2023 Maryland Statutes › Housing and Community Development › Division I - Housing and Community Programs › Title 6 - Division of Neighborhood Revitalization › Subtitle 9 - Catalytic Revitalization Project Tax Credit › Section 6-903 - Initial and Final Tax Credit Certificate -- Limitations -- Allocation of Credit -- Transfer of Tax Credit

(a)    (1)    Subject to the limitations of paragraphs (2) and (3) of this subsection and subsection (b) of this section, on application by an individual, a nonprofit organization, or a business entity, the Secretary shall issue:
(i)    an initial tax credit certificate in an amount equal to 20% of the individual’s, nonprofit organization’s, or business entity’s estimated new construction costs and rehabilitation costs for the project; and
(ii)    on completion of the catalytic revitalization project, a final tax credit certificate in an amount equal to 20% of the individual’s, nonprofit organization’s, or business entity’s actual new construction costs and rehabilitation costs for the project.
(2)    For purposes of calculating the credit authorized under paragraph (1) of this subsection, new construction costs:
(i)    must be related to the construction of new structures that connect, expand, or integrate the existing structures to be rehabilitated; and
(ii)    may not exceed 50% of the total costs of the catalytic revitalization project.
(3)    (i)    Except as provided in subparagraph (ii) of this paragraph, the Secretary may not issue an initial or final tax credit certificate under paragraph (1) of this subsection before January 1, 2025.
(ii)    The Secretary may issue an initial or final tax credit certificate under paragraph (1) of this subsection before January 1, 2025, if the Comptroller determines that issuing the tax credit certificate will not result in a reduction or repayment of federal funds authorized under the federal American Rescue Plan Act of 2021.
(b)    (1)    The Secretary may not award an initial credit certificate for more than one catalytic revitalization project within a 2–year period.
(2)    For any catalytic revitalization project, the Secretary may not issue tax credit certificates for credit amounts in the aggregate totaling more than $15,000,000.
(c)    If the tax credit allowed under this subtitle in any taxable year exceeds the total tax otherwise payable by the individual, nonprofit organization, or business entity for that taxable year, the individual, nonprofit organization, or business entity may claim a refund in the amount of the excess.
(d)    The credit allowed under this subtitle may be allocated among the partners, members, or shareholders of a business entity in any manner agreed to by those persons in writing.
(e)    (1)    The amount of the tax credit allowed, but not claimed, under this subtitle may be transferred, by written instrument, in whole or in part, to any individual, nonprofit organization, or business entity.
(2)    For the taxable year of any transfer under this subsection, the transferee under paragraph (1) of this subsection may apply the tax credit against the total tax otherwise payable by the transferee in that taxable year.
(3)    If the tax credit exceeds the total tax otherwise payable by the transferee in any taxable year, the transferee:
(i)    may claim a refund in the amount of the excess;
(ii)    may carry forward and apply the excess credit for succeeding taxable years until the full amount of the credit is used; or
(iii)    may transfer the remainder of the tax credit to an individual, a nonprofit organization, or a business entity in accordance with paragraph (1) of this subsection.