Maryland Maryland Sustainable Communities Tax Credit
Extracted from PDF file 2020-maryland-form-502s.pdf, last modified September 2010
Maryland Sustainable Communities Tax CreditMARYLAND FORM 502S 2020 HERITAGE STRUCTURE REHABILITATION TAX CREDIT Print using blue or black ink only. Name of taxpayer(s) Taxpayer Identification Number Check here if this credit is derived from an entity other than that shown above. Enter the entity’s Federal Employer Identification Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • YOUR MARYLAND RESTORATION AND QUALIFIED COSTS MUST BE CERTIFIED BY THE MARYLAND HISTORICAL TRUST (MHT). Attach a copy of your approved Certification Application (Part 3) and Form 502S to your tax return. • REMINDER: Do not send photographs to the Revenue Administration Division. All photographs are to be sent to the MHT at: 100 Community Place, 3rd Floor, Crownsville, Maryland 21032-2023. For more information or to obtain applications, contact the MHT at 410-697-9535 or mht.maryland.gov Check here if a credit is being claimed for more than one property. See Special Instructions for Multiple Properties. 1. Enter MHT Project Number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Location of Property Street Address City or Town State ZIP Code+4 2. Certified rehabilitation expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. Credit for certified rehabilitation expenditures (Multiply line 2 by 20% (.20) and enter on line 3.).. . . . 3. 4. Additional credit for certified rehabilitation of a high performance building. (If applicable, multiply line 2 by 5% (.05) and enter on line 4. Otherwise, enter 0.). . . . . . . . . . . . . . . . . . . . . . . . . 4. 5. Total credit amount (Add lines 3 and 4. For commercial rehabilitations, enter the lesser of the total or $3,000,000. For all other rehabilitations, enter the lesser of the total or $50,000.). . . . . . . . . . . . . 5. 6. Total credit amount less recaptures (Enter line 5 less any recaptures if applicable. If less than 0, enter negative amount. See Instructions.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If you are filing Form 502 or Form 505, enter the amount from line 6 on line 2, Part CC of Form 502CR. If you are filing Form 504, enter the amount from line 6 on line 30 of Form 504. Corporations and PTEs will claim this credit on line 1, Part DDD of Form 500CR. If negative, enter the negative amount on the appropriate form. COM/RAD 031 6. MARYLAND FORM 502S 2020 HERITAGE STRUCTURE REHABILITATION TAX CREDIT INSTRUCTIONS General Instructions Form 502S is used to calculate allowable tax credits for the rehabilitation of certified historic structures located in Maryland and completed in the tax year which begins January 1, 2020 through December 31, 2020. Line 6 – Enter line 5 less the amount of any recaptures (See below). If negative, enter the negative amount. Also, enter this amount on the appropriate line of the income tax form being filed: line 2, Part CC of Form 502CR (Forms 502 or 505); line 30 of Form 504; or line 1, Part DDD of Form 500CR (Corporation and PTE returns). If there is more than one property for which a credit is being claimed, see Special Instructions for Multiple Properties. Certified Expenditures Special Instructions for Multiple Properties To claim the credit, the certified rehabilitation must be certified by the Maryland Historical Trust (MHT) as a substantial rehabilitation. “Substantial rehabilitation” means expenditures exceeding $5,000 for single-family, owner-occupied residential property, including a small commercial project. For all other property, “substantial rehabilitation” means the greater of the adjusted basis of the structure or $25,000. The same expenditures may not be used to qualify for a credit in any other tax year. If you are claiming a credit for multiple properties, complete lines 1-5 on a separate Form 502S for each property that is being claimed. Also, attach the required certification for each property that is being claimed. Total the amounts for line 5 of all the properties. On line 6, enter this total amount less the total recapture amounts for all properties. If negative, enter the negative amount. Corporations and pass-through entities must file electronically to claim or pass on a Heritage Structure Rehabilitation Tax Credit. See Form 500CR Instructions, Part DDD. Purpose of Form Allowable Credit A credit for a percentage of the amount spent to rehabilitate a certified historic structure is provided on the form. Credit for rehabilitation may be refunded if the credit exceeds the State tax liability. A credit may not exceed $3,000,000 for commercial rehabilitations or $50,000 for all other rehabilitations including small commercial projects. Subject to MHT approval for postponement, commercial rehabilitation