An individual may claim a credit against the income tax for a taxable year for income tax withheld and estimated tax payments made for the year under Subtitle 9 of this title.

A member of a pass–through entity may claim a credit against the income tax for a taxable year in the amount of tax paid by a pass–through entity under § 10–102.1 of this title that is attributable to the member’s share of the pass–through entity’s taxable income, as defined in § 10–102.1(a)(8) of this title.

In this section the following words have the meanings indicated. “Business entity” means: a person conducting or operating a trade or business; or an organization that is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code. “Business entity” does not include a person owning, operating, developing, constructing, or rehabilitating property intended for use primarily as single or multifamily residential property located within the enterprise zone. “Economically disadvantaged individual” means an individual who is certified by provisions that the Maryland Department of Labor adopts as an individual who, before becoming employed by a business entity in an enterprise zone: 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 Act or its successor; or in the absence of an applicable federal act, met the criteria for an economically disadvantaged individual that the Secretary of Labor sets. “Enterprise zone” has the meaning stated in § 5–701 of the Economic Development Article. “Enterprise zone” includes a Regional Institution Strategic Enterprise zone established under Title 10, Subtitle 1 of the Economic Development Article. “Focus area” has the meaning stated in § 5–701 of the Economic Development Article. “Focus area employee” means an individual who: is a new employee or an employee rehired after being laid off for more than 1 year by a business entity; is employed by a business entity at least 35 hours each week for at least 12 months before or during the taxable year for which the entity claims a credit; spends at least 50% of the hours under item (ii) of this paragraph either in the focus area or on activities of the business entity resulting directly from its location in the focus area; is hired by the business entity after the later of: the date on which the focus area is designated; or the date on which the business entity located in the focus area; and earns at least 120% of the State minimum wage. “Qualified employee” means an individual who: is hired to fill a newly created position or, if the individual is an economically disadvantaged individual, is hired to fill a position previously held by another economically disadvantaged individual; is employed by a business entity at least 35 hours each week for at least 6 months before or during the taxable year for which the entity claims a credit; spends at least 50% of the hours under item (ii) of this paragraph, either in the enterprise zone or on activities of the business entity resulting directly from its location in the enterprise zone; earns at least 120% of the State minimum wage; and is hired by the business entity after the later of: the date on which the enterprise zone is designated; or the date on which the business entity locates in the enterprise zone. 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. 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. An organization that is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code may apply the credit under this section as a credit against income tax due on unrelated business taxable income as provided under §§ 10–304 and 10–812 of this title. 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 § 10–142 of the Economic Development Article, a credit is allowed that equals: up to $3,000 of the wages paid to each qualified employee who: is an economically disadvantaged individual; and is not hired to replace an individual whom the business entity employed in that or any of the 3 preceding taxable years; and up to $1,000 of the wages paid to each qualified employee who: is not an economically disadvantaged individual; and is not hired to replace an individual whom the business entity employed in that or any of the 3 preceding taxable years. 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: up to $3,000 of the wages paid to each qualified employee who: is an economically disadvantaged individual; became a qualified employee during the taxable year to which the credit applies; and is not hired to replace an individual whom the business entity employed in that or any of the 3 preceding taxable years; up to $2,000 of the wages paid to each qualified employee who is an economically disadvantaged individual, if the business entity received a credit under subsection (c)(1) of this section for the qualified employee in the immediately preceding taxable year; and up to $1,000 of the wages paid to each qualified employee who is not hired to replace an individual whom the business entity employed in that or any of the 3 preceding taxable years if the qualified employee: is an economically disadvantaged individual for whom the business entity received a credit under subsection (c)(1) of this section or item (i) of this paragraph and a credit under item (ii) of this paragraph in the 2 immediately preceding taxable years; or is not an economically disadvantaged individual but became a qualified employee during the taxable year to which the credit applies. 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. For the taxable year in which a business entity satisfies the requirements of §§ 5–706 and 5–707 or § 10–142 of the Economic Development Article, a credit is allowed that equals: up to $4,500 of the wages paid to each focus area employee who: is an economically disadvantaged individual; and is not hired to replace an individual whom the business entity employed in that year or any of the 3 preceding taxable years; and up to $1,500 of the wages paid to each focus area employee who: is not an economically disadvantaged individual; and is not hired to replace an individual whom the business entity employed in that year or any of the 3 preceding taxable years. For each taxable year after the taxable year described in paragraph (1) of this subsection, while the area is designated a focus area, a credit is allowed that equals: up to $4,500 of the wages paid to each focus area employee who: is an economically disadvantaged individual; became a focus area employee during the taxable year to which the credit applies; and is not hired to replace an individual whom the business entity employed in that year or any of the 3 preceding taxable years; up to $3,000 of the wages paid to each focus area employee who is an economically disadvantaged individual, if the business entity received a credit under paragraph (1)(i) of this subsection for the focus area employee in the immediately preceding taxable year; and up to $1,500 of the wages paid to each focus area employee who is not hired to replace an individual whom the business entity employed in that year or any of the 3 preceding taxable years if the focus area employee: is an economically disadvantaged individual for whom the business entity received a credit under item (ii) of this paragraph in the 2 immediately preceding taxable years and under: paragraph (1)(i) of this subsection; or item (i) of this paragraph; or is not an economically disadvantaged individual but became a focus area employee during the taxable year to which the credit applies. 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. 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: the full amount of the excess is used; or the expiration of the 5th taxable year from the date on which the business entity hired the qualified employee to whom the credit first applies. If a credit is claimed under this section, the claimant must make the addition required in § 10–205, § 10–206, or § 10–306 of this title.

In this section, “member” and “pass–through entity” have the meanings stated in § 10–102.1 of this title. Except as provided in subsection (c) of this section, a resident may claim a credit against the income tax for a taxable year in the amount determined under subsection (d) of this section for State tax on income paid to another state for the year. A credit under subsection (b) of this section is not allowed to: a resident other than a fiduciary, if the laws of the other state allow the resident a credit for State income tax paid to this State; a resident fiduciary, if the fiduciary claims, and the other state allows, a credit for State income tax paid to this State; a resident for less than the full taxable year for tax on income that is paid to another state during residency in that state; or a nonresident. Except as provided in paragraph (2) of this subsection and subject to subsection (e) of this section, the credit allowed a resident under subsection (b) of this section is the lesser of: the amount of allowable tax on income that the resident paid to another state; or an amount that does not reduce the income tax to an amount less than would be payable if the income subjected to tax in the other state were disregarded. If the credit allowed a resident under subsection (b) of this section is based on tax that a pass–through entity pays to another state, the credit allowable to a member of the pass–through entity: may not exceed that member’s pro rata share of the tax; and will be allowed for another state’s income taxes or taxes based on income. The amount of the credit allowed under subsection (b) of this section to be applied against the State income tax is equal to the amount that would be calculated under subsection (d) of this section using the State income tax rate as the only applicable rate. The amount of the credit allowed under subsection (b) of this section to be applied against the county income tax is equal to the amount calculated under subsection (d) of this section less the amount calculated under paragraph (1) of this subsection.

In this section, “installment sale” has the meaning stated in § 453(b) of the Internal Revenue Code. A credit against the State income tax in the amount determined under subsection (c) of this section may be claimed by a resident who recognizes income for the current taxable year for federal income tax purposes from an installment sale of property located in a state other than Maryland if: the disposition of the property occurred in an earlier taxable year; and the taxpayer paid state tax on income for the earlier taxable year to the state where the property was located on the income that for federal income tax purposes is recognized in the current taxable year. The amount of the credit allowed under this section is equal to the income recognized for federal income tax purposes for the current year on which state income tax was paid to another state in an earlier year, as described in subsection (b)(2) of this section, multiplied by the lesser of: the rate of tax imposed by the other state on the income described in subsection (b)(2) of this section; or the maximum rate of Maryland State income tax.

In this section the following words have the meanings indicated. “Applicable county income tax rate” means: if a county imposes a marginal income tax rate, the county’s lowest marginal income tax rate for the taxable year; or if a county imposes one or more flat income tax rates, the county income tax rate for the taxable year that is applicable to the taxpayer’s income level and filing status as established by the county. “Taxpayer” means: an individual filing an income tax return; or a married couple filing a joint income tax return. A resident who is a taxpayer may claim a credit against the State income tax for a taxable year in the amount determined under subsection (c) of this section for earned income. A resident who is a taxpayer may claim a credit against the county income tax for a taxable year in the amount determined under subsection (d) of this section for earned income. Except as provided in paragraphs (2) and (3) of this subsection and subject to subsection (e) of this section, the credit allowed against the State income tax under subsection (b)(1) of this section is the lesser of: 50% of the earned income credit allowable for the taxable year under § 32 of the Internal Revenue Code or that would have been allowable but for the limitation under § 32(m) of the Internal Revenue Code; or the State income tax for the taxable year. Subject to subparagraph (iii) of this paragraph and subsection (e) of this section, a resident may claim a refund in the amount, if any, by which the applicable percentage specified in subparagraph (ii) of this paragraph of the earned income credit allowable for the taxable year under § 32 of the Internal Revenue Code exceeds the State income tax for the taxable year. Subject to subparagraph (iii) of this paragraph, the applicable percentage of the earned income credit allowable under § 32 of the Internal Revenue Code to be used for purposes of determining the refund provided under this paragraph is: 25% for a taxable year beginning after December 31, 2013, but before January 1, 2015; 5% for a taxable year beginning after December 31, 2014, but before January 1, 2016; 26% for a taxable year beginning after December 31, 2015, but before January 1, 2017; 27% for a taxable year beginning after December 31, 2016, but before January 1, 2018; 28% for a taxable year beginning after December 31, 2017, but before January 1, 2020; and 45% for a taxable year beginning after December 31, 2019. For purposes of determining the refund provided under this paragraph, the earned income credit allowable under § 32 of the Internal Revenue Code is calculated without regard to the limitation under § 32(m) of the Internal Revenue Code. For purposes of this section for an individual without a qualifying child, the credit allowable for a taxable year under § 32 of the Internal Revenue Code is calculated without regard to: the minimum age requirement under § 32(c)(1)(A)(ii)(II) of the Internal Revenue Code; or the limitation under § 32(m) of the Internal Revenue Code. Subject to subparagraph (iii) of this paragraph, the credit allowed against the State income tax under subsection (b)(1) of this section for an individual without a qualifying child is equal to 100% of the earned income credit allowable for a taxable year under § 32 of the Internal Revenue Code. For a taxable year beginning after December 31, 2019, but before January 1, 2023, the tax credit allowed under this paragraph may not exceed $530 for a taxable year. If the tax credit allowed under this paragraph in any taxable year exceeds the total tax otherwise payable by the individual without a qualifying child for that taxable year, the individual may claim a refund in the amount of the excess. Except as provided in paragraph (2) of this subsection and subject to subsection (e) of this section, the credit allowed against the county income tax under subsection (b)(2) of this section is the lesser of: the earned income credit allowable for the taxable year under § 32 of the Internal Revenue Code or that would have been allowable but for the limitation under § 32(m) of the Internal Revenue Code multiplied by 10 times the applicable county income tax rate for the taxable year; or the county income tax for the taxable year. A county may provide, by law, for a refundable county earned income credit as provided in this paragraph. If a county provides for a refundable county earned income credit under this paragraph, on or before July 1 prior to the beginning of the first taxable year for which it is applicable, the county shall give the Comptroller notice of the refundable county earned income credit. If a county provides for a refundable county earned income credit under this paragraph, a resident may claim a refund of the amount, if any, by which the product of multiplying the credit allowable for the taxable year under § 32 of the Internal Revenue Code or that would have been allowable but for the limitation under § 32(m) of the Internal Revenue Code by 5 times the applicable county income tax rate for the taxable year exceeds the county income tax for the taxable year. The amount of any refunds payable under a refundable county earned income credit operates to reduce the income tax revenue from individuals attributable to the county income tax for that county. Subject to paragraph (2) of this subsection, for an individual who is a resident of the State for only a part of the year, the amount of the credit or refund allowed under this section shall be determined based on the part of the earned income credit allowable for the taxable year under § 32 of the Internal Revenue Code that is attributable to Maryland, determined by multiplying the federal earned income credit by a fraction: the numerator of which is the Maryland adjusted gross income of the individual; and the denominator of which is the federal adjusted gross income of the individual. For purposes of determining the amount of the credit or refund under paragraph (1) of this subsection, the part of the earned income credit allowable for the taxable year under § 32 of the Internal Revenue Code is calculated without regard to the limitation under § 32(m) of the Internal Revenue Code.

In this section the following words have the meanings indicated. “Cogenerator” means a qualifying cogenerator or qualifying small power producer as determined by the Federal Energy Regulatory Commission under the Public Utility Regulatory Policies Act of 1978. “Electricity supplier” has the meaning stated in § 1–101 of the Public Utilities Article. This section does not apply to: a cogenerator or electricity supplier that is subject to the public service company franchise tax; or an electricity supplier that, before July 1, 1999, was not an electric company as defined in § 1–101 of the Public Utilities Article as in effect on June 30, 1999, unless the electricity supplier is an affiliate of such an electric company. Subject to the limitations in § 8–406(b)(2) of this article, a cogenerator or electricity supplier may claim a credit against the State income tax in the amount of $3 for each ton of Maryland–mined coal that the cogenerator or electricity supplier purchased in the taxable year. A cogenerator or electricity supplier may only apply the credit against the State income tax for the taxable year in which the credit was earned. The amount of the credit may not exceed the State income tax for that taxable year. The total amount of credits approved under this section shall be subject to the limitations in § 8–406(b)(2)(iv), (v), and (vi) of this article. A cogenerator or electricity supplier shall submit an application in accordance with § 8–406(b)(2)(iii) of this article in order to claim the credit available under this section.

An individual or a corporation may claim a credit against the income tax for wages paid to qualified employees as provided under Title 6, Subtitle 3 of the Economic Development Article.

An individual or corporation may claim a credit against the State income tax for a certified rehabilitation as provided under § 5A-303 of the State Finance and Procurement Article. An individual or corporation that is not otherwise required to file an income tax return, including a corporation exempt from income tax under § 501(c)(3) of the Internal Revenue Code: may file a return to claim a refund of the credit under this section; and shall file a return if the individual or corporation is subject to the recapture of the credit under this section as provided under § 5A-303 of the State Finance and Procurement Article.

