reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.05 - Tax Refund Intercept Program-Delinquent Debts › Section 03.04.05.04 - Investigation

Current through Register Vol. 51, No. 14, July 12, 2024
A. Within 15 days of the notice of the Central Collection Unit's intention to certify his name or of the Comptroller's having intercepted his refund, a debtor has the right to request an investigation by the Central Collection Unit if the debtor disputes the validity or the amount of the debt.
B. The Central Collection Unit shall submit to the debtor a report of its findings within 15 days from the date that the request for investigation was received. The report shall include a notice of the right to request a hearing on the findings and the method of doing so in accordance with the Administrative Procedure Act.
C. If the investigation results in the reduction or elimination of the debt, the Central Collection Unit shall take corrective action as necessary, by correcting the certification, discontinuing the certification procedures, or remitting to the debtor any intercepted amounts in excess of the debt. Corrective action shall be taken within 30 days of the date on which the Central Collection Unit completes a report of its findings.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.05 - Tax Refund Intercept Program-Delinquent Debts › Section 03.04.05.05 - Administrative Hearing

Current through Register Vol. 51, No. 14, July 12, 2024
A. A debtor may contest the findings of the investigation as to the validity and the amount of the debt in a hearing before the Central Collection Unit. Any request for a hearing shall be submitted in writing to the Central Collection Unit within 30 days of the date of which the investigation report was mailed to the debtor.
B. In the hearing before the Central Collection Unit, the debtor may not raise any issue regarding the amount of tax refund otherwise due the taxpayer. This restriction does not prejudice any rights available to the debtor under the tax laws.
C. The Central Collection Unit may deny a request for a hearing if the:
(1) Appeal is not filed timely and no good cause for the delay is shown;
(2) Issues raised in the appeal have been adjudicated by a court; or
(3) Issues raised in an intercept appeal have been adjudicated on an appeal of the certification and no new law or evidence has been introduced.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.06 - Tax Refund Intercept Program-Child Support › Section 03.04.06.01 - Purpose and Scope

Current through Register Vol. 51, No. 14, July 12, 2024
For regulations describing the procedures for the State Tax Refund Intercept Program, see COMAR 07.07.08.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.07 - Pass-Through Entity Tax › Section 03.04.07.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Distributable cash flow" has the meaning stated in Tax-General Article, §10-102.1(a)(2), Annotated Code of Maryland.
(2) "Distributive share of partnership income" means the total distributive share of income (loss) items as reported on Schedule K of the federal partnership return, Form 1065, less interest from U.S. obligations.
(3) "Member" has the meaning stated in Tax-General Article, §10-102.1(a)(4), Annotated Code of Maryland.
(4) "Multistate pass-through entity" means a pass-through entity doing business within and outside the State.
(5) "Nonresident entity" has the meaning stated in Tax-General Article, §10-102.1(a)(5), Annotated Code of Maryland.
(6) "Nonresident member" includes, unless specifically designated elsewhere, a nonresident individual member and a nonresident entity member.
(7) "Nonresident taxable income" means:
(a) For a pass-through entity that is a partnership (including a limited liability company taxed as a partnership and a business trust taxed as a partnership), the total nonresident members' share of the distributive share of partnership income allocated to this State; and
(b) For a pass-through entity that is an S corporation, the total nonresident members' pro rata share of S corporation income allocated to this State.
(8) "Pass-through entity", unless specifically designated elsewhere, has the meaning stated in Tax-General Article, §10-102.1(a)(7), Annotated Code of Maryland.
(9) "Pass-through entity's taxable income" means the portion of a pass-through entity's income under the federal Internal Revenue Code, calculated without regard to any deduction for taxes based on net income that are imposed by any state or political subdivision of a state, that is derived from or reasonably attributable to the trade or business of the pass-through entity in this State.
(10) "Pro rata share of S corporation income" means the total of the pro rata share of income (loss) items reported on Schedule K of Form 1120S, U.S. Income Tax Return for an S corporation, less interest from U.S. obligations.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.07 - Pass-Through Entity Tax › Section 03.04.07.02 - Imposition and Computation of Tax

