Md. Code Regs. 24.05.03.11

Current through Register Vol. 51, No. 24, December 2, 2024

Section 24.05.03.11 - Claiming the Tax Credit

A. Only the applicant is eligible to claim the tax credit, or so much of the tax credit as is allocable to the permitted taxpayer.

B. The applicant may not claim the tax credit until the date of the issuance of the final certificate issued to the applicant.

C. The applicant shall claim the tax credit on the income tax return for the taxable year in which the applicant makes the investment in the qualified Maryland biotechnology company.

D. The date the applicant makes the investment in the qualified Maryland biotechnology company is the exact date of the investment as provided in the final certificate issued to the applicant.

E. The applicant shall claim the tax credit against the State income tax for the amount of the credit as provided in the final certificate issued to the applicant. If the amount of the credit exceeds the total tax otherwise payable for that taxable year, the applicant may claim a refund in the amount of the excess.

F. The applicant shall claim the tax credit by filing the required income tax return, with the following attachments:

(1) A copy of the final certificate issued to the applicant;

(2) An affidavit, in a form approved by the Comptroller, of the applicant or its principals, as provided in §G of this regulation; and

(3) If applicable, a Schedule K-1 or other similar schedule filed with the applicant's federal income tax return showing the items of income, deduction, and credit allocated by the applicant to the owners of interests in the equity of the applicant.

G. An affidavit under §F(2) of this regulation shall state that, if within 2 years after the close of the taxable year in which a final certificate is issued to the applicant, the applicant sells, transfers, or disposes of the ownership interest in the qualified Maryland biotechnology company for which the tax credit was approved, the applicant shall give notice to the Comptroller on a form approved by the Comptroller.

H. If the applicant is subject to recapture, the applicant shall report the applicable amount on its Maryland income tax return for the taxable year in which the event causing the recapture occurred.

Md. Code Regs. 24.05.03.11

Regulations .11 adopted effective September 17, 2012 (39:18 Md. R. 1197)