An individual or a corporation may claim a credit against the State income tax for neighborhood and community assistance contributions as provided under § 6-404 of the Housing and Community Development Article.

An individual or a corporation may claim a credit against the income tax for: wages paid to a qualified employee with a disability; and child care provided or paid for by a business entity for the children of a qualified employee with a disability as provided under § 21–309 of the Education Article; or transportation provided or paid for by the business entity for a qualified employee with a disability as provided under § 21–309 of the Education Article. An organization that is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code may apply the credit under this section: as a credit against income tax due on unrelated business taxable income as provided under §§ 10–304 and 10–812 of this title; or as a credit for the payment to the Comptroller of taxes that the organization: is required to withhold from the wages of employees under § 10–908 of this title; and is required to pay to the Comptroller under § 10–906(a) of this title. If the credit allowed under this subsection in any taxable year exceeds the sum of the State income tax otherwise payable by the organization for that taxable year and the taxes that the organization has withheld from the wages of employees and is required to pay to the Comptroller under § 10–906(a) of this title for the taxable year, the organization may apply the excess as a credit under paragraph (1)(i) or (ii) of this subsection in succeeding taxable years for the carryforward period provided in § 21–309 of the Education Article. The Comptroller shall adopt regulations to provide procedures for claiming and applying credits authorized under paragraph (1)(ii) of this subsection.

An individual or a corporation may claim a State tax credit against the income tax as provided under § 9-230 of the Tax - Property Article.

To be allowed a credit under this subtitle, a person shall submit to the Comptroller satisfactory evidence that the person is entitled to the credit.

Except as otherwise provided in this section, a credit allowed under this subtitle is allowed against the State income tax only. A credit under § 10–701 of this subtitle is allowed against the total county and State income taxes. A credit allowed under § 10–704(b)(1) or § 10–709(b)(1) of this subtitle is allowed against the State income tax only. A credit allowed under § 10–704(b)(2) or § 10–709(b)(2) of this subtitle is allowed against the county income tax only.

An individual may claim a credit against the State income tax for a taxable year in the amount specified in subsection (b) of this section for property tax paid in that taxable year for owner-occupied, residential real property that is granted a property tax credit under § 9-317(e), § 9-318(d), or § 9-326 of the Tax - Property Article. The credit shall equal the amount of the property tax credit granted for property tax paid under § 9-317(e), § 9-318(d), or § 9-326 of the Tax - Property Article. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, calculated before application of the credits under this section and §§ 10-701 and 10-701.1 of this subtitle, but after application of the other credits allowable under this subtitle, the excess of the credit shall be refunded.

In this section the following words have the meanings indicated. “Applicable poverty income level” means the amount specified in the poverty income standard that corresponds to the number of exemptions which the individual is allowed and claims under § 10–211(b)(1) of this title. “Eligible low income taxpayer” means an individual, or an individual and the individual’s spouse if they file a joint income tax return: whose federal adjusted gross income as modified under §§ 10–204 through 10–206 of this title does not exceed the applicable poverty income level; whose earned income as defined under § 32(c)(2) of the Internal Revenue Code does not exceed the applicable poverty income level; who is not claimed as an exemption on another individual’s tax return under § 10–211 of this title; and for whom the credit allowed under § 10–704(a)(1) of this subtitle is less than the State income tax. “Poverty income standard” means the most recent poverty income guideline published by the United States Department of Health and Human Services, available as of July 1 of the taxable year. An eligible low income taxpayer may claim a credit against the State income tax for a taxable year in the amount determined under subsection (c) of this section. An eligible low income taxpayer may claim a credit against the county income tax for a taxable year in the amount determined under subsection (d) of this section. Except as provided in subsection (e) of this section, the credit allowed against the State income tax under subsection (b)(1) of this section equals the lesser of: the State income tax determined after subtracting the credit allowed under § 10–704(b)(1) of this subtitle; or an amount equal to 5% of the eligible low income taxpayer’s earned income, as defined under § 32(c)(2) of the Internal Revenue Code. Except as provided in subsection (e) of this section, the credit allowed against the county income tax under subsection (b)(2) of this section equals the lesser of: the county income tax determined after subtracting the credit allowed under § 10–704(d) of this subtitle; or an amount equal to the county income tax rate multiplied times the eligible low income taxpayer’s earned income, as defined under § 32(c)(2) of the Internal Revenue Code. Of the amount determined under subsection (c) or subsection (d) of this section, an individual who is a nonresident or is a resident of the State for only a part of the year is allowed only a fraction: the numerator of which is the individual’s Maryland adjusted gross income; and the denominator of which is the individual’s federal adjusted gross income.

In this section, “long-term care insurance” has the meaning stated in § 18-101 of the Insurance Article. Subject to the limitation under paragraph (2) of this subsection, an employer may claim a tax credit in an amount equal to 5% of the costs incurred by the employer during the taxable year to provide long-term care insurance as part of an employee benefit package. The credit allowed under this section may not exceed the lesser of: $5,000; or $100 for each employee in the State covered by long-term care insurance provided under the employee benefit package. An individual or corporation may apply the credit under subsection (b) of this section against the State income tax. An organization that is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code may apply the credit under this section against State income tax due on unrelated business taxable income as provided under §§ 10-304 and 10-812 of this title. If the employer is subject to more than one tax against which the credit allowed under this section may be applied, the same credit may not be applied more than once against different taxes. If the credit allowed under this subsection in any taxable year exceeds the total tax otherwise payable by the employer for that taxable year, the employer may apply the excess as a credit for succeeding taxable years until the earlier of: the full amount of the excess is used; or the expiration of the 5th taxable year after the taxable year in which the costs to provide long-term care insurance as part of an employee benefit package were incurred.

An individual or corporation may claim a credit against the State income tax for One Maryland project costs and start–up costs as provided under Title 6, Subtitle 4 of the Economic Development Article.

An individual or corporation may claim a credit against the State income tax for the cost of providing commuter benefits to the business entity’s employees as provided under § 2-901 of the Environment Article. An organization that is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code may apply the credit under this section as a credit for the payment to the Comptroller of taxes that the organization: is required to withhold from the wages of employees under § 10-908 of this title; and is required to pay to the Comptroller under § 10-906(a) of this title.

In this section the following words have the meanings indicated. “Federal child and dependent care credit” means the child and dependent care credit properly claimed by an individual for the taxable year under § 21 of the Internal Revenue Code. “Qualifying individual” means a qualifying individual within the meaning of § 21(b) of the Internal Revenue Code. “Taxpayer” means: an individual filing an income tax return; or a married couple filing a joint income tax return. A resident who is a taxpayer may claim a credit against the State income tax as provided in this section for expenses paid by the taxpayer during a taxable year for the care of a qualifying individual if the federal adjusted gross income of the taxpayer for the taxable year does not exceed: $92,000, in the case of an individual; or $143,000, in the case of a married couple filing a joint income tax return. Subject to subsection (d) of this section and except as provided in subsection (e) of this section, the credit allowed under subsection (b) of this section equals the lesser of: 32% of the federal child and dependent care credit; or the State income tax for the taxable year. If the federal adjusted gross income of a taxpayer filing an individual return for the taxable year exceeds $30,000, the credit otherwise allowed under this section shall be reduced by 1% for each $2,000 or fraction of $2,000 by which the individual’s federal adjusted gross income exceeds $30,000. In the case of an individual who is a member of a married couple filing a joint income tax return, if the individual’s federal adjusted gross income for the taxable year exceeds $50,000, the credit otherwise allowed under this section shall be reduced by 1% for each $3,000 or fraction of $3,000 by which the individual’s federal adjusted gross income exceeds $50,000. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, the taxpayer may claim a refund in the amount of the excess if the taxpayer’s federal adjusted gross income does not exceed: $50,000 in the case of an individual; or $75,000 in the case of a married couple filing a joint income tax return. For each taxable year beginning after December 31, 2019, the maximum income thresholds under subsection (b) of this section and the maximum income thresholds under subsection (e) of this section shall be increased by an amount equal to the product of the maximum income thresholds and the cost–of–living adjustment specified in this subsection. For purposes of this subsection, the cost–of–living adjustment is the cost–of–living adjustment within the meaning of § 1(f)(3) of the Internal Revenue Code for the calendar year in which a taxable year begins, as determined by the Comptroller, by substituting “calendar year 2018” for “calendar year 2016” in § 1(f)(3)(A) of the Internal Revenue Code. If any increase determined under paragraph (1) of this subsection is not a multiple of $50, the increase shall be rounded down to the next lowest multiple of $50. The credit allowed under this section does not affect the treatment under this title of any deduction or exclusion allowed under this title or allowed for federal income tax purposes for expenses paid by the taxpayer for the care of a qualifying individual.

An individual who is a classroom teacher or a teacher at a State or local correctional facility or a juvenile facility listed in § 9–226 of the Human Services Article and who holds a standard professional certificate or an advanced professional certificate may claim a credit against the State income tax for up to $1,500 of tuition paid by the individual during the taxable year for graduate level courses required to maintain certification if the individual: successfully completes the courses with a grade of B or better; is employed by a county board of education, a State or local correctional facility, or a juvenile facility listed in § 9–226 of the Human Services Article; teaches in a public school, a State or local correctional facility, or a juvenile facility listed in § 9–226 of the Human Services Article and receives a satisfactory performance evaluation for that teaching; and has not been reimbursed by the State or a county for the tuition paid. If a county, the State or local correctional facility, or a juvenile facility listed in § 9–226 of the Human Services Article partially reimburses an individual for tuition paid, the individual may claim a tax credit allowed under this section for the balance of the tuition not paid by the county or the State. The credit allowed under this section may not exceed the State income tax for that taxable year, calculated before the application of the credits allowed under this section and §§ 10–701 and 10–701.1 of this subtitle but after the application of the other credits allowable under this subtitle. The unused amount of the credit for any taxable year may not be carried over to any other taxable year.

In this section, “eligible long–term care premiums” means eligible long–term care premiums within the meaning of § 213(d)(10) of the Internal Revenue Code for a long–term care insurance contract covering an individual who is a Maryland resident. An individual may claim a credit against the State income tax in an amount equal to 100% of the eligible long–term care premiums paid by the individual during the taxable year for long–term care insurance covering the individual or the individual’s spouse, parent, stepparent, child, or stepchild. The credit allowed under this section: may not exceed $500 for each insured covered by long–term care insurance for which the individual pays the premiums; may not be claimed by more than one taxpayer with respect to the same insured individual; and may not be claimed with respect to an insured individual if: the insured individual was covered by long–term care insurance at any time before July 1, 2000; or the credit has been claimed with respect to that insured individual by any taxpayer for any prior taxable year. The total amount of the credit allowed under this section for any taxable year may not exceed the State income tax for that taxable year, calculated before application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, but after application of the other credits allowable under this subtitle. The unused amount of the credit for any taxable year may not be carried over to any other taxable year. The credit allowed under this section does not affect the treatment under this title of any deduction or exclusion allowed for federal income tax purposes for the eligible long–term care premiums paid by the individual. On or before December 1, 2005, and each December 1 thereafter, the Comptroller shall report to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly, regarding the credit allowed under this section, including: the number of individuals who have claimed the credit, the amount allowed as credits, and the additional number of individuals covered by long–term care insurance as a result of the credit; and the savings under the State’s Medical Assistance Program as a result of additional individuals being covered by long–term care insurance as a result of the credit.