Current through Register Vol. 51, No. 14, July 12, 2024
A. Imposition of Tax on Nonresident Members.
(1) A tax is imposed on a pass-through entity that:
(a) Has a nonresident member;
(b) Has nonresident taxable income for the taxable year; and
(c) Does not elect to pay the tax with respect to the distributive shares or pro rata shares of all members of the pass-through entity under Tax-General Article, § 10-102.1(b)(2)(ii), Annotated Code of Maryland.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.07 - Pass-Through Entity Tax › Section 03.04.07.03 - Filing of Returns and Payment of Tax

Current through Register Vol. 51, No. 14, July 12, 2024
A. Requirement to File Returns.
(1) Information Return. A pass-through entity doing business in this State and paying tax on behalf of nonresident members under Tax-General Article, § 10-102.1(b)(2)(i), Annotated Code of Maryland, shall file an information return using Form 510. A pass through entity paying tax on behalf of nonresident members under Tax-General Article, § 10-102.1(b)(2)(i), Annotated Code of Maryland, that is an S corporation may be required to file a corporate income tax return as provided in COMAR 03.04.03.03B(3).
(2) Income Tax Return. A pass-through entity doing business in this State and electing to be taxed on all members' distributive or pro rata shares under Tax-General Article, § 10-102.1(b)(2)(ii), Annotated Code of Maryland, shall file an income tax return using Form 511. An S corporation that pays the tax on all members' shares of income under Tax-General Article, § 10-102.1(b)(2)(ii), Annotated Code of Maryland, may be required to file a corporate income tax return as provided in COMAR 03.04.03.03B(3).
(3) Attachments.
(a) A pass-through entity that is a partnership (including a limited liability company taxed as a partnership and a business trust taxed as a partnership) shall file with the information return a copy of:
(i) Schedule K of Federal Form 1065; and
(ii) A Schedule K-1 for each nonresident member.
(b) A pass-through entity that is an S corporation shall file with the information return a copy of:
(i) Schedule K of Federal Form 1120S; and
(ii) A Schedule K-1 for each nonresident member.
(4) Due Date. Except as provided in §A(5) of this regulation, the due date for filing a return is:
(a) For a pass-through entity that is a partnership (including a limited liability company taxed as a partnership and a business trust taxed as a partnership), the 15th day of the 4th month following the close of the partnership's taxable year; and
(b) For a pass-through entity that is an S corporation, the 15th day of the 4th month following the close of the taxable year.
(5) Extension of Time to File.
(a) A pass-through entity that is a partnership (including a limited liability company taxed as a partnership and a business trust taxed as a partnership) shall be granted an automatic extension of up to 6 months by filing a Form 510E.
(b) A pass-through entity that is an S corporation shall be granted an automatic extension of up to 7 months by filing a Maryland Form 510E.
(c) Time for Filing. The due date for filing an extension is:
(i) For a pass-through entity that is a partnership (including a limited liability company taxed as a partnership and a business trust taxed as a partnership, the 15th day of the 4th month following the close of the partnership's taxable year; and
(ii) For a pass-through entity that is an S corporation, the 15th day of the 4th month following the close of the S corporation's taxable year.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.07 - Pass-Through Entity Tax › Section 03.04.07.04 - Statements to Members

Current through Register Vol. 51, No. 14, July 12, 2024
A. Requirements. A pass-through entity shall provide each member with an income tax statement.
B. Form and Contents of Statement.
(1) Form. A pass-through entity may elect to use a:
(a) Maryland Form 510, Schedule K-1;
(b) Modified Federal Form K-1; or
(c) Statement prepared by the pass-through entity on its own form.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.07 - Pass-Through Entity Tax › Section 03.04.07.05 - Composite Returns

Current through Register Vol. 51, No. 14, July 12, 2024
A. A pass-through entity may file a composite return on behalf of the nonresident members that are individuals (not including fiduciaries) pursuant to COMAR 03.04.02.04.
B. An electing pass-through entity may not file a composite return on behalf of any members.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.08 - Banks and Similar Institutions › Section 03.04.08.02 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) Banking institution.
(a) "Banking institution" means a:
(i) Commercial bank;
(ii) Savings bank, except a savings bank chartered by the Office of Thrift Supervision;
(iii) Trust company;
(iv) Company that substantially competes with national banks in the State;
(v) Credit company;
(vi) Finance company, other than a finance company that makes loans only to farmers for agricultural purposes;
(vii) International banking facility;
(viii) Loan company;
(ix) Mortgage company;
(x) Safe-deposit company; or
(xi) Savings and loan association.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.08 - Banks and Similar Institutions › Section 03.04.08.03 - Apportionment and Allocation

