Md. Code Regs. 24.05.12.05

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

Section 24.05.12.05 - Calculation of Credit for Partial or Short Taxable Year

A. The Maryland qualified research and development expenses for a partial year taxpayer are:

(1) The actual Maryland qualified research and development expenses incurred during the partial taxable year; or

(2) The total Maryland qualified research and development expenses incurred during the entire taxable year multiplied by a fraction:

(a) The numerator of which is the number of days in the calendar year included in the partial taxable year; and

(b) The denominator of which is 365.

B. The partial or short year taxpayer may claim a credit against the State income tax in the amount of 10 percent of the Maryland qualified research and development expenses paid or incurred by the taxpayer during the taxable year.

Md. Code Regs. 24.05.12.05