COVID-19 Agency Response
Carryout, Delivery & Outdoor Seating During COVID-19
New Filing Deadlines

Tax Credits and Deductions for Individual Taxpayers

You may be eligible to claim some valuable personal income tax credits available on your Maryland tax return.

The following list contains general information about some of the most commonly used credits. You may want to consult with a tax professional to review specific requirements. Some of these credits contain carryover or recapture provisions and, in some cases, you may have to seek certification from another state agency. For more information, see Form 502CR



State Department of Assessments and Taxation Credits

Tax Credits for Homeowners and Renters

A credit is allowed for cost of new aquaculture oyster floats that are designed to grow oysters at or under an individual homeowner’s pier. The devices must be buoyant and assist in the growth of oysters for the width of the pier. The credit amount is limited to the lesser of the individual's state tax liability for that year or the maximum allowable credit of $500.

If the credit is more than the tax liability, the unused credit may not be carried forward to another tax year.

To claim the credit, you must complete Part D of Form 502CR and attach to your Maryland income tax return. You must also report the credit on Maryland Form 502, 505 or 515.

If you contribute to the Maryland Prepaid College Trust, the Maryland College Investment Plan Maryland ABLE account.

Up to $2,500 per contract purchased for advanced tuition payments made to the Maryland Prepaid College Trust. See Administrative Release 32.

Up to $2,500 per contributor per beneficiary of the total of all amounts contributed to investment accounts under the Maryland College Investment Plan. This subtraction modification may not be claimed if the account holder received a State contribution under § 18-19A-04.1 of the Education Article during the taxable year.

Any amount included in federal adjusted gross income as a result of a distribution to a designated beneficiary from a Maryland ABLE account, unless it is a refund or nonqualified distribution. Designated beneficiary means a designated beneficiary as defined in § 18–19C–01 of the Education Article.

Up to $2,500 per ABLE account contributor per beneficiary of the total of all amounts contributed under the Maryland ABLE Program. Subject to the $2,500 annual limitation, any amount disallowed as a subtraction because it exceeds $2,500 may be carried over until used to the next 10 succeeding taxable years as a subtraction.

An amount included in federal adjusted gross income contributed by the State into an investment account under § 18-19A-04.1 of the Education Article during the taxable year. This includes amounts included in federal adjusted gross income contributed by the State into an investment account under the Maryland College Investment Plan. Note: Certain account holders who made contributions to an account in calendar year 2017, but failed to make contributions in accordance with § 18–19A–04.1(e)(1) of the Education Article as enacted by Chapters 689 and 690 of the Acts of the General Assembly of 2016 and were otherwise eligible for a State contribution, received a State contribution of $250 by June 30, 2018. If you are an account holder who receives this State match, you may be eligible for a subtraction. To claim the subtraction, you must file an amended 2017 income tax return

For more information, see Administrative Release 32 - Maryland Prepaid College Trust and Maryland College Investment Plan Tax Benefits and College Savings Plans of Maryland.

If your earned income and federal adjusted gross income plus additions are below the poverty level income for the number of exemptions on your federal tax return, you may be eligible for the poverty level credit. You are not eligible for this credit if you checked filing status 6 (dependent taxpayer) on your Maryland income tax return. 

Generally, if your Maryland state tax exceeds 50% of your federal earned income credit and your earned income and federal adjusted gross income are below the poverty income guidelines from the worksheet, you may claim a credit of 5% of your earned income. This is not a refundable credit.

The tax credit can be claimed on Maryland forms 502, 505 or 515.

State Poverty Level Credit Worksheet

If you checked filing status 6 on your Maryland return, you are not eligible for this credit.

1. Enter the amount from line 7 of Form 502. If you checked filing status 3 (married filing separately) and you filed a joint federal return enter your joint federal adjusted gross income plus any  Maryland additions 1.________________
2. Enter the total of your salary, wages, tips and other employee compensation and net profit from self-employment. (Do not include a farm or business loss). 2.________________
3. Find the number of exemptions in the chart that is the same as the number of exemptions entered on your federal tax return. Enter the income level that corresponds to the exemption number. 3.________________
4. Enter the amount from line 1 or 2, whichever is larger. Compare lines 3 and 4. If line 4 is greater than or equal to line 3, STOP HERE. You do not qualify for this credit. If line 3 is greater than line 4, continue to line 5. 4.________________
5. Multiply line 2 by 5% (.05). This is your State Poverty Level Credit. Enter that amount on line 23 of Form 502. 5.________________

 

Poverty Income Guidelines
Number of Exemptions on Federal Return Income Level
1 $12,490
2 $16,910
3 $21,330
4 $25,750
5 $30,170
6 $34,590
7 $39,010
8 $43,430
If you have more than 8 exemptions, add $4,420 to the last income level for each additional exemption.

