Maryland offers the following credits for those that qualify:
State Earned Income Credit
If you claimed the earned income credit on your federal return or would otherwise be eligible to claim an earned income credit on your federal return but you or your spouse filing with an ITIN were not, you may claim the Maryland earned income credit.
If you are married filing jointly or separately with at least one qualifying child, then you may claim 50% of the federal credit on your MD return.
Filers who are single, head of household or qualifying surviving spouse without a qualifying child may not claim 100% of the federal earned income credit or $600, whichever is less.
State Poverty Level Credit
Those who are claimed as a dependent are not eligible for this credit. If your earned income and Federal AGI plus additions are below the poverty level, you may be eligible to claim 5% of your earned income. This credit is nonrefundable. (Will only reduce your taxable income)
Credit for Taxes Paid to Another State
If you are a Maryland resident who earned income in another state and both Maryland and the other state imposed tax on the income, you may be eligible for a credit on your Maryland return.
Credit for Child and Dependent Care Expenses
**NOTE: This credit is for Maryland residents only. The program will automatically calculate the child and dependent care credit for you if you claimed the credit on your Federal Return within the program. You may also be entitled to a refundable credit.
Quality Teacher Incentive Credit
Qualified teachers may claim a nonrefundable credit on the state return for required graduate-level courses taken to maintain certification.
Credit for Aquaculture Oyster Floats
Taxpayers that purchase a new Aquaculture Oyster Float during the tax year may qualify to claim up to a $500 credit on their tax return. The credit is nonrefundable and cannot be carried forward.
Long-term Care Insurance Credit
Taxpayers that purchase long-term care insurance for themselves or certain members of their family may qualify for a tax credit.
The following credits require documentation to be attached to the return or emailed to the state. If the required documentation is not present with the return, the credit may be disallowed. The taxpayer will need to forward the signature document and requested certification forms, either by email to firstname.lastname@example.org or by mail to the P. O. Box at: Revenue Administration Division, Electronic Processing Section, P O Box 2364, Annapolis, MD 21404.
- Credit for Preservation and Conservation Easements
If you donated an easement to the Maryland Environmental Trust or The Maryland Agricultural Land Preservation Foundation, you may be eligible for a credit on your return. The credit is equal to the lesser of the fair market value of the property reduced by the easement payments received or the tax liability on the return.
- Community Investment Tax Credit
Program supports Nonprofit organizations by attracting contributions in exchange for tax credits.
- Endow Maryland Tax Credit
Offers tax credits for donations of $500 or more to permanent, endowed funds at qualified community foundations.
- Preceptors in Areas with Health Care Workforce Shortages Tax Credit
Individuals that work in certain areas of the state with a Health Care Workforce shortage may qualify for a credit.
- Independent Living Tax Credit You may be able to claim a credit towards your state income tax equal to 50% of the incurred expenses to make your home more accessible.
- Endowments of Maryland Historically Black Colleges and Universities Tax Credit Taxpayers making donation to a qualified permanent endowment fund held at an eligible institution of higher education (Bowie State University, Coppin State University, Morgan State University, or University of Maryland Eastern Shore), may be eligible for a credit of 25% of the amount of donation. You must apply for the credit on the Maryland website and receive a credit certificate
- Student Loan Debt Relief Tax Credit
**NOTE: This credit is only available for Maryland residents. Individuals that have at least $20,000 in undergraduate or graduate student loan (or both) debt may qualify for the credit.
- IRC 1341 Repayment Credit
Repayment for amount reported as income in prior year in excess of $3,000.
- Catalytic Revitalization Projects and Historic Revitalization Tax Credit If you are an individual, business entity, or nonprofit organization, you may claim a tax credit in an amount equal to 20% of the amount stated in the final tax credit certificate issued by the Secretary of this subtitle for 5 consecutive taxable years beginning with the taxable years in which the Catalytic Revitalization Projects is completed.
- Flow-through Nonresident PTE Tax
Individuals that are a beneficiary of a trust, partner or member of a pass-through entity that paid Nonresident PTE tax may qualify for a credit.
- PTE Tax paid on resident members distributive or pro rata shares of income
If you are a Maryland resident and you are the beneficiary of a trust or a Qualified Subchapter S Trust which elected to pay the tax imposed with respect to resident members’ distributive or pro rata shares, you may be entitled to a credit for your share of that tax.
For more information about Maryland's Business Credits, please click here.