Current through Register Vol. 51, No. 14, July 12, 2024
A. Except as otherwise specifically provided, a banking institution whose business activity is taxable both within and without this State shall allocate and apportion its income as provided in this regulation.
B. All income which is includable in the Maryland modified income, as defined in Tax-General Article, § 10-304, Annotated Code of Maryland, shall be apportioned to this State by multiplying that income by the apportionment percentage. The apportionment percentage is a fraction (as described in §D of this regulation) consisting of the taxpayer's property factor (as described in Regulation .05 of this chapter), payroll factor (as described in Regulation .06 of this chapter), and receipts factor (as described in Regulation .04 of this chapter).
C. The apportionment formulas described in §D of this regulation are required only on original returns filed on or after this regulation's effective date.
D. Apportionment Formula.
(1) A banking institution operating as a unitary business within and outside the State shall, for tax years beginning before December 31, 2021, use a three-factor formula of property, payroll, and receipts to determine the part of the banking institution's Maryland modified income derived from or reasonably attributable to trade or business carried on in the State, as follows:
(a) For a taxable year beginning before January 1, 2018, the apportionment formula is a fraction, the numerator of which is the sum of the property factor, payroll factor, and twice the receipts factor, and the denominator is four;
(b) For a taxable year beginning after December 31, 2017, but before January 1, 2019, the apportionment formula is a fraction, the numerator of which is the sum of the property factor, the payroll factor and three times the receipts factor, and the denominator of which is five;
(c) For a taxable year beginning after December 31, 2018, but before January 1, 2020, the apportionment formula is a fraction, the numerator of which is the sum of the property factor, the payroll factor, and four times the receipts factor, and the denominator of which is six;
(d) For a taxable year beginning after December 31, 2019, but before January 1, 2021, the apportionment formula is a fraction, the numerator of which is the sum of the property factor, the payroll factor, and five times the receipts factor, and the denominator of which is seven; and
(e) For a taxable year beginning after December 31, 2020, but before January 1, 2022, the apportionment formula is a fraction, the numerator of which is the sum of the property factor, the payroll factor, and six times the receipts factor, and the denominator of which is eight.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.08 - Banks and Similar Institutions › Section 03.04.08.05 - Property Factor

Current through Register Vol. 51, No. 14, July 12, 2024
A. The property factor is a fraction, the numerator of which is the average value of real property and tangible personal property rented to the taxpayer that is located or used within this State during the taxable year, the average value of the taxpayer's real and tangible personal property owned that is located or used within this State during the taxable year, and the average value of the taxpayer's loans and credit card receivables that are located within this State during the taxable year, and the denominator of which is the average value of all the property located or used within and without this State during the taxable year.
B. The property factor shall include only property the income or expenses of which are included, or would have been included if not fully depreciated or expensed, or depreciated or expensed to a nominal amount, in the computation of the apportionable income base for the taxable year.
C. Value of Property Owned by the Taxpayer.
(1) The value of real property and tangible personal property owned by the taxpayer is the original cost or other basis of the property for federal income tax purposes without regard to depletion, depreciation, or amortization.
(2) Loans are valued at their outstanding principal balance, without regard to any reserve for bad debts. If a loan is charged-off in whole or in part for federal income tax purposes, the portion of the loan charged off is not outstanding. A specifically allocated reserve established pursuant to regulatory or financial accounting guidelines which is treated as charged-off for federal income tax purposes shall be treated as charged-off for purposes of this section.
(3) Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts. If a credit card receivable is charged-off in whole or in part for federal income tax purposes, the portion of the receivable charged-off is not outstanding.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.08 - Banks and Similar Institutions › Section 03.04.08.06 - Payroll Factor

