§ 10-702. Tax credit for business entities in enterprise zones
West's Annotated Code of MarylandTax-GeneralEffective: June 1, 2022
Effective: June 1, 2022
MD Code, Tax - General, § 10-702
§ 10-702. Tax credit for business entities in enterprise zones
(i) was both unemployed for at least 30 consecutive days and qualified to participate in training activities for the economically disadvantaged under the federal Workforce Innovation and Opportunity Act1 or its successor; or
(b)(1) Any business entity that is located in an enterprise zone and satisfies the requirements of § 5-707 of the Economic Development Article may claim a credit only against the State income tax for the wages specified in subsections (c) and (d) of this section that are paid in the taxable year for which the entity claims the credit.
(2) A business entity that is located in a focus area and satisfies the requirements of § 5-707 of the Economic Development Article may claim a credit only against the State income tax for the wages specified in subsection (e) of this section that are paid to a focus area employee in the taxable year for which the entity claims the credit.
(c) If a business entity does not claim an enhanced tax credit under subsection (e) of this section for a focus area employee, for the taxable year in which a business entity satisfies the requirements of § 5-707 or § 5-1406 of the Economic Development Article, a credit is allowed that equals:
(d)(1) If a business entity does not claim an enhanced tax credit under subsection (e) of this section for a focus area employee, for each taxable year after the taxable year described in subsection (c) of this section, while the area is designated an enterprise zone, a credit is allowed that equals:
(2) A business entity that hires a qualified employee to replace another qualified employee for whom the business entity received a credit under subsection (c)(1) of this section and paragraph (1)(ii) of this subsection in the immediately preceding taxable year may treat the new qualified employee as the replacement for the other qualified employee to determine any credit that may be available to the business entity under paragraph (1)(ii) or (iii) of this subsection.
(e)(1) For the taxable year in which a business entity satisfies the requirements of §§ 5-706 and 5-707 or § 5-1406 of the Economic Development Article, a credit is allowed that equals:
(3) A business entity that hires a focus area employee to replace another focus area employee for whom the business entity received a credit under paragraph (1)(i) of this subsection and paragraph (2)(ii) of this subsection in the immediately preceding taxable year may treat the focus area employee as the replacement for the other focus area employee to determine any credit that may be available to the business entity under paragraph (2)(ii) or (iii) of this subsection.
(f) If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, a business entity may apply the excess as a credit against the State income tax for succeeding taxable years until the earlier of:
Credits
Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1988, c. 6, § 8; Acts 1988, c. 110, § 1; Acts 1989, c. 5, § 1; Acts 1989, c. 178, § 2, eff. July 1, 1989; Acts 1995, c. 3, §§ 1, 22, eff. March 7, 1995; Acts 1995, c. 120, § 19, eff. July 1, 1995; Acts 1996, c. 626, § 1, eff. July 1, 1996; Acts 1997, c. 16, § 1, eff. April 8, 1997; Acts 1999, c. 467, § 1, eff. Oct. 1, 1999; Acts 2001, c. 305, § 1, eff. July 1, 2001; Acts 2001, c. 315, § 2, eff. July 1, 2002; Acts 2002, c. 19, § 1, eff. April 9, 2002; Acts 2008, c. 307, § 1, eff. Oct. 1, 2008; Acts 2014, c. 530, § 1, eff. June 1, 2014; Acts 2014, c. 531, § 1, eff. June 1, 2014; Acts 2015, c. 22, § 1, eff. April 14, 2015; Acts 2016, c. 8, § 1, eff. March 14, 2016; Acts 2016, c. 344, § 1, eff. July 1, 2016; Acts 2019, c. 8, § 5; Acts 2022, c. 732, § 2, eff. June 1, 2022.
Formerly Art. 81, § 291A.
Footnotes
Pub.L. 113-128, July 22, 2014, 128 Stat. 1425.
MD Code, Tax - General, § 10-702, MD TAX GENERAL § 10-702
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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