 

Local Poverty Level Credit Worksheet

If the amount on line 3 is greater than the amount on line 4, you are eligible to claim the local poverty level credit. Complete this worksheet to calculate the amount of your credit.

A. ENTER the amount from line 2 of the State Poverty Level Credit Worksheet A.________________
B. ENTER your local tax rate based on where you live. See Local Tax Rate Chart. B. 0.0___ ___ ___
C. MULTIPLY line A by line B. Enter the amount on line 30 of Form 502. C.________________

To claim the credit:

  • Complete your Maryland return up to the line on the form labeled "Maryland tax."
  • Complete the State Poverty Level Credit Worksheet included in Instruction 18 of the tax booklet and the Local Poverty Level Credit Worksheet in Instruction 19.
  • Enter the state and local credit amounts on the appropriate lines of your Maryland return.

If you are a nonresident or a part-year resident, you must prorate the credits based on the ratio of your Maryland adjusted gross income to your federal adjusted gross income. See Instruction 26(o) in the Maryland tax booklet for more information.

If the credit exceeds your tax liability, the unused credit may not be carried forward to any other tax year.

If you donated an easement to the Maryland Environmental Trust or the Maryland Agricultural Land Preservation Foundation to preserve open space, natural resources, agriculture, forest land, watersheds, significant ecosystems, view sheds or historic properties, you may be eligible for a tax credit.

You may be eligible for the credit if:

  1. the easement is perpetual;
  2. the easement is accepted and approved by the Board of Public Works; and
  3. the fair market value of the property before and after the conveyance of the easement is substantiated by a certified real estate appraiser.

The credit is equal to the difference in the fair market values of the property reduced by payments received for the easement. The credit amount is limited to the lesser of the individual's state tax liability for that year of the maximum allowable credit of $5,000, per owner, who qualifies to claim the credit. The credit can be claimed on Maryland forms 502, 504, 505 or 515.

If the property is owned jointly by more than one individual such as a husband and wife, each individual owner is entitled to the credit based on their percentage of ownership. Individual members of a pass-through entity are not eligible for this credit.

In the case of a joint return, each spouse must calculate their own state tax liability for limitation purposes. Use the rules for filing separate returns in Instruction 8 of the Maryland resident tax booklet. In the case of a fiduciary return, the fiduciary will complete the column for Taxpayer B only.

If the individual's allowable credit amount exceeds the maximum of $5,000, the excess may be carried forward up to 15 years or until fully used. Complete lines 1-7 of Part F on Form 502CR. If you itemize deductions, see Instruction 14 in the Maryland resident tax booklet.

For more information, contact:

Maryland Environmental Trust
100 Community Place, 1st Floor
Crownsville, MD 21032
410-514-7900
dnr.maryland.gov/met/

Maryland Agricultural Land Preservation Foundation
50 Harry S. Truman Parkway
Annapolis, MD 21401
410-841-5860
mda.maryland.gov/malpf/
 

If you are a Maryland resident (including a resident fiduciary) and you paid income tax to another state, you may be eligible for a credit on your Maryland return. Nonresidents (filing Form 505, 515 or 504) are not eligible for this credit.

Find the state to which you paid a nonresident tax in the groups listed below. The instructions for that group will tell you if you are eligible for credit and should complete Part A of Form 502CR.

You must file your Maryland income tax return on:

  • Form 502 and complete lines 1 through 21 of that form; or
  • Form 504 and complete lines 1 through 11.

Then complete Form 502CR Parts A and AA and attach to Form 502 or 504. A completed, signed copy of the income tax return filed in the other state must also be attached to Form 502 or 504.

Group I - Maryland Residents

A Maryland resident (including a resident fiduciary) having income from one of these states must report the income on the Maryland return Form 502 or 504. To claim a credit for taxes paid to another state, complete Form 502CR and attach it and a copy of the other state's nonresident income tax return to your Maryland return.

