Businesses or individuals who contribute to approved Community Investment Programs may be eligible for a credit against the Maryland State income tax. Contributions must be made to a nonprofit organization approved by the Department of Housing and Community Development (DHCD). The taxpayer must apply to and receive approval by the DHCD for each contribution for which a credit is claimed. The credit is limited to 50% of the approved contributions (including real property) not to exceed $250,000.
Businesses and PTE members who are eligible to claim the Community Investment Tax Credit must claim the credit on the Form 500CR. Individuals who are eligible to claim the Community Investment Tax Credit and who are not PTE members may claim this credit on the Form 502CR instead of the Form 500CR. However, an individual may not claim the credit on both the Form 502CR and the Form 500CR.
Individuals who anticipate having a carryover of the Community Investment Tax Credit are advised to file using Form 500CR instead of Form 502CR.Individuals who have an existing carryover on Part CC of their 2018 Form 500CR may elect to use Form 502CR, if their excess carryover credit is attributable only to the Community Investment Tax Credit.