Current through Register Vol. 51, No. 14, July 12, 2024
A. The payroll factor is a fraction, the numerator of which is the total amount paid in this State during the taxable year by the taxpayer for compensation and the denominator of which is the total compensation paid both within and without this State during the taxable year. The payroll factor shall include only that compensation which is included in the computation of the apportionable income tax base for the taxable year.
B. Payments made to an independent contractor or any other person not properly classifiable as an employee shall be excluded from both the numerator and denominator of the factor.
C. Compensation is paid in this State if any one of the following tests, applied consecutively, is met:
(1) The employee's services are performed entirely within this State;
(2) The employee's services are performed both within and without the State, but the service performed without the State is incidental to the employee's service within the State; or
(3) The employee's services are performed both within and without this State, and:
(a) The employee's principal base of operations is within this State,
(b) There is no principal base of operations in any state in which some part of the services is performed, but the place from which the services are directed or controlled is in this State, or
(c) The principal base of operations and the place from which the services are directed or controlled are not in any state in which some part of the service is performed but the employee's residence is in this State.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.09 - Credit for Employer-Provided Long-Term Care Insurance › Section 03.04.09.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Long-term care insurance" has the meaning stated in Insurance Article, §
										18-101(f), Annotated Code of Maryland.
(2) "Employer" has the meaning stated in §3401(d) of the Internal Revenue Code.
(3) "Employee" means an individual who is employed in this State.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.09 - Credit for Employer-Provided Long-Term Care Insurance › Section 03.04.09.02 - Credit Allowed

Current through Register Vol. 51, No. 14, July 12, 2024
Subject to the limitations in Regulation .03 of this chapter, an employer may claim a credit equal to 5 percent of the costs incurred by the employer during the taxable year to provide long-term care insurance as part of an employee benefit package.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.09 - Credit for Employer-Provided Long-Term Care Insurance › Section 03.04.09.03 - Limitations

Current through Register Vol. 51, No. 14, July 12, 2024
A. The credit in Regulation .02 of this chapter may not exceed the lesser of:
(1) $5,000; or
(2) $100 multiplied by the number of employees covered by long-term care insurance provided under the employee benefit package.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.09 - Credit for Employer-Provided Long-Term Care Insurance › Section 03.04.09.04 - Exempt Organizations

Current through Register Vol. 51, No. 14, July 12, 2024
If an employer is an organization that is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code, then the credit under this chapter may be taken against the State income tax due on unrelated business taxable income as provided under Tax-General Article, §§10-304 and 10-812, Annotated Code of Maryland.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.09 - Credit for Employer-Provided Long-Term Care Insurance › Section 03.04.09.05 - Carryover of Excess Credit

Current through Register Vol. 51, No. 14, July 12, 2024
If the credit allowed under this chapter in any taxable year exceeds the total of tax otherwise payable by the employer for that taxable year, the employer may apply the excess as a credit for succeeding taxable years until the earlier of:
A. The full amount of the excess is used; or
B. The expiration of the fifth taxable year after the taxable year in which the costs to provide long-term care insurance as part of an employee benefit package were incurred.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Basic credit" means the research and development tax credit described in Regulation .02C(1) of this chapter.
(2) "Business entity" means a sole proprietorship, partnership, corporation, or other entity doing business in the State.
(3) "Credit year" means the year for which the credit is being claimed.
(4) "Department" means the Department of Business and Economic Development.
(5) "Growth credit" means the research and development tax credit described in Regulation .02C(2) of this chapter.
(6) "Maryland base amount" means the base amount as defined in §41(c) of the Internal Revenue Code, that is attributable to Maryland, determined by:
(a) Substituting "Maryland qualified research and development expense" for "qualified research expense";
(b) Substituting "Maryland qualified research and development" for "qualified research"; and
(c) Using, instead of the "fixed base percentage":
(i) The percentage that the Maryland qualified research and development expense for the 4 taxable years immediately preceding the taxable year in which the expense is incurred is of the gross receipts for those years; or
(ii) For a taxpayer that has fewer than 4 but at least 1 prior taxable year, the percentage as determined under §B(6)(c)(i) of this regulation, determined using the number of immediately preceding taxable years that the taxpayer has.
(7) "Maryland adjusted base amount" means the Maryland base amount modified for a period of less than 12 months.
(8) "Maryland gross receipts" means gross receipts that are reasonably attributable to the conduct of a trade or business in the State, determined under COMAR 03.04.03.08.
(9) "Maryland qualified research and development" means qualified research, as defined in §41(d) of the Internal Revenue Code and regulations thereunder, that is conducted in the State.
(10) "Maryland qualified research and development expense" means qualified research expenses, as defined in §41(b) of the Internal Revenue Code and regulations thereunder, incurred for Maryland qualified research and development.
(11) "Small business" means a for-profit corporation, limited liability company, partnership, or sole proprietorship with net book value assets totaling, at the beginning or the end of the taxable year for which Maryland qualified research and development expenses are incurred, as reported on the balance sheet, less than $5,000,000.
(12) "Taxpayer" means an individual or a corporation required to pay an income tax or file an income tax return.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.02 - Calculation of Credit