Alabama - AL Massachusetts - MA Pennsylvania - PA (except wage income)
Arizona - AZ Michigan - MI Rhode Island - RI
Arkansas - AR Minnesota - MN South Carolina - SC
California - CA Mississippi - MS Tennessee - TN
Colorado - CO Missouri - MO Utah - UT
Connecticut - CT Montana - MT Vermont - VT
Delaware - DE Nebraska - NE Virginia - VA (except wage income)
Georgia - GA New Hampshire - NH Washington, DC - DC (except wage income)
Hawaii - HI New Jersey - NJ West Virginia- WV (except wage income)
Idaho - ID New Mexico - NM Wisconsin - WI
Illinois - IL New York - NY Territories and Possessions of the United States
Indiana - IN North Carolina -NC American Samoa - AS
Iowa - IA North Dakota - ND Guam - GU
Kansas - KS Ohio - OH Northern Mariana Island - MP
Kentucky - KY Oklahoma - OK Puerto Rico - PR
Louisiana - LA Oregon - OR U.S. Virgin Islands - VI
Maine - ME    

Group II - Reciprocal States

Maryland has a reciprocal agreement with the following states:

  • Pennsylvania - PA
  • Virginia - VA
  • Washington, DC - DC
  • West Virginia - WV

Group III - No state income tax

No state income tax - No credit allowed.

  • Alaska - AK
  • Florida - FL
  • Nevada - NV
  • South Dakota - SD
  • Texas - TX
  • Washington - WA
  • Wyoming - WY

Dual Residents

A person may be a resident of more than one state at the same time for income tax purposes. If you must file a resident return with both Maryland and another state, use the following rules to determine where the credit should be taken: 

  1. A person who is domiciled in Maryland and who is subject to tax as a resident of any of the states listed in Group I or II can claim a credit on the Maryland return (Form 502) using Part A of Form 502CR.
  2. A person domiciled in any state listed in Group I or II who must file a resident return with Maryland must take the credit in the state of domicile.

Capital gains installment sales

You may be allowed a credit for tax paid to another state when a capital gain is recognized in the current year on the federal return, but was taxed by another state in an earlier year. The gain must have resulted from the sale of a personal residence located in another state or from an installment sale. The credit equals the amount of the gain multiplied by the highest state tax rate used on your Maryland tax return or the personal income tax rate in the other state in the year in which the state taxes the gain, whichever is less.

If the credit exceeds your tax liability, the unused credit may not be carried forward to any other tax year.

As of June 1, 2010, the Sustainable Communities Tax Credit replaces the Heritage Structure Rehabilitation Credit.

A credit may be allowed for substantial expenditures incurred in a 24-month period to rehabilitate a certified heritage structure located in Maryland. The credit is available for owner-occupied residential property, as well as income-producing property. Credits may not be authorized after June 30, 2010.

How the credit is calculated:

The credit is 20% of the total expenditures incurred during the 24 month rehabilitation period. For the rehabilitation of commercial structures, the credit cannot be more than the maximum amount specified under the initial credit certificate, which is based on estimated expenditures. If the application was submitted to MHT before June 1, 2002, the credit based on actual expenditures can be up to $250,000 more than the amount shown on the initial credit certificate.

The credit is claimed in the year in which the rehabilitation is completed; however, it cannot be claimed until the Part 3 certification is approved.

For property certified before July 1, 2001, a business could have received a mortgage credit certificate. In lieu of taking the credit, the certificate may be transferred to the mortgage holder who may then take a credit against their income tax in an amount equal to the face value of the certificate.

For certifications received after June 30, 2001, the amount in excess of the state tax liability can be refunded.

Credits for tax years 2002 and later are limited to $3 million. For non-commercial properties, the credit is $50,000 per property for applications received by MHT after June 30, 2004.

The rehabilitation of a structure that received approval by the MHT on or before February 1, 2001, is subject to the provisions of the law in effect prior to the 2002 legislative changes.

The MHT will not accept applications for the approval of plans for commercial rehabilitations if a substantial part of the work has been completed if the applicant has already submitted three or more applications for a combined total of more than $500,000 in that year.

The total amount of credits approved by MHT for properties located in certain areas of the state during each fiscal year is subject to certain limitations.

A pro-rated percentage of the credit is subject to recapture if disqualifying work is performed during a five-year period, beginning with the year in which the certified rehabilitation was completed.

