Maryland Administrative Code

.18 Subtraction for Contributions to First-Time Homebuyer Savings Accounts. A. Definitions. (1) In this regulation, the following terms have the meaning indicated. (2) Terms Defined. (a) “Account holder” means a first-time homebuyer who establishes a first-time homebuyer savings …

.01 Scope. A. This chapter provides specific guidance to all corporate entities subject to the Maryland income tax laws. B. COMAR 03.04.08 applies to banking and similar institutions as defined in that chapter. Corporations not coming within that definition, including subsidiarie…

.02 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Allocation” means the assignment of income to a particular state. (2) “Apportionment” means the allocation of income between states by the use of a formula.

.03 Corporations Required to File. A. A corporation, not expressly exempt, having any income allocable to this State, shall file a Maryland corporation income tax return even though it has no Maryland taxable income. B. Special Requirements. Special requirements apply to the foll…

.04 Filing of Returns. A. A corporation shall file a corporation income tax return by the 15th day of the 4th month following the end of the tax year or period. The return shall be filed with a copy of the federal return for the corresponding tax year or period. B. Certain organi…

.05 Computing the Tax. A. Accounting Periods. The taxable year or period for which the return is filed shall be the same as that for which the federal return is filed, and in every instance that a federal return is required, a corresponding State return shall be filed. B. Use of …

.06 Other Forms, Returns, Schedules, and Statements. A. Copy of Federal Return Required. (1) Failure to attach the required federal copy to the Maryland return shall constitute a nonfiling. (2) Corporations included in a consolidated filing for federal purposes shall attach a cop…

.07 Losses, Audits, and Appeals. A. Net Operating Loss Deduction. (1) For the loss year, the net operating loss may be used to offset Maryland modifications. (2) The deductions for carryback and carryover shall be calculated and claimed following federal income tax provisions, an…

.08 Apportionment of Income. A. Corporations engaged in business within and outside the State shall allocate income to reflect the amount attributable to this State. B. Corporations operating within and outside the State as unitary businesses shall use an apportionment formula to…

.09 Apportionment of Income — Motion Picture and Television Film Producers and Television Networks. A. Scope. (1) This regulation applies to: (a) Motion picture and television film producers and affiliated distribution companies; (b) Producers of television commercials; (c) Telev…

.10 Apportionment of Income—Single Sales Factor Apportionment for Manufacturing Corporations. A. Scope. This regulation provides specific guidelines for manufacturing corporations subject to the Maryland income tax laws. B. In this regulation, the following terms have the meaning…

.11 Donations to Diaper Banks and Other Charitable Entities. A. Definitions. (1) In this regulation, the following terms have the meanings indicated. (2) Terms Defined. (a) “Diaper bank” means a nonprofit organization located in the State that: (i) Is qualified as tax exempt unde…

.01 Order of Payment for Unpaid Income Tax. A. Income tax payments received by the Comptroller shall be applied as follows: (1) Payments accompanying returns shall be applied to the period covered by the return in the following manner: (a) First to any penalty; (b) Second to accr…

.01 Definitions. A. “Central Collection Unit” means the Central Collection Unit of the Department of Budget and Management. B. “Certify” means to furnish to the Comptroller the names, with other identification including address, Social Security or federal tax identification numbe…

.02 Duties of the Central Collection Unit. A. The Central Collection Unit may certify to the Comptroller the name of any debtor: (1) Against whom it has obtained a judgment in any court; or (2) Whose account has been referred to the Central Collection Unit in accordance with COMA…

.03 Duties of the Comptroller. A. As frequently as practical, the Comptroller shall compare the names of the debtors certified by the Central Collection Unit with the names of taxpayers who file tax returns and are entitled to a tax refund. B. If a match is made between a taxpaye…

.04 Investigation. 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 va…

.05 Administrative Hearing. 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 da…

.01 Purpose and Scope. For regulations describing the procedures for the State Tax Refund Intercept Program, see COMAR 07.07.08.

.01 Definitions. 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 t…

.02 Imposition and Computation of Tax. 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…

.03 Filing of Returns and Payment of Tax. 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 fi…

.04 Statements to Members. 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 …

.05 Composite Returns. 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 mem…

.01 Scope. This chapter provides specific guidance to banking and similar institutions subject to the Maryland income tax laws.

.02 Definitions. 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) T…

.03 Apportionment and Allocation. 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…

.04 Receipts Factor. A. The receipts factor is a fraction, the numerator of which is the receipts of the taxpayer in this State during the taxable year and the denominator of which is the receipts of the taxpayer within and without this State during the taxable year. The method o…

.05 Property Factor. 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 rea…

.06 Payroll Factor. 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 th…

.01 Definitions. 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 Int…

.02 Credit Allowed. 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. Cross Refe…

.03 Limitations. 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. B. The credit in §A of this regulation and…

.04 Exempt Organizations. 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 T…

.05 Carryover of Excess Credit. 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 f…

.01 Definitions. 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…

.02 Calculation of Credit. 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 gros…

.03 Calculation of Credit for Partial or Short Tax Year. 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 o…

.04 Maximum Annual Credits. 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 a…

.05 Application for Credit. 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 cer…

.06 Certification of Credit. 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 foll…

.07 Claiming the Credit. 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 certificat…

.08 Carryover of Tax Credits. 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 …

.09 Affiliated Corporations and Entities Under Common Control. 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…

.10 Mergers and Acquisitions. 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 corporatio…

.11 Short Taxable Years. 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 exp…

.12 Addition Modifications. 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 individ…