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Businesses located in Maryland that create new positions and establish or expand business facilities in the state may be entitled to a tax credit. To be eligible for the tax credit, businesses must first have been granted a property tax credit by a local government of Maryland for creating the new jobs.
It is applied against the employer's payroll tax liability, effectively reducing the amount of tax owed to the state. This financial relief helps businesses maintain their workforce, which is critical for business continuity and eventual recovery.
The Maryland Form 511 An Electing PTE Income Tax Return must be filed electronically if the pass-through entity has generated a business tax credit from Form 500CR or a Heritage Structure Rehabilitation Tax Credit from Form 502S to pass on to its members. taxhelp@marylandtaxes.gov.
Businesses that have qualified R&D expenditures in Maryland may qualify for the R&D Tax Credit. The tax credit remains in effect until June 30, 2027, subject to extension by the General Assembly.
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