In this section the following words have the meanings indicated. “Administration” means the Maryland Energy Administration. Except as provided in subparagraphs (ii) and (iii) of this paragraph, “qualified energy resources” has the meaning stated in § 45(c)(1) of the Internal Revenue Code. “Qualified energy resources” includes any nonhazardous waste material that is segregated from other waste materials and is derived from: any of the following forest–related resources, not including old–growth timber: mill residues, except sawdust and wood shavings; forest thinnings; slash; or brush; waste pallets, crates, and dunnage and landscape or right–of–way trimmings; or agricultural sources, including, but not limited to, orchard tree crops, vineyard, grain, legumes, sugar, and other crop by–products or residues. “Qualified energy resources” includes methane gas or other combustible gases resulting from the decomposition of organic materials from an agricultural operation, or from a landfill or wastewater treatment plant using one or a combination of the following processes: anaerobic decomposition; or thermal decomposition. “Qualified Maryland facility” means a facility located in the State that primarily uses qualified energy resources to produce electricity and is originally placed in service on or after January 1, 2006, but before January 1, 2019. Except as provided in paragraph (2) of this subsection, an individual or corporation that receives an initial credit certificate from the Administration may claim a credit against the State income tax for a taxable year in an amount equal to 0.85 cents for each kilowatt hour of electricity: produced by the individual or corporation from qualified energy resources at a qualified Maryland facility during the 5–year period specified in the initial credit certificate; and sold by the individual or corporation to a person other than a related person, within the meaning of § 45 of the Internal Revenue Code, during the taxable year. The annual tax credit under this subsection may not exceed one–fifth of the maximum amount of credit stated in the initial credit certificate. Subject to the provisions of this subsection and subsection (d) of this section, on application by a taxpayer, the Administration shall issue an initial credit certificate if the taxpayer has demonstrated that the taxpayer will within the next 12 months produce electricity from qualified energy resources at a qualified Maryland facility. The initial credit certificate issued under this subsection shall: state the maximum amount of credit that may be claimed by the taxpayer for electricity produced over a 5–year period; state the earliest tax year for which the credit may be claimed; and state the 5–year period during which electricity produced from qualified energy resources at the qualified Maryland facility qualifies for the credit. The maximum amount of credit stated in the initial credit certificate shall, for an energy producer, be in an amount equal to the lesser of: the product of multiplying 5 times the taxpayer’s estimated annual tax credit, based on estimated annual energy production, as certified by the Administration; or $2,500,000. The Administration shall approve all applications that qualify for an initial credit certificate under this subsection on a first–come, first–served basis. If a taxpayer over a 3–year period does not claim on average at least 10% of the maximum credit amount stated in the initial credit certificate, the Administration at its discretion may cancel an amount of the taxpayer’s initial credit certificate equal to the product of multiplying: the amount of the credit on average that was not claimed over the 3–year period; and the remaining number of tax years that the taxpayer is eligible to take the credit. An applicant for an initial credit certificate or a taxpayer whose credits have been canceled under paragraph (5) of this subsection, may appeal a decision by the Administration to the Office of Administrative Hearings in accordance with Title 10, Subtitle 2 of the State Government Article. The Administration may not issue an initial credit certificate after December 31, 2018. The Administration may not issue initial credit certificates for credit amounts less than $1,000. In this subsection, “Reserve Fund” means the Maryland Clean Energy Incentive Tax Credit Reserve Fund established under paragraph (2) of this subsection. There is a Maryland Clean Energy Incentive Tax Credit Reserve Fund that is a special continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The money in the Reserve Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall be credited to the General Fund. Except as otherwise provided in this paragraph, for any fiscal year, the Administration may not issue initial credit certificates for credit amounts in the aggregate totaling more than the amount appropriated to the Reserve Fund for that fiscal year in the State budget as approved by the General Assembly. If the aggregate credit amounts under initial credit certificates issued in a fiscal year total less than the amount appropriated to the Reserve Fund for that fiscal year, any excess amount shall remain in the Reserve Fund and may be issued under initial credit certificates for the next fiscal year. For any fiscal year, if funds are transferred from the Reserve Fund under the authority of any provision of law other than under paragraph (6) of this subsection, the maximum credit amounts in the aggregate for which the Administration may issue initial credit certificates shall be reduced by the amount transferred. For each of fiscal years 2018 and 2019, the Governor may include in the budget bill an appropriation to the Reserve Fund. Notwithstanding the provisions of § 7–213 of the State Finance and Procurement Article, the Governor may not reduce an appropriation to the Reserve Fund in the State budget as approved by the General Assembly. Except as provided in this paragraph, money appropriated to the Reserve Fund shall remain in the Fund. Within 15 days after the end of each calendar quarter, the Administration shall notify the Comptroller as to each final credit certificate issued during the quarter: the maximum credit amount stated in the initial tax credit certificate for the producer of electricity from qualified energy resources at a qualified Maryland facility; and the final certified credit amount for the electricity producer. On notification that a final credit amount has been certified, the Comptroller shall transfer an amount equal to the credit amount stated in the initial credit certificate for the electricity producer from the Reserve Fund to the General Fund. If the credit allowed under this section in any taxable year exceeds the State income tax otherwise payable by the corporation or individual for that taxable year, the corporation or the individual may claim a refund in the amount of the excess. On January 1, 2007, and each year thereafter, the Administration shall provide to the Comptroller a list of all taxpayers in the prior tax year that have been issued an initial credit certificate and shall specify for each taxpayer the earliest tax year for which the credit may be claimed and the maximum amount of credit allowed. On or before October 1, 2007, and each year thereafter, the Comptroller and the Administration jointly shall submit to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly a written report regarding: the number of certifications and taxpayers claiming the credit under this section; the name and physical location of each taxpayer issued an initial credit certificate; the maximum credit amount approved for each taxpayer; the geographical distribution of the credits claimed; and any other available information the Administration determines to be meaningful and appropriate. The Comptroller shall ensure that the information is presented and classified in a manner consistent with the confidentiality of tax return information.

In this section the following words have the meanings indicated. “Department” means the Department of Commerce. “Maryland base amount” means the base amount as defined in § 41(c) of the Internal Revenue Code that is attributable to Maryland, determined by: substituting “Maryland qualified research and development expense” for “qualified research expense”; substituting “Maryland qualified research and development” for “qualified research”; and using, instead of the “fixed base percentage”: the percentage that the Maryland qualified research and development expense for the 4 taxable years immediately preceding the taxable year in which the expense is incurred is of the gross receipts for those years; or for a taxpayer who has fewer than 4 but at least 1 prior taxable year, the percentage as determined under item 1 of this item, determined using the number of immediately preceding taxable years that the taxpayer has. “Maryland gross receipts” means gross receipts that are reasonably attributable to the conduct of a trade or business in this State, determined under methods prescribed by the Comptroller based on standards similar to the standards under § 10–402 of this title. “Maryland qualified research and development” means qualified research as defined in § 41(d) of the Internal Revenue Code that is conducted in this State. “Maryland qualified research and development expenses” means qualified research expenses as defined in § 41(b) of the Internal Revenue Code incurred for Maryland qualified research and development. “Net book value assets” means the total of a business’s net value of assets, including intangibles but not including liabilities, minus depreciation and amortization. “Small business” means a for–profit corporation, limited liability company, partnership, or sole proprietorship with net book value assets totaling, at the beginning or the end of the taxable year for which Maryland qualified research and development expenses are incurred, as reported on the balance sheet, less than $5,000,000. The purpose of the Research and Development Tax Credit Program is to foster increased research activities and expenditures in Maryland. Subject to the limitations of this section, an individual or a corporation may claim credits against the State income tax in an amount equal to 10% of the amount by which the Maryland qualified research and development expenses paid or incurred by the individual or corporation during the taxable year exceed the Maryland base amount for the individual or corporation. By November 15 of the calendar year following the end of the taxable year in which the Maryland qualified research and development expenses were incurred, an individual or corporation shall submit an application to the Department for the credits allowed under subsection (b) of this section. For each calendar year, the total amount of credits approved by the Department under subsection (b) of this section may not exceed $12,000,000. Except as provided in paragraph (5) of this subsection, each calendar year, the Department shall reserve $3,500,000 of the credits authorized under subsection (b) of this section for applicants that are small businesses. Subject to paragraph (5) of this subsection, if the total amount of credits applied for by all small businesses under this section exceeds the amount specified under subparagraph (i) of this paragraph, the Department shall approve a credit for each applicant in an amount equal to the product of multiplying the credit applied for by the applicant times a fraction: the numerator of which is the amount specified under subparagraph (i) of this paragraph; and the denominator of which is the total of all credits applied for by all small businesses under this section in the calendar year. Except as provided in paragraph (5) of this subsection, for each calendar year, the total amount of credits approved by the Department under this section to applicants that are not small businesses may not exceed $8,500,000. Subject to paragraph (5) of this subsection, if the total amount of credits applied for by all applicants that are not small businesses exceeds the maximum specified under subparagraph (i) of this paragraph, the Department shall approve a credit under this section for each applicant in an amount equal to the product of multiplying the credit applied for by the applicant times a fraction: the numerator of which is the maximum specified under subparagraph (i) of this paragraph; and the denominator of which is the total of all credits applied for by all applicants that are not small businesses in the calendar year. For any calendar year, if the total amount of credits applied for by all small businesses is less than $3,500,000, the amount specified under paragraph (4)(i) of this subsection shall be increased for that calendar year by an amount equal to the difference between $3,500,000 and the total amount of credits applied for by small businesses. For any calendar year, if the total amount of credits applied for by all applicants that are not small businesses is less than $8,500,000, the amount specified under paragraph (3)(i) of this subsection shall be increased for that calendar year by an amount equal to the difference between $8,500,000 and the total amount of credits applied for by applicants that are not small businesses. The Department may not approve a tax credit for any single applicant in an amount exceeding $250,000. By February 15 of the calendar year following the end of the year in which the individual or corporation submitted an application for the credit in accordance with paragraph (1) of this subsection, the Department shall certify to the individual or corporation the amount of the research and development tax credits approved by the Department for the individual or corporation under this section. To claim the approved credits allowed under this section, an individual or corporation shall: file an amended income tax return for the taxable year in which the Maryland qualified research and development expense was incurred; and attach a copy of the Department’s certification of the approved credit amount to the amended income tax return; or subject to subsection (d) of this section, attach a copy of the Department’s certification of the approved credit amount to an income tax return filed for any of the 7 taxable years after the taxable year in which the Maryland qualified research and development expenses were incurred. Except as provided in paragraph (2) of this subsection, if the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, an individual or corporation may apply the excess as a credit against the State income tax for succeeding taxable years until the earlier of: the full amount of the excess is used; or the expiration of the 7th taxable year after the taxable year in which the Maryland qualified research and development expense was incurred. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, a small business may claim a refund in the amount of the excess. In determining the amount of the credit under this section: all members of the same controlled group of corporations, as defined under § 41(f) of the Internal Revenue Code, shall be treated as a single taxpayer; and the credit allowable by this section to each member shall be its proportionate shares of the qualified research expenses giving rise to the credit. The Comptroller shall adopt regulations providing for: determination of the amount of the credit under this section in the case of trades or businesses, whether or not incorporated, that are under common control; pass–through and allocation of the credit in the case of estates and trusts, partnerships, unincorporated trades or businesses, and S corporations; adjustments in the case of acquisitions and dispositions described in § 41(f)(3) of the Internal Revenue Code; and determination of the credit in the case of short taxable years. The regulations adopted under paragraph (2) of this subsection shall be based on principles similar to the principles applicable under § 41 of the Internal Revenue Code and regulations adopted thereunder. The Department of Commerce and the Comptroller jointly shall adopt regulations to prescribe standards for determining when research or development is considered conducted in the State for purposes of determining the credit under this section. In adopting regulations under this subsection, the Department and the Comptroller may consider: the location where services are performed; the residence or business location of the person or persons performing services; the location where supplies used in research and development are consumed; and any other factors that the Department determines are relevant for the determination. In accordance with § 2.5–109 of the Economic Development Article, the Department shall report on the credits approved under this section. If the provisions of § 41 of the Internal Revenue Code governing the federal research and development tax credit are repealed or terminate, the provisions of this section continue to operate as if the provisions of § 41 of the Internal Revenue Code remain in effect, and the Maryland research and development tax credit under this section shall continue to be available. The Department may not approve a credit under this section for a taxable year beginning after December 31, 2030. If a taxpayer’s taxable year for income tax purposes is not the calendar year, for the taxable year that begins in calendar year 2030, the taxpayer may apply for only a prorated credit for research and development expenses paid or incurred in the taxable year for that part of the taxable year that falls in calendar year 2030.