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Maryland base percentage is:
(1) The percentage that the Maryland qualified research and development expense for the 4 taxable years immediately preceding the taxable year in which the expense is incurred is of the business entity's Maryland gross receipts for those years; or
(2) For a business entity that has fewer than 4 but at least 1 taxable year, the percentage as determined under §A(1) of this regulation using the number of immediately preceding taxable years that the business entity has.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.03 - Calculation of Credit for Partial or Short Tax Year

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Maryland adjusted base amount for a partial or short year taxpayer is the Maryland base amount multiplied by a fraction:
(1) The numerator of which is the number of days in the calendar year included in the partial or short tax year; and
(2) The denominator of which is 365.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.04 - Maximum Annual Credits

Current through Register Vol. 51, No. 14, July 12, 2024
A. Except as provided in §D of this regulation, the total amount of basic credits approved by the Department under Regulations .02C(1) and .03C(1) of this chapter may not exceed $4,000,000 for any calendar year.
B. For any calendar year, if the total amount of basic credits applied for by all business entities is less than $4,000,000, the maximum growth credit specified under §C of this regulation shall be increased for that calendar year by the amount equal to $4,000,000 minus the total amount of the basic credits applied for by all business entities.
C. Except as provided in §B of this regulation, the total amount of growth credits approved by the Department under Regulations .02C(2) and .03C(2) of this chapter may not exceed $4,000,000 for any calendar year.
D. For any calendar year, if the total amount of growth credits applied for by all business entities is less than $4,000,000, the maximum basic credit specified under §A of this regulation shall be increased for that calendar year by the amount equal to $4,000,000 minus the total amount of the growth credits applied for by all business entities.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.05 - Application for Credit

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application. By September 15 of the calendar year following the end of the taxable year in which the Maryland qualified research and development expenses were incurred, a business entity shall submit to the Department a completed application for certification on the form prescribed by the Department. The business entity shall provide the following information:
(1) The business entity's name and address;
(2) The business entity's federal identification number;
(3) The beginning and ending dates of the business entity's fiscal year, or, if a partial year, then the fraction of a year for which the credit is being claimed;
(4) The North American Industrial Classification System (NAICS) code number for the business entity;
(5) The amount of the research and development expenses eligible for the federal research and development credit for the current and each of the previous 4 tax years and the corresponding average for the previous 4 tax years;
(6) The amount of Maryland qualified research and development expenses for the current tax year, the previous 4 tax years, and the corresponding average for the previous 4 tax years;
(7) The basic credit being applied for in the current tax year, before allocation and certification by the Department;
(8) The growth credit being applied for in the current tax year;
(9) The Maryland base percentage;
(10) The Maryland base amount or Maryland adjusted base amount; and
(11) Any other information required by the Department.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.06 - Certification of Credit

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Department shall certify to the taxpayer the amount of the basic and growth research and development tax credits approved by the Department for the taxpayer. The Department shall issue this certification by December 15 of the calendar year following the end of the taxable year in which the Maryland qualified research and development expenses were incurred.
B. If the total amount of the credits applied for by all business entities under Regulation .05 of this chapter exceeds the maximum credit amounts available under Regulation .04 of this chapter, then the Department shall approve a credit for each applicant in an amount equal to the product of multiplying the credit applied for by the applicant times a fraction:
(1) The numerator of which is the maximum specified under Regulation .04 of this chapter; and
(2) The denominator of which is the total of all credits applied for by all applicants under Regulation .05 of this chapter in the calendar year.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.07 - Claiming the Credit

Current through Register Vol. 51, No. 14, July 12, 2024
To claim the credits approved by the Department, a taxpayer shall:
A. File an amended income tax return for the taxable year in which the Maryland qualified research and development expense was incurred; and
B. Attach a copy of the Department's certification to the amended income tax return.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.08 - Carryover of Tax Credits