Contact:

Maryland Historical Trust
100 Community Place
Crownsville, MD 21032-2023
Phone: 410-514-7628

If you received a grant under Maryland's Residential Clean Energy Grant Program to install a qualifying solar energy system and the grant was reported to you on a 1099G form and included in your federal adjusted gross income, you may be able to subtract the grant amount from your taxable income on the Maryland income tax return. The subtraction amount cannot exceed your total income.

To claim the subtraction, enter the amount that was reported to you on a 1099G form on Maryland Form 502 and enter code letters "ee" in the code letter box.

The Residential Clean Energy Grant Program is administered by the Maryland Energy Administration and provides funding for a portion of the costs to install certain qualifying solar energy systems.

Grants are allocated on a first come/ first served basis across technologies and are subject to changes in amount and existence based on funding availability.

For more information on clean energy grants, contact:

Maryland Energy Administration
1800 Washington Blvd, Suite 755
Baltimore, MD 21230
Telephone: 410-537-4000
E-mail: cegp.mea@maryland.gov

If you and your spouse have taxable income and are filing a joint federal return, you may be able to subtract up to $1,200, or the income of the spouse with the lower income (whichever is less) on your Maryland income tax return.

The benefit is available only on the Maryland return and it applies to wages, pensions or business income.

You should enter the subtraction amount on line 14 of Form 502. The following worksheet from Instruction 13, Line 14 of the Maryland tax booklet will help you calculate the subtraction.

Two-Income Married Couple Subtraction Worksheet
  (a) You (b) Your Spouse
1. ENTER the portion of federal adjusted gross income from line 1 of Form 502 attributable to each spouse.    
2. ENTER the portion of additions to income from line 6 of Form 502 attributable to each spouse.    
3. ADD lines 1 and 2    
4. ENTER the portion of subtractions from income from lines 8-13 of Form 502 attributable to each spouse    
5. SUBTRACT line 4 from line 3    
6. COMPARE the amounts on lines 5 (a) and (b) and enter the smaller amount here but not less than zero.    
7. ENTER $1,200 or the amount on line 6, whichever is less. ENTER this amount on line 14 of Form 502.    

You may be eligible to claim some valuable personal income tax credits available on your Maryland tax return.

The following list contains general information about some of the most commonly used credits. You may want to consult with a tax professional to review specific requirements. Some of these credits contain carryover or recapture provisions and, in some cases, you may have to seek certification from another state agency. For more information, see Form 502CR

State Department of Assessments and Taxation Credits

Tax Credits for Homeowners and Renters

If you purchase a long-term care insurance contract for yourself or certain members of your family, you may be eligible for a one-time credit of up to $500 for each insured.

Qualifications

To qualify for the credit, the insured must be all of the following:

  • A spouse, parent, stepparent, child or stepchild.
  • A Maryland resident.
  • Not covered by long-term care insurance before July 1, 2000.
  • Not claimed the credit for the insured by another taxpayer this year.
  • Not claimed the credit for the insured by anyone in any other tax year.

For the current tax year, you can claim a credit equal to the premiums paid, up to a maximum of $420 for each insured person 40 years of age or younger, and up to a maximum of $500 for each insured person 41 or older.

This tax credit must not have been claimed for the insured by another taxpayer in this year or anyone else in any other tax year. If the credit exceeds the tax liability, the unused credit may not be carried forward to any other tax year.

Claiming the credit

To claim the credit, you must complete Part E of Form 502CR, and attach it with your Maryland Income Tax Return (Form 502, 505 or 515). 

If you are a qualified teacher, you may be able to claim a credit against your State tax liability for tuition paid to take graduate-level courses required to maintain certification. This credit applies to individuals who:

  • Currently hold a standard professional certificate or an advanced professional certificate;
  • Are employed by a county/city board of education in Maryland, a state or local correctional facility, or a juvenile correctional facility as listed below in the note;
  • Teach in a public school or qualified facility and receive a satisfactory performance;
  • Successfully complete the graduate courses with a grade of B or better; and
  • Have not been fully reimbursed by the state/county/city for these expenses.

Note: Qualified juvenile facilities are: the Alfred D. Noyes Children's Center; the Baltimore City Juvenile Justice Center; the Charles H. Hickey, Jr. School; the Cheltenham Youth Facility; the J. DeWeese Carter Center; the Lower Eastern Shore Children's Center; the Thomas J.S. Waxter Children's Center; the Victor Cullen Center; the Western Maryland's Children's Center; and the youth centers.