In this section the following words have the meanings indicated. “Administration” means the Maryland Energy Administration. “Allowable costs” means amounts properly chargeable to capital account, other than for land, that are paid or incurred on or after July 1, 2001, for: construction or rehabilitation; commissioning costs; interest paid or incurred during the construction or rehabilitation period; architectural, engineering, and other professional fees allocable to construction or rehabilitation; closing costs for construction, rehabilitation, or mortgage loans; recording taxes and filing fees incurred with respect to construction or rehabilitation; and finishes and furnishings consistent with the regulations adopted by the Administration under this section, lighting, plumbing, electrical wiring, and ventilation. “Allowable costs” does not include: the cost of telephone systems and computers, other than electrical wiring costs; legal fees allocable to construction or rehabilitation; site costs, including temporary electric wiring, scaffolding, demolition costs, and fencing and security facilities; finishes or furnishings that are not consistent with the regulations adopted by the Administration under this section; or the cost of purchasing or installing fuel cells, wind turbines, or photovoltaic modules. “Applicable energy efficiency standards” means ASHRAE/IESNA Standard 90.1–1999, Energy Standard for Buildings Except Low–Rise Residential Buildings, published by the American Society of Heating, Refrigerating and Air–Conditioning Engineers. “Base building” means all areas of a building not intended for occupancy by a tenant or owner, including the structural components of the building, exterior walls, floors, windows, roofs, foundations, chimneys and stacks, parking areas, mechanical rooms and mechanical systems, and owner–controlled or operated service spaces, sidewalks, main lobby, shafts and vertical transportation mechanisms, stairways, and corridors. “Commissioning” means: the testing and fine–tuning of heat, ventilating, and air–conditioning systems and other systems to assure proper functioning and adherence to design criteria; and the preparation of system operation manuals and instruction of maintenance personnel. “Credit allowance year” means the later of: the taxable year during which: the property, construction, completion, or rehabilitation on which the credit allowed under this section is based is originally placed in service; or a fuel cell, wind turbine, or photovoltaic module constitutes a qualifying alternate energy source and is fully operational; or the earliest taxable year for which the credit may be claimed under the initial credit certificate issued under subsection (k) of this section. “Eligible building” means a building located in the State that: is a building used primarily for nonresidential purposes if the building contains at least 20,000 square feet of interior space; is a residential multifamily building with at least 12 dwelling units that contains at least 20,000 square feet of interior space; or is any combination of buildings described in item 1 or 2 of this item; in the case of a newly constructed building for which a certificate of occupancy was not issued before July 1, 2001: is located on a qualified brownfields site, as defined under § 5–301 of the Economic Development Article; or is located in a priority funding area under § 5–7B–02 of the State Finance and Procurement Article; and is not located on wetlands, the alteration of which requires a permit under § 404 of the federal Clean Water Act, 33 U.S.C. § 1344; and in the case of a rehabilitation of a building: is located in a priority funding area under § 5–7B–02 of the State Finance and Procurement Article or on a qualified brownfields site as defined under § 5–301 of the Economic Development Article; or is not an increase of more than 25% in the square footage of the building. “Fuel cell” means a device that produces electricity directly from hydrogen or hydrocarbon fuel through a noncombustive electrochemical process. “Green base building” means a base building that is part of an eligible building and meets the requirements set out in subsection (i) of this section. “Green tenant space” means tenant space in a building if the building is an eligible building and the tenant space meets the requirements of subsection (j) of this section. “Green whole building” means a building for which the base building is a green base building and all tenant space is green tenant space. “Incremental cost of building–integrated photovoltaic modules” means: the cost of building–integrated photovoltaic modules and any associated inverter, additional wiring or other electrical equipment for the photovoltaic modules, or additional mounting or structural materials, less the cost of spandrel glass or other building material that would have been used if building–integrated photovoltaic modules were not installed; incremental labor costs properly allocable to on–site preparation, assembly, and original installation of photovoltaic modules; and incremental costs of architectural and engineering services and designs and plans directly related to the construction or installation of photovoltaic modules. “Qualifying alternate energy sources” means building–integrated and nonbuilding–integrated photovoltaic modules, wind turbines, and fuel cells installed to serve the base building or tenant space that: have the capability to monitor their actual power output; are fully commissioned upon installation, and annually thereafter, to ensure that the systems meet their design specifications; and in the case of wind turbines, meet any applicable noise ordinances. “Tenant improvements” means improvements that are necessary or appropriate to support or conduct the business of a tenant or occupying owner. “Tenant space” means the portion of a building intended for occupancy by a tenant or occupying owner. An individual or a corporation may claim a credit against the State income tax as provided under this section for green buildings and green building components. If the credit allowed under this section exceeds the State income tax, any unused credit may be carried forward and applied for succeeding taxable years until the earlier of: the full amount of the credit is used; or the expiration of the 10th year after the taxable year for which the credit was allowed. For each of the credits under subsections (c) through (h) of this section, the credit may not be allowed for any taxable year unless: the taxpayer has obtained and filed an initial credit certificate and an eligibility certificate issued under subsection (k) of this section; a certificate of occupancy for the building has been issued; and the property with respect to which the credit is claimed is in service during the taxable year. The total amount allowed in the aggregate for all credits under this section may not exceed the maximum set forth in the initial credit certificate obtained under subsection (k) of this section. In determining the amount of the credits under this section, a cost paid or incurred may not be the basis for more than one credit. For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in an amount equal to 8% of the allowable costs paid or incurred by the owner or tenant for the construction of a green whole building or the rehabilitation of a building that is not a green whole building to be a green whole building. The allowable costs used to determine the credit amount allowed under this subsection for a green whole building may not exceed in the aggregate: $120 per square foot for that portion of the building that comprises the base building; and $60 per square foot for that portion of the building that comprises the tenant space. For the taxable year that is the credit allowance year, an owner may claim a credit in an amount equal to 6% of the allowable costs paid or incurred by the owner for the construction of a green base building or the rehabilitation of a building that is not a green base building to be a green base building. The allowable costs used to determine the credit amount allowed under this subsection for a green base building may not exceed, in the aggregate, $120 per square foot. For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in an amount equal to 6% of the allowable costs for tenant improvements paid or incurred by the owner or tenant in the construction or completion of green tenant space or the rehabilitation of tenant space that is not green tenant space to be green tenant space. The allowable costs used to determine the credit amount allowed under this subsection for green tenant space may not exceed, in the aggregate, $60 per square foot. If an owner and tenant both incur allowable costs for tenant improvements under this subsection and the costs exceed $60 per square foot in the aggregate, the owner has priority as to costs constituting the basis for the green tenant space credit under this subsection. The credit under this subsection for green tenant space may not be claimed by an owner of a building that occupies fewer than 10,000 square feet of the building. The credit under this subsection for green tenant space may not be claimed by a tenant that occupies fewer than 5,000 square feet. For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in the amount determined under this subsection for the installation of a fuel cell that is a qualifying alternate energy source and is installed to serve a green whole building, green base building, or green tenant space. The amount of the credit allowed under this subsection is 30% of the sum of the capitalized costs paid or incurred by an owner or tenant with respect to each fuel cell installed, including the cost of the foundation or platform and the labor costs associated with installation. The costs used to determine the credit amount allowed under this subsection for installation of a fuel cell: may not exceed $1,000 per kilowatt of installed DC rated capacity of the fuel cell; and shall be reduced by the amount of any federal, State, or local grant: received by the taxpayer and used for the purchase or installation of the fuel cell; and not included in the federal gross income of the taxpayer. For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in the amount determined under this subsection for the installation of photovoltaic modules that constitute a qualifying alternate energy source and are installed to serve a green whole building, green base building, or green tenant space. The amount of the credit allowed under this subsection is: 20% of the incremental cost paid or incurred by an owner or tenant for building–integrated photovoltaic modules; and 25% of the cost of nonbuilding–integrated photovoltaic modules, including the cost of the foundation or platform and the labor costs associated with installation. The costs used to determine the credit amount allowed under this subsection for installation of photovoltaic modules: may not exceed the product obtained by multiplying $3 times the number of watts included in the DC rated capacity of the photovoltaic modules; and shall be reduced by the amount of any federal, State, or local grant: received by the taxpayer and used for the purchase or installation of the photovoltaic equipment; and not included in the federal gross income of the taxpayer. For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in the amount determined under paragraph (2) of this subsection for the installation of a wind turbine that is a qualifying alternate energy source and is installed to serve a green whole building, green base building, or green tenant space. The amount of the credit allowed under this subsection is 25% of the sum of the capitalized costs paid or incurred by an owner or tenant with respect to each wind turbine installed, including the cost of the foundation or platform and the labor costs associated with installation. By regulation, the Administration shall adopt standards for a building to qualify as a green base building eligible for the tax credits under this section that are consistent with the criteria for green base buildings set forth by the United States Green Building Council or other similar criteria. The regulations adopted under this subsection shall provide that the energy use shall be no more than 65% for new construction of a base building, or 75% in the case of rehabilitation of a base building, of the energy use attributable to a reference building that meets the requirements of applicable energy efficiency standards. By regulation, the Administration shall adopt standards for tenant space to qualify as green tenant space eligible for the tax credits under this section that are consistent with the criteria for green tenant space set forth by the United States Green Building Council or other similar criteria. The regulations adopted under this subsection shall provide that the energy use shall be no more than 65% for new construction, or 75% in the case of rehabilitation, of the energy use attributable to a reference building that meets the requirements of applicable energy efficiency standards. On application by a taxpayer, the Administration shall issue an initial credit certificate if the taxpayer has made a showing that the taxpayer is likely within a reasonable time to place in service property for which a credit under this section would be allowed. The initial credit certificate issued under this paragraph: shall state the earliest taxable year for which the credit may be claimed and an expiration date; and shall apply only to property placed in service on or before the expiration date. To avoid unwarranted hardship, the Administration at its discretion may extend the expiration date stated under an initial credit certificate. The initial credit certificate shall state the maximum amount of credit allowable in the aggregate for all credits allowed under this section. The Administration may not issue initial credit certificates, in the aggregate, for more than $25,000,000 worth of credits. Except as provided in subparagraph (vii) of this paragraph, initial credit certificates shall be limited in their applicability, as follows: Credits in the aggregate      With respect to taxable years may not be allowed         beginning: for more than: $1 million               2003 $2 million               2004 $3 million               2005 $4 million               2006 $5 million               2007 $4 million               2008 $3 million               2009 $2 million               2010 $1 million               2011 As of the end of a calendar year, if certificates for credit amounts totaling less than the amount permitted with respect to taxable years beginning in that calendar year have been issued, the maximum amount that may be allowed for taxable years beginning in the subsequent calendar year shall be increased by the amount of the preceding year’s shortfall. The Administration may not issue an initial credit certificate after December 31, 2011. On January 1, 2004, and each year thereafter, the Administration shall provide to the Comptroller a list of all taxpayers in the prior taxable year that have been issued an initial credit certificate and shall specify for each taxpayer the earliest taxable year for which the credit may be claimed and the maximum amount of the credit allowable in the aggregate for all credits allowed under this section. For each taxable year for which a taxpayer claims a credit under this section with respect to a green whole building, green base building, green tenant space, fuel cell, photovoltaic module, or wind turbine, the taxpayer shall obtain an eligibility certificate from an architect or professional engineer licensed to practice in this State. An eligibility certificate issued under this paragraph shall consist of a certification, under the seal of the architect or engineer, that the property that is the basis for the credit that is claimed is in service and that: the building, base building, or tenant space with respect to which the credit is claimed is a green whole building, green base building, or green tenant space; and any fuel cell, photovoltaic module, or wind turbine with respect to which the credit is claimed constitutes a qualifying alternate energy source and is fully operational. The certification under subparagraph (ii) of this paragraph: shall be made in accordance with the regulations adopted by the Administration under this section specifying the standards and guidelines for each credit under this section; and shall set forth the specific findings on which the certification was based. The taxpayer shall file the eligibility certificate and the associated initial credit certificate with the taxpayer’s income tax return and shall file duplicate copies of the eligibility certificate with the Administration. The eligibility certificate shall include: sufficient information to identify each building or space; and any other information that the Administration or the Comptroller requires by regulation. If the Administration has reason to believe that an architect or professional engineer, in making any certification under this subsection, engaged in professional misconduct, the Administration shall inform the appropriate professional board of the suspected misconduct. The Comptroller and the Administration may adopt regulations necessary to carry out the provisions of this section. Regulations adopted under this section shall construe the provisions of this section in such a manner as to encourage the development of green whole buildings, green base buildings, and green tenant space and to maintain high, but commercially reasonable, standards for obtaining tax credits under this section. On or before April 1, 2005, the Comptroller and the Administration, jointly and in consultation with the Department of the Environment, shall submit to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly, a written report regarding: the number of certifications and taxpayers claiming the credit under this section; the amount of the credits claimed; the geographical distribution of the credits claimed; and any other available information the Administration determines to be meaningful and appropriate. The Comptroller shall ensure that the information is presented and classified in a manner consistent with the confidentiality of tax return information. On or before July 1, 2002, the Administration, in consultation with the Department of the Environment and the Department of Natural Resources, shall adopt regulations with respect to the certification of green whole buildings, green base buildings, and green tenant space that are consistent with criteria set forth by the State’s Green Buildings Council or other similar criteria for: energy use; appliance and heating, cooling, and hot water equipment standards; air conditioning equipment, including chillers; building materials, finishes, and furnishings; stormwater runoff for new construction; water conservation and efficiency; and indoor air quality, in consultation with the Maryland Department of Health.

In this section the following words have the meanings indicated. “Department” means the Department of Natural Resources. “Member” means: a shareholder of an S corporation; a general or limited partner of a partnership, a limited partnership, or a limited liability partnership; a member of a limited liability company; or a beneficiary of a business trust or a statutory trust. “Pass–through entity” means: an S corporation; a partnership; a limited liability company that is not taxed as a corporation under this title; or a business trust or a statutory trust that is not taxed as a corporation under this title. An individual or a member of a pass–through entity may claim a credit against the State income tax as provided in this section for an easement conveyed to the Maryland Environmental Trust, the Maryland Agricultural Land Preservation Foundation, or the Department for the purpose of preserving open space, natural resources, agriculture, forest land, watersheds, significant ecosystems, viewsheds, or historic properties, if: the easement is perpetual; and the easement is accepted and approved by the Board of Public Works. Subject to subsection (d)(2) of this section, the credit under this section shall be allowed for the taxable year in which the conveyance is approved by the Board of Public Works. Except as otherwise provided in this section, the amount of the credit allowed under this section is the amount by which the fair market value of the property before the conveyance of the easement exceeds the fair market value of the property after the conveyance of the easement. The fair market value of the property before and after the conveyance of the easement shall be substantiated by an appraisal prepared by a certified real estate appraiser, as defined under § 16–101 of the Business Occupations and Professions Article. The amount of the credit shall be reduced by the amount of any payment received for the easement. For any taxable year, the credit allowed under this section may not exceed the lesser of: the State income tax for that taxable year; or $5,000. If the credit otherwise allowable under subsection (c) of this section exceeds the limit under paragraph (1) of this subsection, a taxpayer may apply the excess as a credit against the State income tax for succeeding taxable years until the earlier of: the full amount of the excess is used; or the expiration of the 15th taxable year after the taxable year in which the conveyance was approved by the Board of Public Works. For each taxable year, the amount carried forward to the taxable year under paragraph (2) of this subsection may not exceed the limit under paragraph (1) of this subsection. The sum of all credits claimed by members of a pass–through entity in a taxable year may not exceed the amount specified under paragraph (1)(ii) of this subsection. For a taxable year, the total aggregate amount of credits claimed by members of pass–through entities under this section may not exceed $200,000. For pass–through entities, the Board of Public Works shall approve credits for conveyances under this section on a first–come, first–served basis. The credit under this section may not be claimed for a required dedication of open space for the purpose of fulfilling density requirements to obtain a subdivision or building permit. The Comptroller shall adopt regulations to specify procedures for a member of a pass–through entity to claim the credit under this section.

In this section, “aquaculture oyster float” means a device that is: purchased new; specifically designed for the purpose of growing oysters at or under an individual homeowner’s pier; and constructed to be fully buoyant and facilitate the growth of oysters for the width of the pier. Subject to the limitations of this section, an individual may claim a credit against the State income tax in an amount equal to 100% of the purchase price of aquaculture oyster floats purchased during the taxable year. For any taxable year, the credit allowed under this section may not exceed the lesser of: $500; or the State income tax imposed for the taxable year calculated before the application of the credits allowed under this section and under §§ 10-701 and 10-701.1 of this subtitle but after the application of any other credit allowed under this subtitle. The unused amount of the credit may not be carried over to any other taxable year.

