Md. Code Regs. 10.61.01.06

Current through Register Vol. 51, No. 12, June 14, 2024

Section 10.61.01.06 - Hiring Tax Credits

A. The hiring tax credit is a refundable credit of $10,000 against the State income tax for hiring for a qualified position in a Health Enterprise Zone by a Health Enterprise Zone employer.

B. A Health Enterprise Zone employer may be eligible for a hiring tax credit available under Tax-General Article, §10-731, Annotated Code of Maryland, if the Health Enterprise Zone employer:

(1) Creates one or more qualified positions during any 24-month period;

(2) Demonstrates support from the Health Enterprise Zone in which the Health Enterprise Zone employer is operating in the form and manner specified by the Department; and

(3) Meets any other criteria specified in applicable tax forms by the Department.

C. Certification for Hiring Tax Credit.

(1) To be certified as preliminarily eligible to receive the hiring tax credit, a Health Enterprise Zone employer shall submit an application for preliminary certification to the Department on a form approved by the Department.

(2) To receive final certification of eligibility to receive the hiring tax credit, a Health Enterprise Zone employer shall:

(a) Have received preliminary certification; and

(b) Submit an application for final certification to the Department on a form approved by the Department.

(3) To claim the hiring tax credit, the Health Enterprise Zone employer shall:

(a) Claim the credit on an electronically filed original or amended Maryland income tax return;

(b) Include a copy of the final certification from the Department with the electronic return as a binary attachment; and

(c) Meet any other criteria specified in applicable tax forms by the Comptroller.

D. Conditions on Hiring Tax Credit.

(1) The hiring tax credit shall be taken over a 24-month period, with 1/2 for the credit amount allowed each year beginning with the first taxable year in which the credit is certified.

(2) If the qualified position is filled for a period of less than 24 months, the hiring tax credit shall be recaptured as set forth under Tax-General Article, §10-731(d)(2)(iv), Annotated Code of Maryland

Md. Code Regs. 10.61.01.06

Regulation .06 adopted effective 41:25 Md. R. 1485, eff.12/22/2014