Only the unreimbursed portion qualified for the credit. The courses taken must be required to maintain certification and the cost of the courses must exceed any amount reimbursed by the county or Baltimore City.

The maximum amount of credit allowed is $1,500 for each qualifying individual. The credit is limited to the amount paid, less any reimbursement, up to the maximum allowed credit. See Page 3 of the Instructions for Form 502CR to learn how to calculate the credit. Each spouse that qualifies may claim this credit. Complete a separate column on Form 502CR Part C for each spouse.

The credit can be claimed on Maryland forms 502, 505 or 515

If the credit exceeds your tax liability, the unused credit may not be carried forward to any other tax year.

If you qualify for the federal earned income tax credit and claim it on your federal return, you may be entitled to a Maryland earned income tax credit on the state return equal to 50% of the federal tax credit. However, If you do not meet the minimum age requirement under the federal credit and are otherwise eligible for the federal credit for those without a qualifying child, you may claim the state earned income tax credit (calculate federal earned income credit disregarding the minimum age requirement). The Maryland earned income tax credit (EITC) will either reduce or eliminate the amount of the state and local income tax that you owe.

For tax year 2019, the earned income tax credit is allowed if you meet the following conditions:

  • You have three or more qualifying children and you earn less than $50,162 ($55,952 if married filing jointly).
  • You have two qualifying children and you earn less than $46,703 ($52,493 if married filing jointly).
  • You have one qualifying child and you earn less than $41,094 ($46,884 if married filing jointly).
  • You do not have a qualifying child and you earn less than $15,570 ($21,370 if married filing jointly).

To calculate the amount of your tax credit, complete the State Earned Income Credit Worksheet included in Instruction 18 of the Maryland tax booklet.

If you are a Maryland resident, you may qualify for the Maryland earned income tax credit even if you're not required to file a Maryland tax return. For tax years beginning after 12/31/2014, nonresidents may no longer claim any earned income credit.

Refundable Earned Income Tax Credit

If the earned income tax credit exceeds your Maryland tax liability, you may be entitled to a refund. Complete the Refundable Earned Income Credit Worksheet (21A) in Instruction 21 of the resident tax booklet.

For tax year 2019, the refundable earned income credit is calculated as 28% of your federal earned income credit, less your state income tax liability. If this amount is zero or less, no refund is due. The refundable amount of the credit may not be carried forward to any other tax year.

Local Earned Income Tax Credit

If you are a Maryland resident who qualifies for the state earned income credit, you may also qualify for a local earned income tax credit. Complete the Local Earned Income Credit Worksheet (19B) included in Instruction 19 of the tax booklet. The unused local income tax credit may not be refunded or carried forward to any other tax year.

Nonresidents, Part-Year Residents

Part-year residents must prorate their earned income credits on Form 502, based on the ratio of Maryland adjusted gross income to federal adjusted gross income. For tax years beginning after 12/31/2014, nonresidents may no longer claim any earned income credit.

Free Tax Preparation

Free tax preparation services are available at Volunteer Income Tax Assistance (VITA) sites to help low- and moderate-income taxpayers file their federal and Maryland income tax returns free of charge. Trained volunteers will prepare your returns, make sure you claim all the tax credits to which you are entitled, and even file your returns electronically - for free.

To find a VITA site in your area, call 410-685-0525 or 1-800-492-0618. Hearing impaired individuals can call TTY 410-685-2159. When calling, please indicate if you plan to file for a prior tax year.

Additionally, if you earned less than $56,000, you may qualify for free tax preparation through the CASH Campaign of Maryland. You can call 1-800-492-0618 for more information.

Maryland Taxpayer Service Offices

In addition, if you bring a completed copy of your federal return and all related documents to any of our taxpayer service offices, we will complete your Maryland income tax return and even file it electronically for you for free. Our offices are open Monday - Friday, 8:30 a.m. - 4:30 p.m.

Helpful Resources

Maryland provides two separate tax benefits for child or dependent care costs: a subtraction that reduces your taxable income and a tax credit that reduces the amount of tax you owe.

Subtraction

The state subtraction benefit, which is claimed on Form 502, reduces your taxable income. If you have eligible child or dependent care expenses, first determine your federal tax credit by completing the calculation on federal Form 2441. Transfer the amount of child or dependent care expenses (not the federal tax credit) claimed on line 6 of the federal form to line 9 of Maryland Form 502. You can subtract actual expenses up to the legal maximums of $3,000 for one child or $6,000 for two or more children.