In this section the following words have the meanings indicated. “Biotechnology company” means a company organized for profit that is primarily engaged in, or within 2 months will be primarily engaged in, the research, development, or commercialization of innovative and proprietary technology that comprises, interacts with, or analyzes biological material including biomolecules (DNA, RNA, or protein), cells, tissues, or organs. “Company” means any entity of any form duly organized and existing under the laws of any jurisdiction for the purpose of conducting business for profit. “Company” does not include a sole proprietorship. “Department” means the Department of Commerce. “Investment” means the contribution of money in cash or cash equivalents expressed in United States dollars, at a risk of loss, to a qualified Maryland biotechnology company in exchange for stock, a partnership or membership interest, or other ownership interest in the equity of the qualified Maryland biotechnology company, title to which ownership interest shall vest in the qualified investor. “Investment” does not include debt. For purposes of this section, an investment is at risk of loss when its repayment entirely depends upon the success of the business operations of the qualified company. “Qualified investor” means any individual or entity that invests at least $25,000 in a qualified Maryland biotechnology company and that is required to file an income tax return in any jurisdiction. “Qualified investor” does not include: a qualified pension plan, individual retirement account, or other qualified retirement plan under the Employee Retirement Income Security Act of 1974, as amended, or fiduciaries or custodians under such plans, or similar tax–favored plans or entities under the laws of other countries; or a founder or current employee of the qualified Maryland biotechnology company, if the company has been in active business for more than 5 years. “Qualified Maryland biotechnology company” means a biotechnology company that: has its headquarters and base of operations in this State; has fewer than 50 full–time employees; has been in active business no longer than 12 years; does not have its securities publicly traded on any exchange; has been certified as a biotechnology company by the Department; and the qualified investors in the company have not received more than $7,000,000 in tax credits in the aggregate under this section. “Qualified Maryland biotechnology company” includes a company that, within 2 months of the receipt of the investment, has met the requirements of subparagraph (i) of this paragraph. “Secretary” means the Secretary of Commerce. The Biotechnology Investment Incentive Tax Credit is intended to foster the growth of Maryland’s biotechnology industry by incentivizing investment in early stage companies with the goal of increasing the number of companies developing biotechnologies in Maryland, increasing overall investments in the biotechnology sector, and increasing the number of individual investors actively investing in Maryland’s life sciences companies. Subject to paragraphs (3) and (4) of this subsection and subsections (d) and (e) of this section, for the taxable year in which an investment in a qualified Maryland biotechnology company is made, a qualified investor may claim a credit against the State income tax in an amount equal to the amount of tax credit stated in the final credit certificate approved by the Secretary for the investment as provided under this section. To be eligible for the tax credit described in paragraph (2) of this subsection, the qualified investor shall be: for a company, duly organized and in good standing in the jurisdiction under the laws under which it is organized; for a company, in good standing and authorized or registered to do business in the State; current in the payment of all tax obligations to the State or any unit or subdivision of the State; and not in default under the terms of any contract with, indebtedness to, or grant from the State or any unit or subdivision of the State. To be eligible for the tax credit described in paragraph (2) of this subsection, the qualified investor may not, after making the proposed investment, own or control more than 25% of the equity interests in the qualified Maryland biotechnology company in which the investment is to be made. At least 30 days prior to making an investment in a qualified Maryland biotechnology company for which a qualified investor would be eligible for an initial tax credit certificate under subsection (b) of this section, the qualified investor shall submit an application to the Department. The application shall evidence that the qualified Maryland biotechnology company is: in good standing; current in the payment of all tax obligations to the State or any unit or subdivision of the State; and not in default under the terms of any contract with, indebtedness to, or grant from the State or any unit or subdivision of the State. Subject to subparagraph (ii) of this paragraph, the Department shall: approve all applications that qualify for credits under this section on a first–come, first–served basis; and within 30 days of receipt of an application, certify the amount of any approved tax credits to a qualified investor. The Department may not issue any tax credit certificates under this section after June 30, 2028. After the date on which the Department issues an initial tax credit certificate under this section, a qualified investor shall have 30 calendar days to make an investment in a qualified Maryland biotechnology company under this section. Within 10 calendar days after the date on which a qualified investor makes the investment, the qualified investor shall provide to the Department notice and proof of the making of the investment, including: the date of the investment; the amount invested; proof of the receipt of the invested funds by the qualified Maryland biotechnology company; a complete description of the nature of the ownership interest in the equity of the qualified Maryland biotechnology company acquired in consideration of the investment; and any reasonable supporting documentation the Department may require. If a qualified investor does not provide the notice and proof of the making of the investment required in subparagraph (ii) of this paragraph within 40 calendar days after the date on which the Department issues an initial tax credit certificate under this section: the Department shall rescind the initial tax credit certificate; and the credit amount allocated to the rescinded certificate shall revert to the Maryland Biotechnology Investment Tax Credit Reserve Fund and shall be available in the applicable fiscal year for allocation by the Department to other initial tax credit certificates in accordance with the provisions of this section. The tax credit allowed in an initial tax credit certificate issued under this section is: except as provided in item (ii) of this paragraph, 33% of the investment in a qualified Maryland biotechnology company, not to exceed $250,000; or 50% of the investment in the qualified Maryland biotechnology company, not to exceed $500,000, if a qualified Maryland biotechnology company: is located in Allegany County, Dorchester County, Garrett County, or Somerset County; or is located in a Regional Institution Strategic Enterprise zone that is designated under Title 5, Subtitle 14 of the Economic Development Article, is based on technology that was developed at a qualified institution within that zone, and has been in active business not longer than 7 years. During any fiscal year, the Secretary may not certify eligibility for tax credits for investments in a single qualified Maryland biotechnology company that in the aggregate exceed 10% of the total appropriations to the Maryland Biotechnology Investment Tax Credit Reserve Fund for that fiscal year. If the tax credit allowed under this section in any taxable year exceeds the total tax otherwise payable by the qualified investor for that taxable year, the qualified investor may claim a refund in the amount of the excess. In this subsection, “Reserve Fund” means the Maryland Biotechnology Investment Tax Credit Reserve Fund established under paragraph (2) of this subsection. There is a Biotechnology Investment Tax Credit Reserve Fund which is a special continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The money in the Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall be credited to the General Fund. Subject to the provisions of this subsection, the Secretary shall issue an initial tax credit certificate for each approved investment in a qualified Maryland biotechnology company eligible for a tax credit. An initial tax credit certificate issued under this subsection shall state the maximum amount of tax credit for which the qualified investor is eligible. Except as otherwise provided in this subparagraph, for any fiscal year, the Secretary may not issue initial tax credit certificates for credit amounts in the aggregate totaling more than the amount appropriated to the Reserve Fund for that fiscal year in the State budget as approved by the General Assembly. If the aggregate credit amounts under initial tax credit certificates issued in a fiscal year total less than the amount appropriated to the Reserve Fund for that fiscal year, any excess amount shall remain in the Reserve Fund and may be issued under initial tax credit certificates for the next fiscal year. For any fiscal year, if funds are transferred from the Reserve Fund under the authority of any provision of law other than under paragraph (4) of this subsection, the maximum credit amounts in the aggregate for which the Secretary may issue initial tax credit certificates shall be reduced by the amount transferred. For each fiscal year, the Governor shall include in the budget bill an appropriation to the Reserve Fund. Notwithstanding the provisions of § 7–213 of the State Finance and Procurement Article, the Governor may not reduce an appropriation to the Reserve Fund in the State budget as approved by the General Assembly. Based on the actual amount of an investment made by a qualified investor, the Secretary shall issue a final tax credit certificate to the qualified investor. Except as provided in this paragraph, money appropriated to the Reserve Fund shall remain in the Fund. Within 15 days after the end of each calendar quarter, the Department shall notify the Comptroller as to each final credit certificate issued during the quarter: the maximum credit amount stated in the initial tax credit certificate for the investment; and the final certified credit amount for the investment. On notification that an investment has been certified, the Comptroller shall transfer an amount equal to the credit amount stated in the initial tax credit certificate for the investment from the Reserve Fund to the General Fund. The credit claimed under this section shall be recaptured as provided in paragraph (2) of this subsection if within 2 years from the close of the taxable year for which the credit is claimed: the qualified investor sells, transfers, or otherwise disposes of the ownership interest in the qualified Maryland biotechnology company that gave rise to the credit; or the qualified Maryland biotechnology company that gave rise to the credit ceases operating as an active business with its headquarters and base of operations in the State. The amount required to be recaptured under this subsection is the product of multiplying: the total amount of the credit claimed or, in the case of an event described in paragraph (1)(i) of this subsection, the portion of the credit attributable to the ownership interest disposed of; and 100%, if the event requiring recapture of the credit occurs during the taxable year for which the tax credit is claimed; 67%, if the event requiring recapture of the credit occurs during the first year after the close of the taxable year for which the tax credit is claimed; or 33%, if the event requiring recapture of the credit occurs more than 1 year but not more than 2 years after the close of the taxable year for which the tax credit is claimed. The qualified investor that claimed the credit shall pay the amount to be recaptured as determined under paragraph (2) of this subsection as taxes payable to the State for the taxable year in which the event requiring recapture of the credit occurs. The Department may revoke its initial or final certification of an approved credit under this section if any representation in connection with the application for the certification is determined by the Department to have been false when made. The revocation may be in full or in part as the Department may determine and, subject to paragraph (3) of this subsection, shall be communicated to the qualified investor and the Comptroller. The qualified investor shall have an opportunity to appeal any revocation to the Department prior to notification of the Comptroller. The Comptroller may make an assessment against the qualified investor to recapture any amount of tax credit that the qualified investor has already claimed. In accordance with § 2.5–109 of the Economic Development Article, the Department shall report on the initial tax credit certificates awarded for the calendar year and the qualified Maryland biotechnology companies that received an investment for which an initial tax credit certificate was awarded. The Department and the Comptroller jointly shall adopt regulations to carry out the provisions of this section and to specify criteria and procedures for application for, approval of, and monitoring continuing eligibility for the tax credit under this section. If a company receives an investment under subsection (a)(7)(ii) of this section and fails to satisfy the requirements for a qualified Maryland biotechnology company within 2 months, the Department shall revoke any final tax credit certificates that have been issued and recapture any tax credits already claimed by the qualified investor.

In this section the following words have the meanings indicated. “Cellulosic ethanol technology” means technology that is used to develop cellulosic biomass for conversion to ethanol fuel. “Department” means the Department of Commerce. “Qualified research and development expenses” means expenses paid or incurred for cellulosic ethanol technology research and development that is conducted in the State. Subject to the limitations of this section, an individual or corporation may claim a credit against the State income tax in an amount equal to 10% of the qualified research and development expenses paid or incurred by the individual or corporation during the taxable year. By September 15 of the calendar year following the end of the taxable year in which the qualified research and development expenses were paid or incurred, an individual or corporation shall submit an application to the Department for the credit allowed under this section. The total amount of credits approved by the Department under this section may not exceed $250,000 for any calendar year. If the total amount of credits applied for by all individuals and corporations under this section exceeds the maximum specified under subparagraph (i) of this paragraph, the Department shall approve a credit under this section for each applicant in an amount equal to the product of multiplying the credit applied for by the applicant times a fraction: the numerator of which is the maximum specified under subparagraph (i) of this paragraph; and the denominator of which is the total of all credits applied for by all applicants in the calendar year. By December 15 of the calendar year following the end of the taxable year in which the qualified research and development expenses were paid or incurred, the Department shall certify to the individual or corporation the amount of the research and development tax credit approved by the Department for the individual or corporation under this section. To claim the approved credit allowed under this section, an individual or corporation shall: file an amended income tax return for the taxable year in which the qualified research and development expenses were paid or incurred; and attach a copy of the Department’s certification of the approved credit amount to the amended income tax return. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, an individual or corporation may apply the excess as a credit against the State income tax for succeeding taxable years until the earlier of: the full amount of the excess is used; or the expiration of the 15th taxable year after the taxable year in which the qualified research and development expenses were paid or incurred. In determining the amount of the credit under this section: all members of the same controlled group of corporations, as defined under § 41(f) of the Internal Revenue Code, shall be treated as a single taxpayer; and the credit allowable by this section to each member shall be its proportionate share of the qualified research and development expenses giving rise to the credit. The Comptroller shall adopt regulations providing for: determination of the amount of the credit under this section in the case of trades or businesses, whether or not incorporated, that are under common control; pass–through and allocation of the credit in the case of estates and trusts, partnerships, unincorporated trades or businesses, and S corporations; adjustments in the case of acquisitions and dispositions described in § 41(f)(3) of the Internal Revenue Code; and determination of the credit in the case of short taxable years. The Department and the Comptroller jointly shall adopt regulations to prescribe standards for determining when research or development is considered conducted in the State for purposes of determining the credit under this section. In adopting regulations under this subsection, the Department and the Comptroller may consider: the location where services are performed; the residence or business location of the person or persons performing services; the location where supplies used in research and development are consumed; and any other factors that the Department determines are relevant for the determination. The credit under this section does not apply to any qualified research and development expenses paid or incurred after December 31, 2016.

