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Maryland Free Printable 500CRW_CR_49 012423 A for 2023 Maryland Business Income Tax Credits

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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. .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 PART A - SUMMARY if claiming credit for business located in a RISE zone. Check here .00 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 .00 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 .00 2. Credit for first year (30% of first $15,000 of wages paid to each employee). . . . . . . . . . . . . . . 2. .00 3. Credit for second year (30% of first $15,000 of wages paid to each employee) . . . . . . . . . . . . 3. .00 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 .00 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 .00 transportation expenses per qualified employee with a disability) . . . . . . . . . . . . . . . . . . . . . 7. .00 8. Total (Add lines 6 and 7.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. PART C - SUMMARY .00 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 .00 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. .00 .00 .00 .00 .00 .00 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 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 XXXXXXXXXXX .00 .00 .00 .00 .00 .00 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 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 Maryland employees who worked for you at least 120 hours but fewer than 400 hours .00 by .25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Multiply qualified first-year wages used to calculate the federal work opportunity credit paid to .00 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 .00 by .5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Work Opportunity Credit from Partnerships, S-Corps, Cooperatives, Estates, and Trusts .00 attributable to wages paid to Maryland employees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. .00 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 .00 .00 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) . .00 .00 .00 .00 .00 .00 .00 .00 .00 .00 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. .00 .00 .00 .00 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. .00 .00 .00 PART P-IV Summary 14. Total nonrefundable One Maryland Economic Development Tax Credit. .00 (Enter the amount from line 10.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. 15. Total refundable One Maryland Economic Development Tax Credit. .00 (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 .00 .00 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 .00 .00 .00 .00 .00 .00 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 .00 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. .00 If less than 0, enter 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. PTE member: Multiply the highest tax rate calculated on your return by the income on line 1. .00 7a. Tax on income from the project (See instructions for PART P-I.) . . . . 7a. .00 7b. Multiply line 7a by line 4d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7b. .00 8a. Tax on non-project income (Subtract line 7a from line 6. If less than 0, enter 0.) . 8a. .00 8b. Multiply line 8a by line 4d. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8b. Section C .00 9. Total eligible project costs ($500,000 minimum) . . . . . . . . . . . . . . . 9. .00 10. Enter the lesser of line 9 or $5,000,000 . . . . . . . . . . . . . . . . . . . . . . . 10. .00 11. Total eligible start-up costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. .00 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. .00 .00 .00 .00 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. 1 MARYLAND FORM 500CR 2022 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: 12/22 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. 2 MARYLAND FORM 500CR 2022 BUSINESS INCOME TAX CREDITS INSTRUCTIONS 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. 12/22 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 3 MARYLAND FORM 500CR 2022 BUSINESS INCOME TAX CREDITS INSTRUCTIONS 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. 12/22 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 4 MARYLAND FORM 500CR 2022 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
Extracted from PDF file 2022-maryland-500cr-instructions.pdf, last modified December 2022

More about the Maryland 500CR-Instructions Corporate Income Tax Tax Credit TY 2022

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.

We last updated the Business Income Tax Credits in January 2023, so this is the latest version of 500CR-Instructions, fully updated for tax year 2022. You can download or print current or past-year PDFs of 500CR-Instructions directly from TaxFormFinder. You can print other Maryland tax forms here.

Other Maryland Corporate Income Tax Forms:

TaxFormFinder has an additional 41 Maryland income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 510 Pass-Through Entity Tax Return
Form 500E Application for an Extension to File Corporation Income Tax Return
Form 510E Application for Extension to File Pass-Through Entity
500CR-Instructions Business Income Tax Credits
Form 500 Maryland Corporation Income Tax Return

Download all MD tax forms View all 42 Maryland Income Tax Forms


Form Sources:

Maryland usually releases forms for the current tax year between January and April. We last updated Maryland 500CR-Instructions from the Comptroller of Maryland in January 2023.

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500CR-Instructions is a Maryland Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Maryland 500CR-Instructions

We have a total of ten past-year versions of 500CR-Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2022 500CR-Instructions

500CRW_CR_49 012423 A

2021 500CR-Instructions

TY - 2021 - 500CR_500CR

2019 500CR-Instructions

Tax Year 2019 - Waiver Request For Electronic Filing Of Form 500CRW

Business Income Tax Credits 2013 500CR-Instructions

500CR-Instructions


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