Current through Register Vol. 51, No. 14, July 12, 2024
A. Except as provided in §C of this regulation, if the credit allowed in any taxable year exceeds the State income tax for that taxable year, a taxpayer may apply the excess as a credit against the State income tax for succeeding taxable years until the earlier of:
(1) The full amount of the excess is used;
(2) For credits certified by the Department before July 1, 2005, the expiration of the 15th taxable year after the taxable year in which the Maryland qualified research and development expense was incurred; or
(3) For credits certified by the Department after June 30, 2005, the expiration of the 7th taxable year after the taxable year in which the Maryland qualified research and development expense was incurred.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.09 - Affiliated Corporations and Entities Under Common Control

Current through Register Vol. 51, No. 14, July 12, 2024
A. All members of the same controlled group of corporations, as defined in §41(f) of the Internal Revenue Code, and all entities under common control, whether incorporated or not, shall be treated as a single taxpayer for purposes of these tax credits.
B. The credits allowable to each member shall be determined by multiplying the total credits certified by the Department for the controlled group by a fraction:
(1) The numerator of which is the Maryland qualified research and development expenses incurred by the separate member; and
(2) The denominator of which is the total Maryland qualified research and development expenses incurred by all members of the controlled group.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.10 - Mergers and Acquisitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In determining the carryover of unused credits and the effect of a merger or acquisition, federal law shall be applied to the corporations as if they were separate corporations. Any provisions under federal law that would allow separate corporations that are merged or acquired to carry forward unused credits on the surviving corporation's returns shall apply to the carryover of this credit for State purposes.
B. Unused Credits.
(1) In a transaction involving an asset purchase, unused credits:
(a) Do not transfer from the target company to the purchaser; and
(b) Remain with the target company.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.11 - Short Taxable Years

Current through Register Vol. 51, No. 14, July 12, 2024
A. Eligible Expenses. A taxpayer may only claim the credit for Maryland qualified research and development expenses incurred during its taxable year. If the business entity has a short taxable year, only the Maryland qualified research and development expenses incurred during the short taxable year are allowed on the short year return.
B. If the taxpayer incurs Maryland qualified research and development expenses in 2 taxable years during a calendar year, one of which is a short taxable year, the business entity may only claim a credit on the short taxable year return in an amount equal to the total credits certified by the Department multiplied by a fraction:
(1) The numerator of which is the Maryland qualified research and development expenses incurred during the short taxable year; and
(2) The denominator of which is the Maryland qualified research and development expenses incurred during the entire calendar year.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.12 - Addition Modifications

Current through Register Vol. 51, No. 14, July 12, 2024
A. Individuals. To the extent an individual is allowed a credit on the Maryland individual income tax return under Regulation .05 of this chapter, the amount of the credit claimed shall be added to federal adjusted gross income to calculate the individual's Maryland adjusted gross income.
B. Corporations. To the extent a corporation is allowed a credit on its Maryland income tax return under Regulation .05 of this chapter, the amount of the credit claimed shall be added to federal taxable income to calculate the corporation's Maryland modified income.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.13 - Partnerships, S Corporations, Limited Liability Companies, Business Trusts, Estates, and Trusts

Current through Register Vol. 51, No. 14, July 12, 2024
A. Partnerships, S Corporations, Limited Liability Companies, and Business Trusts. In the case of a subchapter S corporation, partnership, limited liability company, or business trust, the amount of the credits computed for the pass-through entity shall be allocated among the owners as agreed to in writing by the owners. If there is no written agreement governing the allocation of this credit, the credit shall be allocated in the same proportion as other items are allocated for the taxable year.
B. Estates and Trusts. In the case of an estate or trust, the amount of the credits computed for the estate or trust for any taxable year shall be apportioned among the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each.
C. Statements to Partners, Shareholders, Members, and Beneficiaries.
(1) Requirements. A partnership, S Corporation, limited liability company, business trust, estate, or trust shall provide each of its partners, shareholders, members, or beneficiaries with an income tax statement.
(2) Form and Contents of Statement.
(a) Form. A partnership, S corporation, limited liability company, business trust, estate, or trust may elect to use a:
(i) Maryland Form 510, Schedule K-1;
(ii) Modified federal Schedule K-1; or
(iii) Statement prepared on its own form.
(b) Contents. In addition to the contents required under COMAR 03.04.07.04B(2), the statement shall contain the amount of each credit apportioned to the individual partner, shareholder, member, or beneficiary.
(3) Statement Attached to Return. A partner, shareholder, member, or beneficiary shall attach a copy of the statement to the income tax return on which the credit is claimed.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.10 - Maryland Research Development Tax Credit › Section 03.04.10.14 - Continuity if Federal Provisions Repealed or Terminate