In this section the following words have the meanings indicated. “Department” means the Department of Commerce. “Digital animation project” means the creation, development, and production of computer–generated animation content for distribution or exhibition to the general public. “Film production activity” means: the production of a film or video project that is intended for nationwide commercial distribution; and for a television series, each season of the television series. “Film production activity” includes the production of: a feature film; a television project; a commercial; a corporate film; a music video; a digital animation project; a documentary; or a talk, reality, or game show. “Film production activity” does not include production of: a student film; a noncommercial personal video; a sports broadcast; a broadcast of a live event; a video, computer, or social networking game; pornography; an infomercial; a digital project or an animation project other than a digital animation project; or a multimedia project. “Maryland small or independent film entity” means a qualified film production entity that: has been incorporated in Maryland for at least 3 months; is independently owned and operated; is not a subsidiary of another entity; is not dominant in its field of operation; employs 25 or fewer full–time employees; and employs Maryland residents as at least 40% of its workforce in the film production activity. “Pornography” means any production for which records are required to be maintained under § 2257 of Title 18, U.S.C., with respect to any performer in such production engaging in sexually explicit conduct. “Qualified film production entity” means an entity that: is carrying out a film production activity; and the Secretary determines to be eligible for the tax credit under this section in accordance with subsection (c) of this section. “Secretary” means the Secretary of Commerce. “Television series” means a group of program episodes intended for television broadcast or transmission with a common series title, with or without a predetermined number of episodes, and shall include a miniseries and a pilot episode produced for an intended television series. “Total direct costs”, with respect to a film production activity, means the total costs incurred in the State that are necessary to carry out the film production activity. “Total direct costs” includes costs incurred for: employee wages and benefits; fees for services; acquiring or leasing property; salaries, wages, or other compensation for writers, directors, or producers; and any other expense necessary to carry out a film production activity, including costs associated with: set construction and operation; wardrobe, makeup, and related services; photography and sound synchronization, lighting, and related services and materials; editing and related services, including film processing, transfers of film to tape or digital format, sound mixing, computer graphic services, special effects services, and animation services; salary, wages, and other compensation including related benefits, for work performed in the State, paid to persons employed in the production; rental of facilities in the State and equipment used in the State; leasing of vehicles; food and lodging; music, if performed, composed, or recorded by a Maryland musician or published by a person or company domiciled in Maryland; travel expenses incurred to bring persons employed, either directly or indirectly, in the production of the project to Maryland, but not including expenses of these persons departing from Maryland; and legal and accounting services performed by attorneys or accountants licensed in Maryland. “Total direct costs” does not include any salary, wages, or other compensation for personal services of an individual who receives more than $500,000 in salary, wages, or other compensation for personal services in connection with any film production activity. The purpose of the tax credit allowed under this section is to incentivize and promote film production activity in the State to stimulate the local economy by creating jobs, fostering investment in industry infrastructure, and boosting tourism. A qualified film production entity may claim a credit against the State income tax for film production activities in the State in an amount equal to the amount stated in the final tax credit certificate approved by the Secretary for film production activities. If the tax credit allowed under this section in any taxable year exceeds the total tax otherwise payable by the qualified film production entity for that taxable year, the qualified film production entity may claim a refund in the amount of the excess. Before beginning a film production activity, a film production entity shall submit to the Department an application to qualify as a film production entity. The application shall describe the anticipated film production activity, including: the projected total budget; the estimated number of Maryland resident and out–of–state employees and total wages to be paid; and the anticipated dates for carrying out the major elements of the film production activity. Except as provided in subsection (h) of this section, to qualify as a film production entity, the estimated total direct costs incurred in the State must exceed $250,000. The application shall include any other information required by the Secretary. For a film production entity with total direct costs that exceed $250,000, the Secretary may require the information provided in an application to be verified by an independent auditor selected and paid for by the film production entity seeking certification. The Secretary shall: determine if the film production entity qualifies for the credit under this section; and notify the Comptroller of the estimated amount of total direct costs and the taxable year the credit will be claimed. A qualified film production entity may amend its initial application submitted under paragraph (1) of this subsection if an independent auditor selected and paid for by the qualified film production entity has verified that the projected total budget in its initial application has increased or decreased by at least 50%. The Secretary shall: evaluate an amended application submitted under subparagraph (i) of this paragraph; determine if the film production entity continues to qualify for the credit under this section; and subject to the availability of credit amount in the fiscal year, if the Secretary approves the amended application, notify the Comptroller of the amended estimated amount of total direct costs and the taxable year the credit will be claimed. After completion of the film production activity, a qualified film production entity shall apply to the Department for a tax credit certificate. The application shall be on a form required by the Secretary and shall include: proof of the total direct costs that qualify for the tax credit; and the number of employees hired and wages paid. Subject to subsections (f) and (h) of this section, the Secretary shall determine the total direct costs that qualify for the tax credit and issue a tax credit certificate for: except as provided in item (ii) of this paragraph, 28% of the total direct costs that qualify for the tax credit; and for a television series, 30% of the total direct costs that qualify for the tax credit. In accordance with § 2.5–109 of the Economic Development Article, the Department shall submit a report on film production activity in the State and the economic benefits to the State resulting from film production activity during the reporting period. Except as provided in paragraph (2) of this subsection, the Secretary may not issue tax credit certificates for credit amounts in the aggregate totaling more than: for fiscal year 2014, $25,000,000; for fiscal year 2015, $7,500,000; for fiscal year 2016, $7,500,000; for fiscal year 2019, $8,000,000; for fiscal year 2020, $11,000,000; for fiscal years 2021 through 2023, $12,000,000; for fiscal year 2024, $15,000,000; for fiscal year 2025, $17,500,000; and for fiscal year 2026 and each fiscal year thereafter, $12,000,000. If the aggregate credit amounts under the tax credit certificates issued by the Secretary total less than the maximum provided under paragraph (1) of this subsection in any fiscal year, any excess amount may be carried forward and issued under tax credit certificates in a subsequent fiscal year. The Secretary may not issue tax credit certificates for credit amounts totaling more than $10,000,000 in the aggregate for a single film production activity. For fiscal year 2019 and each fiscal year thereafter, the Secretary shall make 10% of the credit amount authorized under paragraph (1) of this subsection available for Maryland small or independent film entities. If the total amount of credits applied for by Maryland small or independent film entities is less than the amount made available under subparagraph (i) of this paragraph, the Secretary shall make available the unused amount of credits for use by qualified film production entities. Except as provided in paragraph (2) of this subsection, a qualified film production entity that receives a tax credit certificate under this section for a film production activity shall include: for a feature film project, a 5–second long static or animated logo that promotes the State in the end credits before the below–the–line crew crawl for the life of the project and a link to the State’s website on the project’s website; for a television series project, an embedded 5–second long static or animated logo that promotes the State during each broadcast worldwide for the life of the project and a link to the State’s website on the project’s website; or for any other project, the State logo at the end of each project and in online promotions. In lieu of including a State logo as required under paragraph (1) of this subsection, the qualified film production entity may offer alternative marketing opportunities to be evaluated by the Department to ensure that those opportunities offer equal or greater promotional value to the State. For a Maryland small or independent film entity to qualify as a film production entity: the estimated total direct costs incurred in the State shall exceed $25,000; and at least 50% of the filming of the film production activity must occur within the State. The Secretary shall determine the total direct costs that qualify for the tax credit and issue a tax credit certificate to a Maryland small or independent film entity for 28% of the total direct costs that qualify for the tax credit, not to exceed $125,000. The Department and the Comptroller jointly shall adopt regulations to carry out the provisions of this section and to specify criteria and procedures for the application for, approval of, and monitoring of continuing eligibility for the tax credit under this section.

In this section the following words have the meanings indicated. “Costs” means the costs to an individual or corporation for: security clearance administrative expenses incurred with regard to an employee in the State including, but not limited to: processing application requests for clearances for employees in the State; maintaining, upgrading, or installing computer systems in the State required to obtain federal security clearances; and training employees in the State to administer the application process; and construction and equipment costs incurred to construct or renovate a sensitive compartmented information facility (“SCIF”) located in the State as required by the federal government. “Department” means the Department of Commerce. “Secretary” means the Secretary of Commerce. “Small business” has the meaning stated in § 7–218 of this article. Subject to the limitations of this section, for a taxable year beginning after December 31, 2022, but before January 1, 2033, an individual or a corporation that employs not more than 500 employees may claim credits against the State income tax for: security clearance administrative expenses, not to exceed $200,000; expenses incurred for rental payments owed during the first year of a rental agreement for spaces leased in the State if the individual or corporation is a small business that performs security–based contracting, not to exceed $200,000; and Subject to paragraph (2) of this subsection, construction and equipment costs incurred to construct or renovate a single SCIF in an amount equal to the lesser of 50% of the costs or $200,000. The total amount of construction and equipment costs incurred to construct or renovate multiple SCIFs for which an individual or a corporation is eligible to claim as a credit against the State income tax is $500,000. By September 15 of the calendar year following the end of the taxable year in which the costs were incurred, an individual or a corporation shall submit an application to the Department for the credits allowed under subsection (b) of this section. The total amount of credits approved by the Department under subsection (b) of this section may not exceed $2,000,000 for any calendar year. If the total amount of credits applied for by all individuals and corporations under subsection (b) of this section exceeds the maximum specified under subparagraph (i) of this paragraph, the Department shall approve a credit under subsection (b) of this section for each applicant in an amount equal to the product of multiplying the credit applied for by the applicant times a fraction: the numerator of which is the maximum specified under subparagraph (i) of this paragraph; and the denominator of which is the total of all credits applied for by all applicants under subsection (b) of this section in the calendar year. By December 15 of the calendar year following the end of the taxable year in which the costs were incurred, the Department shall certify to the individual or corporation the amount of tax credits approved by the Department for the individual or corporation under this section. To claim the approved credits allowed under this section, an individual or a corporation shall: file an amended income tax return for the taxable year in which the costs were incurred; and attach a copy of the Department’s certification of the approved credit amount to the amended income tax return; or subject to subsection (d) of this section, attach a copy of the Department’s certification of the approved credit amount to an income tax return filed for any taxable year after the taxable year in which the costs were incurred. If the credit allowed for any taxable year under this section exceeds the total tax otherwise due, an individual or corporation may apply the excess as a credit against the State income tax for succeeding taxable years until the full amount of the excess is used. The Department, in consultation with the Comptroller, shall adopt regulations to carry out the provisions of this section. In accordance with § 2.5–109 of the Economic Development Article, the Department shall submit a report on the number of credits certified in the previous calendar year.

In this section the following words have the meanings indicated. “Cybersecurity business” means an entity organized for profit that is engaged primarily in the development of innovative and proprietary cybersecurity technology or the provision of cybersecurity service. “Cybersecurity service” means an activity that is associated with a category or subcategory identified under the Framework Core established by the National Institute of Standards and Technology’s Cybersecurity Framework. “Cybersecurity technology” means products or goods intended to detect or prevent activity intended to result in unauthorized access to, exfiltration of, manipulation of, or impairment to the integrity, confidentiality, or availability of an information system or information stored on or transiting an information system. “Department” means the Department of Commerce. “Panel” means the panel that the Department may establish under subsection (c) of this section composed of experts in the areas of cybersecurity technology and cybersecurity service. “Qualified buyer” means any entity that has fewer than 50 employees in the State and that is required to file an income tax return in the State. “Qualified seller” means a cybersecurity business that: has its headquarters and base of operations in the State; has less than $5,000,000 in annual revenue; is a minority–owned, woman–owned, veteran–owned, or service–disabled–veteran–owned business; or is located in a historically underutilized business zone designated by the United States Small Business Administration; owns or has properly licensed any proprietary cybersecurity technology; or provides a cybersecurity service; is in good standing; is current in the payment of all tax obligations to the State or any unit or subdivision of the State; and is not in default under the terms of any contract with, indebtedness to, or grant from the State or any unit or subdivision of the State. Subject to paragraphs (2) and (3) of this subsection, a qualified buyer may claim a credit against the State income tax in an amount equal to 50% of the cost incurred during the taxable year to purchase cybersecurity technology or a cybersecurity service from one or more qualified sellers. For any taxable year, the credit allowed under this section may not exceed $50,000 for each qualified buyer. For any taxable year, the aggregate credits claimed for cybersecurity technology or cybersecurity service purchased from a single qualified seller may not exceed $200,000. The Department, in consultation with the Maryland Technology Development Corporation, may establish a panel composed of experts in the areas of cybersecurity technology and cybersecurity service. The Department may establish the panel under service contracts with independent reviewers. The panel shall assist the Department in its determination as to whether a company is a qualified seller. A member of the panel is not eligible to receive any benefit, direct or indirect, from the tax credit under this section. Except as provided in subparagraph (ii) of this paragraph, Division II of the State Finance and Procurement Article does not apply to a service that the Department obtains under this section. The Department is subject to Title 12, Subtitle 4 of the State Finance and Procurement Article for services the Department obtains under this section. A qualified buyer eligible for the credit under this section may apply to the Department for a credit certificate that states the amount of the credit the qualified buyer may claim under subsection (b) of this section. A qualified buyer shall attach the credit certificate to the income tax return on which the qualified buyer claims the credit under subsection (b) of this section. Subject to paragraph (3) of this subsection, the Secretary of Commerce shall approve each application under paragraph (1) of this subsection that qualifies for a credit certificate. The total amount of the credit certificates approved by the Secretary of Commerce under this subsection may not exceed: for taxable year 2018, $2,000,000; and for taxable year 2019 and each taxable year thereafter, $4,000,000. For each taxable year, the Secretary of Commerce shall award 25% of the amount of tax credits authorized under subparagraph (i) of this paragraph to qualified buyers that purchase cybersecurity services. The Department may revoke its certification of a credit under this section if any representation made in connection with the application for the certification is determined by the Department to have been false. The revocation may be in full or in part as the Department may determine and, subject to paragraph (3) of this subsection, shall be communicated to the qualified buyer and the Comptroller. The qualified buyer shall have an opportunity to appeal any revocation to the Department before notification of the Comptroller. The Comptroller may make an assessment against the qualified buyer to recapture any amount of tax credit that the qualified buyer has already claimed. In accordance with § 2.5–109 of the Economic Development Article, the Department shall submit a report on the credit certificates awarded under this section for the calendar year. The Department and the Comptroller jointly shall adopt regulations to carry out this section and to specify criteria and procedures for application for, approval of, and monitoring continuing eligibility for the tax credit under this section.

In this section, “qualified vehicle” means a Class F (tractor) vehicle described under § 13–923 of the Transportation Article that is titled and registered in the State. Subject to the limitations of this section, an individual or a corporation may claim a credit against the State income tax for the expense of registering a qualified vehicle in the State. For any taxable year, the credit allowed under this section may not exceed the lesser of: $400 for each qualified vehicle; or the State income tax for that taxable year. The unused amount of the credit may not be carried over to any other taxable year.

In this section the following words have the meanings indicated. “Administration” means the Motor Vehicle Administration. “Qualified vehicle” means a Class F (tractor) vehicle described under § 13–923 of the Transportation Article that is titled and registered in the State. Subject to the limitations of this section, an individual or a corporation that obtains a tax credit certificate from the Administration may claim a credit against the State income tax for the expense of registering a qualified vehicle in the State during the taxable year. Subject to paragraph (2) of this subsection, on application by a taxpayer, the Administration shall issue a tax credit certificate in the amount of $400 for each qualified vehicle registered by the taxpayer during the taxable year. For any taxable year, the Administration may not issue an aggregate amount of tax credit certificates totaling more than: $10,000 to any one taxpayer; or $500,000 to all taxpayers. The Administration shall approve all applications that qualify for a tax credit certificate: on a first–come, first–served basis; and in a timely manner. For any taxable year, the credit allowed under this section may not exceed the State income tax for that taxable year. The unused amount of the credit may not be carried over to any other taxable year. On or before January 31 each taxable year, the Administration shall report to the Comptroller on the tax credit certificates issued under this section during the prior taxable year. The Administration, in consultation with the Comptroller, shall adopt regulations to carry out this section.