must be completed within 30 months from the date of issuance of the initial certificate. An additional credit may be claimed for a commercial rehabilitation of a certified historic structure that is a high performance building. Small commercial projects do not qualify for this credit. “Small commercial project” means a rehabilitation of a structure primarily used for commercial, income producing purposes, if the qualified rehabilitation expenditures do not exceed $500,000. Small commercial project does not include a structure that is used solely for residential purposes. Specific Instructions Note: If credit is being claimed for multiple properties, see Special Instructions for Multiple Properties. Line 1 – Enter the MHT project number and location of the property as shown on the Certification Application (Part 3). Line 2 – Enter on line 2 the amount of certified expenditures for the property from the Certification Application (Part 3). Line 3 – Multiply the expenditure on line 2 by 20% and enter the result. Line 4 – If the expenditures are for the commercial rehabilitation of a certified structure that is a high performance building, multiply the expenditure on line 2 by 5% and enter the result. Otherwise, enter 0. (See Allowable Credit). Line 5 – Add lines 3 and 4. Enter the lesser of that total or the applicable maximum credit. The applicable maximum credit for a single-family, owner-occupied residence or small commercial project is $50,000. The applicable maximum credit for a commercial rehabilitation is $3,000,000. COM/RAD 031 Recaptures For Commercial Rehabilitations. If within the first 5 years (starting with the first year the credit was claimed), work was performed that would disqualify a certification or the certified rehabilitation is disposed of, a portion of the credit is subject to recapture. A recapture must be made on the tax return for the tax year in which the disqualifying work or the disposal of a certified rehabilitation is done. For Other Rehabilitations. If within the first 5 years (starting with the first year the credit was claimed), work was performed that would disqualify a certified rehabilitation for which a credit was claimed, a portion of the credit must be recaptured. Calculation of the Recapture. The recapture is calculated as follows: • In the first year, 100% of the credit must be recaptured. • In the second year, 80% of the credit must be recaptured. • In the third year, 60% of the credit must be recaptured. • In the fourth year, 40% of the credit must be recaptured. • In the fifth year, 20% of the credit must be recaptured. No recapture is required for disqualifying work performed after the first 5 years or disposal after the first 5 years. Line 5 must be reduced by the amount of the recapture and entered on line 6. Attachment of Forms Attach your completed Form 502S along with a copy of the approved Certification Application (Part 3) to Form 502CR, Form 504, or Form 500CR. Failure to do so will result in the credit being disallowed. Note: Nonprofit organizations that have been certified as having a qualified rehabilitation, may claim this credit on Form 502S. Trusts should attach Form 502S to Form 504. 501(c)(3) corporations should complete the Form 502S section on their electronically-filed corporation income tax return. For questions concerning certification, contact: Maryland Historical Trust 100 Community Place, 3rd Floor Crownsville, MD 21032-2023 410-697-9535 mht.maryland.gov For questions concerning the credit calculation, visit our website at www.marylandtaxes.gov or email your question to [email protected] You may also call 1-800638-2937 or from Central Maryland 410-260-7980.
More about the Maryland Form 502S Individual Income Tax Tax Credit TY 2020
Form 502S is used to calculate allowable tax credits for the rehabilitation of certified historic structures located in Maryland.
We last updated the Maryland Sustainable Communities Tax Credit in March 2021, so this is the latest version of Form 502S, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form 502S directly from TaxFormFinder. You can print other Maryland tax forms here.
Related Maryland Individual Income Tax Forms:
|Form Code||Form Name|
|Form 502SU||Subtractions from Income|
Maryland usually releases forms for the current tax year between January and April. We last updated Maryland Form 502S from the Comptroller of Maryland in March 2021.
Form 502S is a Maryland Individual 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 Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Maryland Form 502S
We have a total of ten past-year versions of Form 502S in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Tax Year 2019 - Form 502S Heritage Structure Rehabilitation Tax Credit
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