Current through Register Vol. 51, No. 14, July 12, 2024
If the provisions of §41 of the Internal Revenue Code governing the federal research and development tax credit are repealed or terminate, the provisions of this chapter shall continue to operate as if the provisions of §41 of the Internal Revenue Code remain in effect, and the Maryland research and development tax credit under this chapter shall continue to be available.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.11 - Arts and Entertainment Districts › Section 03.04.11.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Artist" means a qualifying residing artist as defined in Economic Development Article, §
										4-701(f), Annotated Code of Maryland.
(2) "Artistic work" has the meaning stated in Economic Development Article, §
										4-701(b), Annotated Code of Maryland.
(3) "District" means an arts and entertainment district as defined in Economic Development Article, §
										4-701(c), Annotated Code of Maryland.
(4) "Subtraction" means the modification to federal adjusted gross income as set forth in Tax-General Article, §10-207(v), Annotated Code of Maryland.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.11 - Arts and Entertainment Districts › Section 03.04.11.02 - Sales and Publication of Artistic Work

Current through Register Vol. 51, No. 14, July 12, 2024
A. To the extent included in federal adjusted gross income, the amount of income derived by an artist from the sale or publication of an artistic work within the district located in the county where the artist owns or rents residential real property and in which the artist conducts a business is allowed as a subtraction from federal adjusted gross income.
B. Income that an artist earns from the sale or publication of artistic work created by the artist within the district and sold within the district qualifies for the subtraction.
C. Income that an artist earns from the sale or publication of artistic work created by the artist within the district and sold outside the district does not qualify for the subtraction.
D. Income that an artist earns from the sale or publication of artistic work created by the artist outside the district and sold within the district does not qualify for the subtraction.
E. Income that an artist earns from the sale or publication of artistic work created by the artist outside the district and sold outside the district does not qualify for the subtraction.
F. Income received by an artist from internet, mail order, and catalog sales of artistic work created within the district by the artist that is shipped from within the district qualifies for the subtraction.
G. Income in the nature of royalties, licenses, or other future revenues from the sale of reproduction or publishing rights does not qualify for the subtraction.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.11 - Arts and Entertainment Districts › Section 03.04.11.03 - Production and Performance of Artistic Work

Current through Register Vol. 51, No. 14, July 12, 2024
A. To the extent included in federal adjusted gross income, the amount of income derived by an artist from the production or performance of an artistic work within the district located in the county where the artist owns or rents residential real property and in which the artist conducts a business is allowed as a subtraction from federal adjusted gross income.
B. Income that an artist earns from a musical performance, the performance of a play or dance, the showing of a film produced within the district by the artist, or acting in a film within the district qualifies for the subtraction.
C. Income that an artist earns from a musical performance, the performance of a play or dance, the showing of a film, or acting in a film outside the district does not qualify for the subtraction.
D. Income that an artist earns from the creation, choreography, composition, or production of a play, dance, music, or film within the district qualifies for the subtraction.
E. Income that an artist earns from the creation, choreography, composition, or production of a play, dance, music, or film outside the district does not qualify for the subtraction.
F. Income received by an artist from the internet broadcast of an artistic work from within the district qualifies for the subtraction.
G. Income in the nature of royalties, licenses, or other future revenues from the creation or choreography of a play or dance, the composition of music, or the production of a film does not qualify for the subtraction.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.11 - Arts and Entertainment Districts › Section 03.04.11.04 - Availability of Subtraction