In this section the following words have the meanings indicated. “Department” means the Department of Housing and Community Development. “Donation” means an irrevocable gift worth $500 or more of: cash; or publicly traded securities. “Eligible community foundation” means an organization that: is exempt from taxation under § 501(c)(3) of the Internal Revenue Code; is commonly known as a community trust, fund, endowment, or foundation or by another similar name that conveys the concept of a capital or endowment fund to support charitable activities in the community or area that it serves; satisfies the public support test of § 170(b)(1)(A)(vi) of the Internal Revenue Code and regulations adopted under that section; and is in compliance with national standards for United States community foundations established by the Community Foundations National Standards Board within the Council on Foundations. “Qualified permanent endowment fund” means a fund that: is held in perpetuity by an eligible community foundation; is used for the benefit of charitable causes in the State; and has an annual spending rate of 5% or less calculated using a 12–quarter trailing average of the total amount of the fund. Subject to the limitations of this section, for the taxable year in which a taxpayer makes a donation to a qualified permanent endowment fund at an eligible community foundation, the taxpayer may claim a credit against the State income tax in the amount stated on the tax credit certificate issued under subsection (c) of this section. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, any unused credit may be carried forward and applied for succeeding taxable years until the earlier of: the full amount of the credit is used; or the expiration of the fifth year after the taxable year for which the credit was allowed. On application by a taxpayer, the Department shall issue a credit certificate in the amount of 25% of a proposed donation to a qualified permanent endowment fund at an eligible community foundation that meets the requirements of this section. The application shall contain: the names of the taxpayer, the eligible community foundation, and the qualified permanent endowment fund to which the donation will be made; the taxable year in which the donation will be made; the amount of the donation; and any other information that the Department requires. For any taxable year, the maximum amount of tax credit stated in the tax credit certificate may not exceed $50,000. The Department shall: reserve for each taxable year at least 10% of the available credits for donations of $30,000 or less; and approve all applications that qualify for a tax credit certificate under this subsection: on a first–come, first–served basis; and in a timely manner. For each taxable year, the total amount of tax credit certificates certified by the Department under this section may not exceed $250,000. If the aggregate amount of tax credit certificates authorized under this section during a taxable year total less than the amount authorized under this paragraph, any excess amount may be authorized under tax credit certificates for the next taxable year. On or before January 31 of each taxable year, the Department shall report to the State Department of Assessments and Taxation and the Comptroller the donations that the Department has approved for tax credit certificates under this section during the prior taxable year. The Department shall adopt regulations to carry out the provisions of this section, including the criteria and procedures for application for, approval of, and monitoring eligibility for the tax credit authorized under this section.

In this section the following words have the meanings indicated. “Department” means the Maryland Department of Health. “Licensed physician” means an individual who is licensed to practice medicine under Title 14 of the Health Occupations Article. “Preceptorship program” means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs an enrolled student of a Liaison Committee on Medical Education–accredited medical school or an individual in a postgraduate medical training program with a licensed physician who meets the qualifications as a preceptor. Subject to the limitations of this section, a licensed physician may claim a credit against the State income tax in the amount stated on the tax credit certificate issued under subsection (c) of this section for the taxable year in which the licensed physician served without compensation as a physician preceptor in a preceptorship program authorized by an accredited medical school and worked: a minimum of three rotations, each consisting of 90 hours of community–based clinical training; and in an area of the State identified as having a health care workforce shortage by the Department, in consultation with the Governor’s Workforce Development Board. The total amount of the credit allowed under this section for any taxable year may not exceed the State income tax imposed for that taxable year. Any unused amount of the credit for any taxable year may not be carried over to any other taxable year. On application by a licensed physician, the Department shall issue a credit certificate in the amount of $1,000 for each student rotation of the minimum number of hours required under subsection (b)(1)(i) of this section for which the licensed physician served as a physician preceptor without compensation. The application shall contain: the name of the licensed physician; information identifying the physician preceptorship in which the licensed physician participated; the number and names of the students for whom the individual served as a physician preceptor without compensation; and any other information that the Department requires. For any taxable year, the amount of tax credit stated in the tax credit certificate may not exceed $10,000. The Department shall: approve all applications that qualify for a tax credit certificate under this subsection on a first–come, first–served basis; and notify a taxpayer within 45 days of receipt of the taxpayer’s application of its approval or denial. For each taxable year, the total amount of tax credit certificates that may be issued by the Department under this section may not exceed $100,000. Subject to the limitation under subparagraph (iii) of this paragraph, if the aggregate amount of tax credit certificates issued under this section during a taxable year total less than the amount authorized under this paragraph, any excess amount may be issued under tax credit certificates in the next taxable year. The aggregate amount carried forward from all prior fiscal years in accordance with subparagraph (ii) of this paragraph may not exceed $100,000. On or before March 1 of each taxable year, the Department shall: report to the Comptroller on the tax credit certificates issued under this section during the prior taxable year; and report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the utilization of the credit established under this section. The Department, in consultation with the Governor’s Workforce Development Board, shall adopt regulations to carry out the provisions of this section, including the criteria and procedures for application for, approval of, and monitoring eligibility for the tax credit authorized under this section.

In this section the following words have the meanings indicated. “Department” means the Maryland Department of Health. “Licensed physician” means an individual who is licensed to practice medicine under Title 14 of the Health Occupations Article. “Nurse practitioner” has the meaning stated in § 8–101 of the Health Occupations Article. “Preceptorship program” means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs a nurse practitioner student enrolled in a nursing education program that is recognized by the State Board of Nursing with a nurse practitioner or licensed physician who meets the qualifications as a preceptor. Subject to the limitations of this section, a nurse practitioner or licensed physician may claim a credit against the State income tax in the amount stated on the tax credit certificate issued under subsection (c) of this section for the taxable year in which the nurse practitioner or licensed physician served without compensation as a preceptor in a preceptorship program approved by the State Board of Nursing and worked: a minimum of three rotations, each consisting of at least 90 hours of community–based clinical training; and in an area of the State identified as having a health care workforce shortage by the Department, in consultation with the Governor’s Workforce Development Board. The total amount of the credit allowed under this section for any taxable year may not exceed the State income tax imposed for that taxable year. Any unused amount of the credit for any taxable year may not be carried over to any other taxable year. On application by a nurse practitioner or licensed physician, the Department shall issue a credit certificate in the amount of $1,000 for each nurse practitioner student rotation of the minimum number of hours required under subsection (b)(1)(i) of this section for which the nurse practitioner or licensed physician served as a preceptor without compensation. The application shall contain: the name of the nurse practitioner or licensed physician; information identifying the preceptorship in which the nurse practitioner or licensed physician participated; the number and names of the nurse practitioner students for whom the individual served as a preceptor without compensation; and any other information that the Department requires. For any taxable year, the amount of tax credit stated in the tax credit certificate may not exceed $10,000. The Department shall: approve all applications that qualify for a tax credit certificate under this subsection on a first–come, first–served basis; and notify a taxpayer within 45 days of receipt of the taxpayer’s application of its approval or denial. For each taxable year, the total amount of tax credit certificates that may be issued by the Department under this section may not exceed the lesser of: the total funds in the Nurse Practitioner Preceptorship Tax Credit Fund for that year; or $100,000. If the aggregate amount of tax credit certificates issued under this section during a taxable year total less than the amount authorized under this paragraph, any excess amount may be issued under tax credit certificates in the next taxable year. In this section, “Fund” means the Nurse Practitioner Preceptorship Tax Credit Fund established under paragraph (2) of this subsection. There is a Nurse Practitioner Preceptorship Tax Credit Fund. The Department shall administer the Fund. The purpose of the Fund is to offset the costs of the tax credit available under this section. The Fund is a special continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: revenue distributed to the Fund under § 8–206 of the Health Occupations Article; money appropriated in the State budget to the Fund; and any other money from any other source accepted for the benefit of the Fund. The money in the Fund shall be invested and reinvested by the State Treasurer, and interest and earnings shall be credited to the General Fund of the State. Except as otherwise provided in this paragraph, money credited or appropriated to the Fund shall remain in the Fund. Within 15 days after the end of each calendar quarter, the Department shall notify the Comptroller as to each credit certificate issued during the quarter. On notification that a credit certificate has been issued by the Department, the Comptroller shall transfer an amount equal to the credit amount stated in the tax credit certificate from the Fund to the General Fund of the State. On or before March 1 each taxable year, the Department shall: report to the Comptroller on the tax credit certificates issued under this section during the prior taxable year; and report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the utilization of the credit established under this section. The Department, in consultation with the Governor’s Workforce Development Board, shall adopt regulations to carry out the provisions of this section, including the criteria and procedures for application for, approval of, and monitoring eligibility for the tax credit authorized under this section.

In this section the following words have the meanings indicated. “Advanced practice registered nurse” has the same meaning stated in § 8–101 of the Health Occupations Article. “Department” means the Maryland Department of Health. “Licensed practical nurse” has the meaning stated in § 8–101 of the Health Occupations Article. “Preceptorship program” means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs a licensed practical nurse or registered nurse student enrolled in a nursing education program that is recognized by the State Board of Nursing with a licensed practical nurse, advanced practice registered nurse, or registered nurse who meets the qualifications as a preceptor. “Registered nurse” has the meaning stated in § 8–101 of the Health Occupations Article. Subject to the limitations of this section, a licensed practical nurse, advanced practice registered nurse, or registered nurse may claim a credit against the State income tax in the amount stated on the tax credit certificate issued under subsection (c) of this section for the taxable year in which the licensed practical nurse, advanced practice registered nurse, or registered nurse served without compensation as a preceptor in a preceptorship program approved by the State Board of Nursing and worked: a minimum of three rotations, each consisting of at least 90 hours of community–based clinical training; and in an area of the State identified as having a health care workforce shortage by the Department, in consultation with the Governor’s Workforce Development Board. The total amount of the credit allowed under this section for any taxable year may not exceed the State income tax imposed for that taxable year. Any unused amount of the credit for any taxable year may not be carried over to any other taxable year. On application by a licensed practical nurse, advanced practice registered nurse, or registered nurse, the Department shall issue a credit certificate in the amount of $1,000 for each student rotation of the minimum number of hours required under subsection (b)(1)(i) of this section for which the licensed practical nurse, advanced practice registered nurse, or registered nurse served as a preceptor without compensation. The application shall contain: the name of the applicant; information identifying the preceptorship in which the applicant participated; the number and names of the students for whom the individual served as a preceptor without compensation; and any other information that the Department requires. For any taxable year, the amount of tax credit stated in the tax credit certificate may not exceed $10,000. The Department shall: approve all applications that qualify for a tax credit certificate under this subsection on a first–come, first–served basis; and notify a taxpayer within 45 days of receipt of the taxpayer’s application of its approval or denial. For each taxable year, the total amount of tax credit certificates that may be issued by the Department under this section may not exceed the lesser of: the total funds in the Licensed Practical Nurse and Registered Nurse Preceptorship Tax Credit Fund for that year; or $100,000. If the aggregate amount of tax credit certificates issued under this section during a taxable year totals less than the amount authorized under this paragraph, any excess amount may be issued under tax credit certificates in the next taxable year. In this section, “Fund” means the Licensed Practical Nurse and Registered Nurse Preceptorship Tax Credit Fund established under paragraph (2) of this subsection. There is a Licensed Practical Nurse and Registered Nurse Preceptorship Tax Credit Fund. The Department shall administer the Fund. The purpose of the Fund is to offset the costs of the tax credit available under this section. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: federal funding provided under: the federal Coronavirus Aid, Relief, and Economic Security Act; the federal Consolidated Appropriations Act, 2021; or any other federal COVID–19 pandemic relief funding; money appropriated in the State budget to the Fund; and any other money from any other source accepted for the benefit of the Fund. The money in the Fund shall be invested and reinvested by the State Treasurer, and interest and earnings shall be credited to the General Fund of the State. Except as otherwise provided in this paragraph, money credited or appropriated to the Fund shall remain in the Fund. Within 15 days after the end of each calendar quarter, the Department shall notify the Comptroller as to each credit certificate issued during the quarter. On notification that a credit certificate has been issued by the Department, the Comptroller shall transfer an amount equal to the credit amount stated in the tax credit certificate from the Fund to the General Fund of the State. On or before January 31 each taxable year, the Department shall: report to the Comptroller on the tax credit certificates issued under this section during the prior taxable year; and report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the utilization of the credit established under this section. The Department, in consultation with the Governor’s Workforce Development Board, shall adopt regulations to carry out the provisions of this section, including the criteria and procedures for application for, approval of, and monitoring eligibility for the tax credit authorized under this section.

In this section the following words have the meanings indicated. “Commission” means the Maryland Higher Education Commission. “Qualified taxpayer” means an individual who has: incurred at least $20,000 in undergraduate or graduate student loan debt or both; and has at least $5,000 in outstanding undergraduate or graduate student loan debt or both when submitting an application under subsection (c) of this section. Subject to the limitations of this section, a qualified taxpayer may claim a credit against the State income tax for the taxable year in which the Commission certifies a tax credit under this section. By September 15 of each year, an individual shall submit an application to the Commission for the credit allowed under this section. The individual shall submit with the application an assurance that the individual will use any credit approved under this section for the repayment of the individual’s undergraduate or graduate student loan debt or both as soon as practicable. Except as provided in subparagraph (iv) of this paragraph, the amount of the credit claimed under this section that was not used to repay the individual’s undergraduate or graduate student loan debt shall be recaptured if the individual does not use the entire credit approved under this section for the repayment of the individual’s undergraduate or graduate student loan debt or both within 3 years from the close of the taxable year for which the credit is claimed. The individual who claimed the credit shall pay the unused amount of the credit claimed as taxes payable to the State for the taxable year in which the event requiring recapture of the credit occurs. The Commission may grant an extension of the period within which the individual is required to use the credit claimed for the repayment of the individual’s undergraduate or graduate student loan debt if the individual was unable to repay the student loan debt due to: a period of forbearance related to litigation concerning the federal Saving on a Valuable Education (SAVE) student loan repayment plan; the inability of the individual to change from one income–based repayment plan to another plan due to understaffing at the U.S. Department of Education; or a period of forbearance during which the individual was awaiting an agreement under the federal Public Service Loan Forgiveness Buyback program and unable to make any student loan debt payments. By December 15 of each year the Commission shall certify to the individual the amount of any tax credit approved by the Commission under this section, not to exceed $5,000. For tax year 2025, the total amount of tax credits approved by the Commission under this section may not exceed $16,000,000. For tax year 2026, the total amount of tax credits approved by Commission under this section may not exceed $9,000,000. For any taxable year after 2026, the total amount of tax credits approved by the Commission under this section may not exceed $18,000,000. Except as provided in subparagraph (ii) of this paragraph, the Commission shall reserve $9,000,000 of the tax credits authorized under paragraph (3) of this subsection for the following individuals in the following order of priority: State employees who graduated from institutions of higher education in the State where at least 40% of the attendees are eligible to receive federal Pell Grants; and all other State employees not described under item 1 of this subparagraph. If the total amount of tax credits applied for by individuals described under subparagraph (i) of this paragraph is less than $9,000,000 for a taxable year, the Commission may make available the unused amount of credits for use by other qualified taxpayers. To claim the tax credit allowed under this section, an individual shall attach a copy of the Commission’s certification of the approved credit amount to the income tax return. Subject to subsection (c)(4) of this section, the Commission shall prioritize tax credit recipients and amounts based on the following criteria: whether the qualified taxpayers are graduates from institutions of higher education in the State where at least 40% of the attendees are eligible to receive federal Pell Grants; and in an order of priority determined by the Commission, whether the qualified taxpayers: have higher debt burden to income ratios; graduated from an institution of higher education located in the State; did not receive a tax credit in a prior year; or were eligible for in–State tuition. If the tax credit allowed under this section in any taxable year exceeds the total tax otherwise payable by the qualified taxpayer for that taxable year, the qualified taxpayer may claim a refund in the amount of the excess. The Commission shall establish and implement by September 1, 2024, an outreach and marketing plan to: make eligible taxpayers aware of the availability of the tax credit provided under this section; and encourage institutions of higher education in the State to advise new graduates, particularly those with an interest in public service, of the availability of the tax credit provided under this section. On or before December 1 each year, the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on: the number of applicants for the tax credit authorized under this section; the number and amounts of tax credits awarded under this section to qualified taxpayers; a breakdown of the age, gender, race, income, and counties of residency of qualified taxpayers who receive the credit; and any additional information that the Commission deems relevant. On or before January 1, 2026, the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly recommendations for changes to statute or regulations that would better target the allocation of tax credits under this program. The Commission shall adopt regulations to carry out the provisions of this section. The tax credit under this section shall be referred to as the Student Loan Debt Relief Tax Credit.