Tax credit

The tax credit, which is claimed on Form 502CR, reduces the amount of tax you owe. If you were eligible for a child and dependent care credit on your federal income tax return, you may be entitled to a tax credit on your Maryland income tax return.

The tax credit does not affect the treatment or eligibility of the state tax subtraction for child care costs.

For more information about the tax credit, see Child and Dependent Care Tax Credit below

If you were eligible for a Child and Dependent Care Credit on your federal income tax return, Form 1040 or 1040A for the tax year, you may be entitled to a credit on your Maryland state income tax return. The credit starts at 32.5% of the federal credit allowed, but is phased out for taxpayers with federal adjusted gross incomes above $41,000 ($20,500 for individuals who are married, but file separate income tax returns). No credit is allowed for an individual whose federal adjusted gross income exceeds $50,000 ($25,000 for married filing separately). This credit is in addition to the subtraction modification available on the Maryland return for child and dependent care expenses.(See above)

To claim the credit, you must complete Part B of Form 502CR and submit with your Maryland income tax return. You must report the credit on Maryland Form 502, 505 or 515.

You can use the tables below to determine the percentage of the federal credit that can be claimed on your Maryland return:

  • Find the correct decimal amount that applies to your FAGI in the appropriate table.
  • Multiply your FAGI by the decimal amount.
  • Complete your Maryland return through the line labeled "Maryland Tax."
  • Complete Form 502CR, following the instructions provided.
  • Submit your completed Form 502CR with your Maryland return.

If the credit is more than your tax liability, the unused credit may not be carried forward to another tax year.

CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES CHART

If your filing status is Married Filing Separately and your federal adjusted gross income is: Decimal Amount For all other filing statuses, if your federal adjusted gross income is:
At least But less than   At least But less than
$0 $20,501 .3250 $0 $41,001
$20,501 $21,001 .2925 $41,001 $42,001
$21,001 $21,501 .2600 $42,001 $43,001
$21,501 $22,001 .2275 $43,001 $44,001
$22,001 $22,501 .1950 $44,001 $45,001
$22,501 $23,001 .1625 $45,001 $46,001
$23,001 $23,501 .1300 $46,001 $47,001
$23,501 $24,001 .0975 $47,001 $48,001
$24,001 $24,501 .0650 $48,001 $49,001
$24,501 $25,001 .0325 $49,001 $50,001
$25,001 or over .0000 $50,001 or over

The Student Loan Debt Relief Tax Credit may be claimed on Form 502CR by certain qualified taxpayers in the amount certified by the Maryland Higher Education Commission. Note: A copy of the required certification from the Maryland Higher Education Commission must be included with Form 502CR. "Qualified Taxpayer" means an individual who has incurred at least $20,000 in undergraduate student loan debt and has at least $5,000 in outstanding undergraduate student loan debt when submitting an application for certification to the Maryland Higher Education Commission. The amount of any tax credit approved by the Maryland Higher Education Commission may not exceed $5,000. The refundable tax credit must be claimed against the State income tax for the taxable year in which the Maryland Higher Education Commission certifies the tax credit. Individuals applying for certification should submit an application to the Maryland Higher Education Commission by September 15th of each year. The Maryland Higher Education Commission shall prioritize tax credit recipients and amounts based on qualified taxpayers who:

    (1)
  1. Have higher debt burden to income ratios;

  2. (2)
  3. Graduated from an institution of higher education located in Maryland;

  4. (3)
  5. Did not receive a tax credit in a prior year; or

  6. (4)
  7. Were eligible for in-state tuition.

The credit shall be recaptured if the individual does not use the credit approved under this section for the repayment of the individual's undergraduate or graduate student loan debt within 2 years from the close of the taxable year for which the credit is claimed. The individual who claimed the credit shall pay the total amount of the credit claimed as taxes payable to the State for the taxable year in which the event requiring recapture of the credit occurs.

For more information contact:

Maryland Higher Education Commission
6 North Liberty Street
Baltimore, MD 21201
Phone: (410) 767-4859 or (800) 974-0203
mhec.maryland.gov

Individuals who hunt and harvest an antlerless deer in compliance with State hunting laws and regulations, and donate the processed meat to a venison donation program administered by a qualified tax exempt organization, may claim a credit against their State personal income tax for up to $50 of qualified expenses to butcher and process an antlerless deer for human consumption. The total amount of the credits may not exceed $200 in any taxable year unless the individual harvested each deer in accordance with a deer management permit.

