Maryland offers several tax credits that may reduce the amount of tax owed or increase a refund. Some credits are automatically calculated, while others require additional information, worksheets, certifications, or supporting documentation.
Program Entry
To access this section, navigate to:
Maryland → Credits
Credit for Taxes Paid to Another State
This credit helps prevent the same income from being taxed by both Maryland and another state.
Who May Qualify?
You may qualify if:
- You are a Maryland resident, and
- You paid income tax to another state on income that is also taxed by Maryland.
Information Required
If the credit is not calculated automatically, you may need to enter:
- The other state where the income was taxed.
- Total income taxable to the other state.
- Income tax paid to the other state.
⚠️ Do not enter state withholding from Form W-2 or Form 1099. Enter the actual tax liability paid to the other state.
Quality Teacher Incentive Credit
This credit may be available to eligible teachers who meet Maryland's qualification requirements.
Eligibility and documentation requirements are determined by Maryland law and applicable certification programs.
Documentation Requirement
⚠️ The preparer or taxpayer will need to attach a PDF or forward the signature document and requested certification forms, either by email to cert@comp.state.md.us or by mail to:
Revenue Administration Division
Electronic Processing Section
P.O. Box 2364
Annapolis, MD 21404
Long-Term Care Insurance Credit
Maryland provides a credit for eligible long-term care insurance premiums.
This credit is intended to encourage taxpayers to obtain qualifying long-term care coverage.
Preservation and Conservation Easement Credit
This credit may be available for qualifying conservation easement donations made to preserve land, natural resources, or historic properties.
Supporting documentation is generally required.
Community Investment Tax Credit
The Community Investment Tax Credit (CITC) is available to taxpayers who make approved contributions to qualified community organizations.
Information That May Be Required
- Excess CITC carryforward from a prior year.
- Amount of approved contributions.
- Certification documentation.
Supporting Documentation
Taxpayers claiming this credit may be required to attach a certification form or submit supporting documentation to the Maryland Comptroller's Office.
⚠️ This credit is limited to individual taxpayers who have elected not to claim this credit on Form 500CR. If you have any excess CITC carryover from Form 500CR attributable to any credit other than the Community Investment Tax Credit (CITC), you are not eligible to claim the CITC on Form 502CR.
Venison Donation Tax Credit
This credit may be available to hunters who donate venison to approved programs that distribute food to individuals in need.
Documentation should be retained to support the credit claimed.
Endow Maryland Tax Credit
This credit is designed to encourage contributions to qualified permanent charitable endowment funds in Maryland.
Eligible contributions may qualify for a Maryland tax credit.
Documentation Requirement 📄
⚠️ The preparer or taxpayer will need to attach a PDF or forward the signature document and requested certification forms, either by email to cert@comp.state.md.us or by mail to:
Revenue Administration Division
Electronic Processing Section
P.O. Box 2364
Annapolis, MD 21404
Preceptors in Areas with Health Care Workforce Shortages Tax Credit
This credit may be available to qualifying health care professionals who serve as preceptors in designated workforce shortage areas.
Supporting certifications may be required.
Documentation Requirement
⚠️ The preparer or taxpayer will need to attach a PDF or forward the signature document and requested certification forms, either by email to cert@comp.state.md.us or by mail to:
Revenue Administration Division
Electronic Processing Section
P.O. Box 2364
Annapolis, MD 21404
Independent Living Tax Credit
This credit encourages home modifications and improvements that help individuals maintain independent living arrangements.
Eligibility requirements apply.
Documentation Requirement
⚠️ The preparer or taxpayer will need to attach a PDF or forward the signature document and requested certification forms, either by email to cert@comp.state.md.us or by mail to:
Revenue Administration Division
Electronic Processing Section
P.O. Box 2364
Annapolis, MD 21404
Endowments of Maryland Historically Black Colleges and Universities Credit
Maryland provides a credit for qualifying contributions made to endowments supporting Maryland's Historically Black Colleges and Universities (HBCUs).
Documentation Requirement
⚠️ The preparer or taxpayer will need to attach a PDF or forward the signature document and requested certification forms, either by email to cert@comp.state.md.us or by mail to:
Revenue Administration Division
Electronic Processing Section
P.O. Box 2364
Annapolis, MD 21404
Student Loan Debt Relief Tax Credit
This credit may be available to qualifying taxpayers who have incurred eligible student loan debt.
Taxpayers claiming this credit should retain all approval notices and supporting documentation.
Documentation Requirement
⚠️ The preparer or taxpayer will need to attach a PDF or forward the signature document and requested certification forms, either by email to cert@comp.state.md.us or by mail to:
Revenue Administration Division
Electronic Processing Section
P.O. Box 2364
Annapolis, MD 21404
IRC Section 1341 Repayment Credit
This credit may apply if income reported and taxed in a prior year was repaid during the current tax year under the federal claim of right provisions contained in IRC Section 1341.
Refer to the Maryland instructions and Administrative Release 40 when determining eligibility.
Flow-Through Nonresident PTE Tax
This credit may be available when pass-through entities have paid tax on behalf of nonresident owners.
Examples may include:
- Partnerships
- S Corporations
- Certain LLCs
Catalytic Revitalization Projects and Historic Revitalization Credit
Maryland offers credits for qualifying revitalization and redevelopment projects involving historic properties and community development initiatives.
Supporting certifications may be required.
PTE Tax Paid on Resident Member's Distributive or Pro Rata Shares of Income
If a Maryland pass-through entity paid tax on behalf of a resident member, the resident may be entitled to a corresponding credit.
Enter the amount reported by the pass-through entity.
Recapture of Student Loan Debt Relief Tax Credit for 2020
Taxpayers may need to complete this section if Maryland requires repayment (recapture) of all or part of a previously claimed Student Loan Debt Relief Tax Credit.
Only taxpayers affected by Maryland recapture rules should enter an amount here.
Business Tax Credits
Maryland offers numerous business tax credits through Form 500CR.
These credits generally apply to business owners, investors, employers, or taxpayers involved in qualifying economic development activities.
Many business credits require:
- Certification forms
- Approval letters
- Credit certificates
- Supporting documentation
Documentation Requirements
Several Maryland credits require supporting documentation.
Depending on the credit claimed, you may need to provide:
- Certification forms
- Approval letters
- Credit certificates
- Contribution records
- Supporting schedules
The Maryland Comptroller may request additional information to verify eligibility.
Important Notes
- Not all taxpayers will qualify for every credit listed in this section.
- Some credits are automatically calculated while others require manual entry.
- Many Maryland credits require supporting documentation or certification.
- Keep copies of all records used to claim a credit.
- Incorrect credit entries may delay processing or result in adjustments to the return.
Additional Information
For more information about Maryland's Business Credits, refer to the Comptroller of Maryland's website here.