Current through Register Vol. 51, No. 14, July 12, 2024
A. Except as provided in §B of this regulation, the subtraction provided in Regulations .02 and .03 of this chapter is available only to individuals.
B. The subtraction provided in Regulations .02 and .03 of this chapter is available to a single-member limited liability company, whose sole member is an individual, if the limited liability company is disregarded as an entity separate and apart from its member for federal income tax purposes and as such, the profit or loss of the limited liability company is reflected on the income tax return filed by the member of the limited liability company.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.11 - Arts and Entertainment Districts › Section 03.04.11.05 - Procedures

Current through Register Vol. 51, No. 14, July 12, 2024
A. An individual claiming the subtraction shall complete Form 502AE and attach the form to the Maryland individual income tax return.
B. Individuals claiming the subtraction shall maintain receipts, books, accounts, and any other documentation relating to the sale, publication, production, or performance of artistic work by an artist.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.12 - Nonresident Real Estate Withholding Tax › Section 03.04.12.01 - Applicability

Current through Register Vol. 51, No. 14, July 12, 2024
Effective Date. This chapter applies to all deeds and other instruments of transfer recorded with the clerk or filed with the Department on or after October 1, 2003.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.12 - Nonresident Real Estate Withholding Tax › Section 03.04.12.03 - Withholding Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Except as provided in §B of this regulation, a deed or other instrument transferring title may not be:
(1) Recorded with the clerk; or
(2) Filed with the Department.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.12 - Nonresident Real Estate Withholding Tax › Section 03.04.12.04 - Certificate of Full or Partial Exemption

Current through Register Vol. 51, No. 14, July 12, 2024
A. The transferor may file an Application for Certificate of Full or Partial Exemption (Form MW506AE) with the Comptroller.
B. The transferor shall:
(1) File the Application for Certificate of Full or Partial Exemption with the Comptroller at least 21 days before the settlement date;
(2) Indicate on the Application for Certificate of Full or Partial Exemption the reason or reasons the transfer qualifies for a full or partial exemption from the withholding tax; and
(3) Include with the Application for Certificate of Full or Partial Exemption sufficient documentation to support the request.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.12 - Nonresident Real Estate Withholding Tax › Section 03.04.12.05 - Responsibilities of Transferee and Real Estate Reporting Person at Settlement

Current through Register Vol. 51, No. 14, July 12, 2024
A. Unless the transfer is fully exempt from the withholding requirements of this chapter, the transferee or real estate reporting person shall:
(1) Withhold at settlement the tax required under Regulation .03B(1) of this chapter; and
(2) Remit the tax to the clerk or to the Department in accordance with Regulation .06 of this chapter.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.12 - Nonresident Real Estate Withholding Tax › Section 03.04.12.06 - Additional Requirements for Recordation or Filing

Current through Register Vol. 51, No. 14, July 12, 2024
A. If a payment is required pursuant to Regulation .03B(1) of this chapter, the person presenting the deed or other instrument of transfer shall present the following additional documents to the clerk or the Department:
(1) Copies A and B of the Return of Income Tax Withholding for Nonresident Sale of Real Property;
(2) If issued by the Comptroller, the Certificate of Full or Partial Exemption; and
(3) A separate check in the amount of the tax required to be withheld that is made payable to the clerk or to the Department.
Code of Maryland Regulations › Title 03 - COMPTROLLER OF THE TREASURY › Subtitle 04 - INCOME TAX › Chapter 03.04.12 - Nonresident Real Estate Withholding Tax › Section 03.04.12.07 - Duties of the Clerk or the Department

Current through Register Vol. 51, No. 14, July 12, 2024
A. The clerk or the Department shall review the documents presented for recordation or filing for compliance with the requirements of this chapter.
B. If applicable, the clerk or the Department shall collect any tax due on the transfer.
C. On or before the 21st day of the month following the month in which the clerk or the Department receives the payment of tax under Regulation .03B(1) of this chapter, the clerk or the Department shall:
(1) Pay over to the Comptroller the amount of tax collected;
(2) Submit to the Comptroller:
(a) The Monthly Reconciliation Report for Sales of Real Property by Nonresidents (Form MW508NRS);
(b) The Sales of Real Property by Nonresidents Schedule of Withholding Receipts that includes the:
(i) Name of the transferor;
(ii) Address of the transferor;
(iii) Social Security number or federal employer identification number of the transferor;
(iv) Validation number of the transfer; and
(v) Amount of tax collected; and
(c) Copy A of each Return of Income Tax Withholding for Nonresident Sale of Real Property.