Any unused portion of the qualified expenses may not be carried over to another taxable year.

To claim the credit, you must complete Part G of Form 502CR and attach to your Maryland income tax return. You must also report the credit on Maryland Form 502, 505 or 515.

An individual may claim a credit against their Maryland State income tax equal to 50% of the qualified expenses incurred during a taxable year to install accessibility and universal visitability features to or within a home.

"Accessibility and universal visitability features" means components of renovation to an existing home that improves access to or within the home for individuals with disabilities. "Qualified expenses" means costs incurred to install accessibility and universal visitability features to or within a home.

For any taxable year, the credit may not exceed the lesser of: (i) $5,000; or (ii) the State income tax imposed for the taxable year calculated before the application of the credits allowed under §§ 10-701, 10-701.1, and 10-741 of the Tax-General Article but after the application of any other credit allowed. The unused amount of the credit may not be carried over to any other taxable year. The credit amount is limited to the lesser of the individual's state tax liability for that year or the maximum allowable credit of $5,000.

The qualified expenses incurred must be certified by the Maryland Department of Housing and Community Development. To claim the credit, an individual shall: (i) file an amended income tax return for the taxable year in which the qualified expenses were incurred; and (ii) attach a copy of the Maryland Department of Housing and Community Development's certification of the approved credit amount to the amended income tax return.

To claim the credit, you must complete Part K of Form 502CR and attach to your Maryland income tax return. You must also report the credit on Maryland Form 502, 505 or 515.

For more information, contact:

Maryland Department of Housing and Community Development
7800 Harkins Road
Lanham, Md. 20706
301-429-7400
dhcd.maryland.gov/Pages/Contact-Us.aspx
customerservice.dhcd@maryland.gov

If you are a qualified licensed physician or a qualified nurse practitioner who served without compensation as a preceptor, you may be eligible to claim a nonrefundable credit against your State tax liability. There are two credits for qualified preceptors. The first credit on line 1 of Part J on Form 502CR is only available for licensed physicians. The second credit on line 2 of Part J on Form 502CR is available for both licensed physicians and nurse practitioners.

A licensed physician who served as a physician preceptor in a preceptorship program authorized by an accredited medical school in Maryland may claim a credit on line 1 of Part J on Form 502CR in the amount of $1,000 for each student for whom the licensed physician served as a physician preceptor without compensation. For purposes of claiming the credit on line 1 of Part J on Form 502CR, "preceptorship program" means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs an enrolled student of a liaison committee on medical education-accredited medical school in Maryland or an individual in a postgraduate medical training program in Maryland with a licensed physician who meets the qualifications as a preceptor. To qualify for the credit, the licensed physician must have worked in an area of Maryland identified as having a health care workforce shortage by the Maryland Department of Health (MDH). The licensed physician must have worked a minimum of three rotations, each consisting of 160 hours of community-based clinical training. The amount of this credit may not exceed $10,000.

A nurse practitioner or licensed physician who served as a preceptor in a preceptorship program approved by the Maryland Board of Nursing may claim a credit on line 2 of Part J on Form 502CR in the amount of $1,000 for each nurse practitioner student for whom the nurse practitioner or licensed physician served as a preceptor without compensation. For purposes of claiming the credit on line 2 of Part J on Form 502CR, "preceptorship program" means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs a nurse practitioner student enrolled in a nursing education program that is recognized by the Maryland Board of Nursing with a nurse practitioner or licensed physician who meets the qualifications as a preceptor. To qualify for the credit, a nurse practitioner or licensed physician must have worked in an area of Maryland identified as having a health care workforce shortage by the Maryland Department of Health. The nurse practitioner or licensed physician must have worked a minimum of three rotations, each consisting of at least 100 hours of community-based clinical training. The amount of this credit may not exceed $10,000.

NOTE: A copy of the required certification from the Maryland Department of Health must be included with Form 502CR.

Eligibility for these credits is limited to funds budgeted. Applicants seeking certification will be approved on a first-come, first-served basis. Go to the Maryland Department of Health website at health.maryland.gov for more information.

A taxpayer who makes a donation to a qualified permanent endowment fund at an eligible community foundation may be eligible for a credit against the Maryland State income tax. The taxpayer must apply to the Maryland Department of Housing and Community Development (DHCD) for a certification for the donation. This certification must be attached to the Form 502CR at the time the Maryland income tax return is filed.

