credit is limited to 50% of the
approved contributions (including real property) not to exceed
$250,000.
Businesses and PTE members who are eligible to claim the
Community Investment Tax Credit must claim the credit on the
Form 500CR. Individuals who are eligible to claim the Community
Investment Tax Credit and who are not PTE members may claim
this credit on the Form 502CR instead of the Form 500CR.
However, an indiv