Individuals who are eligible to claim the Endow Maryland income tax credit, and who are not PTE members may elect to claim this credit on Part I of Form 502CR, instead of claiming the credit on Form 500CR. However, an individual may not claim this credit on both Form 500CR and Form 502CR. PTE members who are eligible for this credit must claim the credit on Business Income Tax Credit Form 500CR.

Individuals who anticipate having a carryover of the Endow Maryland income tax credit are advised to use Form 500CR, instead of Form 502CR.

The credit is limited to 25% of the approved donation (in cash or publicly traded securities) not to exceed $50,000.

NOTE: A copy of the required approval from the DHCD must be included with Form 502CR.

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, you are entitled to an excess carryover of the credit until it is used, or it expires five years after the credit was earned, whichever comes first.

NOTE: The amount of donation shown on line 2 of Part I on Form 502CR requires an addition to income. See Instruction 12 in the Maryland Resident Instruction Booklet.

For more information contact:
Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite
Baltimore, MD 21202
410-209-5800

Email: endowmaryland.nr@maryland.gov

Donors that make a donation to a qualified permanent endowment fund held at an eligible institution of higher education may be eligible for a credit against the Maryland State income tax. The tax credit terminates December 31, 2023.

To qualify for the credit

Cash donations made by the taxpayer to a qualified permanent endowment fund that meet certain requirements are eligible for tax credits. Donations must be made to a qualifying fund at any of the following institutions: Bowie State University, Coppin State University, Morgan State University, or University of Maryland Eastern Shore. In each tax year, the Comptroller may award a maximum of $60,000 in tax credits to each of the four institutions.

How the credit is calculated

The credit is 25% of the value of a proposed donation to a qualified permanent endowment fund. The donor must apply to the Comptroller of Maryland for a certification of the donation.

Credit application procedure

Donors seeking the tax credit must apply to the Comptroller for a tax credit certificate in the calendar year that the donation is made.

Applications must be sent by e-mail and are approved on a first-come, first-serve basis until the maximum amount of authorized credits have been approved.

For tax year 2019, the HBCU Tax Credit Application will be accepted beginning July 1, 2019 at 8 a.m.

An acknowledgement letter is issued when an application for the proposed donation is received. Donors are required to submit documentation from the institution showing proof of donation within 30 days before a final tax credit certificate is issued.

Where to send applications

Applications are accepted by e-mail only; and should be sent to HBCUtaxinfo@marylandtaxes.gov

All fields on the application are required to be completed fully. Incomplete applications will not be processed.

How the credit is claimed

Donors claim the credit by including the certification at the time the Maryland income tax return is filed. Individuals that are eligible to claim the income tax credit and are not PTE members may elect to claim the credit using Form 502CR, instead of Form 500CR. However, a donor may not claim the credit on both Form 500CR and Form 502CR. PTE members that are eligible for the credit must claim it on the Business Income Tax Credit Form 500CR. Corporations and Fiduciaries that are eligible to claim the credit must use Form 500CR to do so.

A taxpayer claiming the credit is required to add back the amount of the credit claimed to Maryland adjusted gross income or Maryland modified income, to the extent excluded from federal adjusted gross income.

Contact

Comptroller of Maryland

HBCU Tax Credit Office

HBCUtaxinfo@marylandtaxes.gov

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.

Individuals who are eligible to claim the Community Investment Tax Credit (CITC), and who are not PTE members may elect to claim this credit on Part H of Form 502CR, instead of claiming the credit on Form 500CR. However, an individual may not claim this credit on both Form 500CR and Form 502CR. PTE members who are eligible for this credit must claim the credit on Business Income Tax Credit Form 500CR.

Individuals who anticipate having a carryover of the CITC are advised to use Form 500CR instead of Form 502CR. Individuals who have an existing carryover on their 2017 Form 500CR may elect to use Form 502CR if their Excess Carryover Credit is attributable only to the CITC.

The credit is limited to 50% of the approved contributions (including real property) not to exceed $250,000.

NOTE: A copy of the required approval from the DHCD must be included with Form 502CR.

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, you are entitled to an excess carryover of the credit until it is used or it expires five years after the credit was earned, whichever comes first.

For more information contact:
Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite
Baltimore, MD 21202
410-209-5800
citc.nr@mdhousing.org