In this section the following words have the meanings indicated. “Business entity” has the meaning stated in § 6–801 of the Economic Development Article. “Department” means the Department of Commerce. “Eligible project” has the meaning stated in § 6–801 of the Economic Development Article. “Existing business entity” has the meaning stated in § 6–801 of the Economic Development Article. “New business entity” has the meaning stated in § 6–801 of the Economic Development Article. “Qualified business entity” has the meaning stated in § 6–801 of the Economic Development Article. “Qualified position” has the meaning stated in § 6–801 of the Economic Development Article. “Tier I area” has the meaning stated in § 6–801 of the Economic Development Article. “Tier II area” has the meaning stated in § 6–801 of the Economic Development Article. Subject to the limitations of this section, an individual or corporation that is a new business entity that operates an eligible project in a Tier I area or an existing business entity that operates an eligible project may claim a credit against the State income tax equal to the amount stated in the final tax credit certificate approved by the Department for an eligible project. The amount of the credit authorized under paragraph (1) of this subsection is equal to the product of: if the qualified business entity received a certificate under § 6–805 of the Economic Development Article before June 1, 2022, 5.75%; or if the qualified business entity received a certificate under § 6–805 of the Economic Development Article on or after June 1, 2022, 4.75%; and the total amount of wages paid for each qualified position at an eligible project. If the tax credit allowed under this section in any taxable year exceeds the total tax otherwise payable by the qualified business entity for that taxable year, the qualified business entity may claim a refund in the amount of the excess. On enrollment in the More Jobs for Marylanders Program established under Title 6, Subtitle 8 of the Economic Development Article, a qualified business entity shall apply to the Department for a tax credit certificate. The application shall be in the form and shall contain the information the Department requires. Subject to subsections (d) and (e) of this section, the Department may issue a tax credit certificate to a qualified business entity in an amount not to exceed the amount determined under subsection (b)(2) of this section. In determining the allocation of the aggregate tax credit amounts available in a fiscal year as provided under subsection (d) of this section, the Department shall give priority to applications for eligible projects in a Tier I area, as defined under § 6–801 of the Economic Development Article. In this subsection, “Reserve Fund” means the More Jobs for Marylanders Tax Credit Reserve Fund established under paragraph (2) of this subsection. There is a More Jobs for Marylanders Tax Credit Reserve Fund that is a special continuing, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The money in the Reserve Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall be credited to the General Fund. Subject to the limitations of this subsection, the Department shall issue an initial tax credit certificate in an amount equal to a percentage of total wages paid for each qualified position at an eligible project as calculated under subsection (b)(2) of this section. An initial tax credit certificate issued under this subsection shall state the maximum amount of tax credit for which the qualified business entity is eligible. Except as otherwise provided in this subparagraph, for any fiscal year, the Department may not issue initial tax credit certificates for credit amounts in the aggregate totaling more than: with respect to qualified business entities provided a certificate under § 6–805 of the Economic Development Article before June 1, 2022, $9,000,000 in a fiscal year; and with respect to qualified business entities provided a certificate under § 6–805 of the Economic Development Article on or after June 1, 2022, $5,000,000 in a fiscal year. If the aggregate credit amounts under initial tax credit certificates issued in a fiscal year total less than the maximum provided under subsubparagraph 1 of this subparagraph, any excess amount shall remain in the Reserve Fund. For any fiscal year, if funds are transferred from the Reserve Fund under the authority of any provision of law other than under paragraph (4) of this subsection, the maximum credit amounts in the aggregate for which the Department may issue initial tax credit certificates shall be reduced by the amount transferred. For fiscal year 2019 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation to the Reserve Fund in an amount that is no less than the amount the Department reports is necessary under subsection (e) of this section to: maintain the current level of manufacturing activity in the State; attract new manufacturing activity to the State; and attract new businesses to and encourage the expansion of existing businesses within opportunity zones in the State. Notwithstanding the provisions of § 7–213 of the State Finance and Procurement Article, the Governor may not reduce an appropriation to the Reserve Fund in the State budget as approved by the General Assembly. Subject to subsubparagraphs 2 and 3 of this subparagraph, based on an amount equal to a percentage of the total actual wages paid for each qualified position at an eligible project as calculated under subsection (b)(2) of this section, the Department shall issue a final tax credit certificate to the qualified business entity. For fiscal year 2027, the total amount of final tax credit certificates issued by the Department may not exceed $15,000,000. If the total amount of final tax credit certificates the Department is required to issue under this subparagraph exceeds $15,000,000 in fiscal year 2027, the Department shall issue final tax credit certificates to qualified business entities on a pro rata basis. Except as provided in this paragraph, money appropriated to the Reserve Fund shall remain in the Fund. Within 15 days after the end of each calendar quarter, the Department shall notify the Comptroller as to each final credit certificate issued during the quarter: the maximum credit amount stated in the initial tax credit certificate for the qualified business entity; and the final certified credit amount for the qualified business entity. On notification that a final credit amount has been certified, the Comptroller shall transfer from the Reserve Fund to the General Fund: for fiscal year 2027, an amount equal to the credit amount stated in the final tax credit certificate for the qualified business entity; and for fiscal year 2028 and each fiscal year thereafter, an amount equal to the credit amount stated in the initial tax credit certificate for the qualified business entity. On or before July 1 each year, the Department shall report to the Governor and, subject to § 2–1257 of the State Government Article, the General Assembly on the amount of tax credits necessary to: maintain the current level of manufacturing activity in the State; attract new manufacturing activity to the State; and attract new businesses to and encourage the expansion of existing businesses within opportunity zones in the State. The Department and the Comptroller jointly shall adopt regulations to carry out the provisions of this section and to specify criteria and procedures for the application for, approval of, and monitoring of continuing eligibility for the tax credit under this section.

In this section the following words have the meanings indicated. “Accessibility and universal visitability features” means components of renovation to an existing home that improves access to or within the home for individuals with disabilities. “Department” means the Department of Housing and Community Development. “Disability” has the meaning stated in § 7–101 of the Human Services Article. “Qualified expenses” means costs incurred to install accessibility and universal visitability features to or within a home. Subject to the limitations of this section, an individual may claim a credit against the State income tax in an amount equal to 50% of the qualified expenses incurred during the taxable year to renovate an existing home with accessibility and universal visitability features. For any taxable year, the credit allowed under this section may not exceed the lesser of: $5,000; or the State income tax imposed for the taxable year calculated before the application of the credits allowed under this section and under §§ 10–701 and 10–701.1 of this subtitle but after the application of any other credit allowed under this subtitle. The unused amount of the credit may not be carried over to any other taxable year. By June 1 of the calendar year following the end of the taxable year in which the qualified expenses were incurred, an individual shall submit an application to the Department for the credits allowed under subsection (b) of this section. The total amount of credits approved by the Department under subsection (b) of this section may not exceed $1,000,000 for any calendar year. If the total amount of credits applied for by all individuals under subsection (b) of this section exceeds the maximum specified under paragraph (2) of this subsection, the Department shall approve a credit for each applicant in an amount equal to the product of multiplying the credit applied for by the applicant times a fraction: the numerator of which is the maximum specified under paragraph (2) of this subsection; and the denominator of which is the total of all credits applied for by all applicants under subsection (b) of this section in the calendar year. By August 1 of the calendar year following the end of the taxable year in which the qualified expenses were incurred, the Department shall certify to the individual the amount of tax credits approved by the Department for the individual under subsection (b) of this section. To claim the approved credits allowed under this section, an individual shall: file an amended income tax return for the taxable year in which the qualified expenses were incurred; and attach a copy of the Department’s certification of the approved credit amount to the amended income tax return. The Department shall adopt regulations to carry out the provisions of this section, including the criteria and procedures for application for, approval of, and monitoring eligibility for the tax credit authorized under this section.

In this section the following words have the meanings indicated. “Certified organic produce” means an eligible food donation that is certified under Title 10, Subtitle 14 of the Agriculture Article as an organically produced commodity. “Eligible food donation” means fresh farm products for human consumption. “Qualified farm” means a farm business that is located in the State. “Secretary” means the Secretary of Agriculture or the Secretary’s designee. “Tax credit certificate administrator” means a person or an organization that is authorized by the State Department of Agriculture under subsection (e) of this section to receive eligible food donations. Subject to the limitations of this section, for a taxable year beginning after December 31, 2016, a qualified farm may claim a credit against the State income tax in the amount stated on any tax credit certificates issued to the qualified farm during the taxable year. Except as provided in subparagraph (ii) of this paragraph, for any taxable year, the aggregate amount of credits authorized under this subsection for a qualified farm may not exceed $5,000. For any taxable year, the Secretary may increase the credit limitation under subparagraph (i) of this paragraph for a qualified farm by an amount not to exceed $5,000. If the credit allowed under this section exceeds the State income tax, any unused credit may be carried forward and applied for succeeding taxable years until the earlier of: the date on which the full amount of the credit is used; or the date of the expiration of the 5th year after the taxable year for which the credit was allowed. A qualified farm that makes an eligible food donation is eligible for a tax credit certificate with a stated tax credit amount equal to 100% of the value of the eligible food donation. A qualified farm that makes a donation of certified organic produce is eligible for a tax credit certificate with a stated tax credit amount equal to 100% of the value of the donated certified organic produce. Each week the Secretary shall establish and publish the categories and value of certified organic produce and eligible food donations. Except as provided in paragraph (3) of this subsection, the value of each category of certified organic produce and eligible food donations is the wholesale value of the category established by the State Department of Agriculture and based on United States Department of Agriculture reports on Maryland products sold at Maryland markets. If the Secretary determines that the value established under paragraph (2) of this subsection is insufficient to pay for the cost of harvesting a category of certified organic produce or eligible food donation, the Secretary may establish a value in excess of the value under paragraph (2) of this subsection. The Secretary, in consultation with the Comptroller, shall establish a process to certify a person or an organization to act as a tax credit certificate administrator. A tax credit certificate administrator that receives a donation of certified organic produce or an eligible food donation from a qualified farm shall issue the qualified farm a tax credit certificate. The tax credit certificate shall: state the date of the donation; identify the qualified farm; describe the type of donation; state the weight of the donation; identify the value of the donation; state the maximum amount of the tax credit for which the qualified farm is eligible; and provide any other information the State Department of Agriculture or Comptroller requires. The Secretary, in consultation with the Comptroller, shall prepare tax credit certificate forms for the use of the tax credit certificate administrators. Within 30 days after issuing a tax credit certificate, the tax credit certificate administrator shall provide a copy of the tax credit certificate to the Secretary and the Comptroller. The Secretary shall notify each tax credit certificate administrator to stop issuing tax credit certificates if the amount of tax credit certificates issued during the fiscal year equals or exceeds the amount of tax credit certificates authorized to be issued during the fiscal year under subsection (f) of this section less $50,000. The Secretary, in consultation with the Comptroller, shall adopt regulations providing procedures to issue the remaining $50,000 of tax credit certificates under this paragraph. For each fiscal year, the total amount of tax credit certificates issued under this section may not exceed $100,000. If the total amount of tax credit certificates issued during any fiscal year totals less than the maximum amount provided under paragraph (1) of this subsection, any excess amount may be carried forward and issued under tax credit certificates in a subsequent fiscal year. On or before January 1, 2018, and January 1 each year thereafter, the Secretary, in consultation with the Comptroller, shall submit a report to the Governor and, subject to § 2–1257 of the State Government Article, the General Assembly on the use and impact of the tax credit established under this section. The Secretary, in consultation with the Comptroller, shall adopt regulations to administer this section.

In this section, “qualified expenses” means expenses incurred to butcher and process an antlerless deer for human consumption. Subject to the limitations of this section, an individual who hunts and harvests an antlerless deer may claim a credit against the State income tax for up to $75 of the qualified expenses incurred by the individual if: the hunting and harvesting of the deer complies with State hunting laws and regulations; and the individual donates the processed deer meat to a venison donation program administered by an organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code. For any taxable year, the total amount of credits that an individual may claim under this section may not exceed $600, unless the individual harvested each deer for which the credits are claimed in accordance with a deer management permit. The unused amount of the credit for any taxable year may not be carried over to any other taxable year. An individual who claims the credit under this section shall have the immunity from liability described under § 5–634 of the Courts Article for donated food. On or before January 31 each year, each venison donation program that accepts a donation under this section shall report to the Comptroller the following information for the immediately preceding taxable year: the name and home address of each donor who intended to claim the income tax credit under this section; and the number of deer donated by each donor who intended to claim the income tax credit under this section.

In this section the following words have the meanings indicated. “Qualified workforce housing project” has the meaning stated in § 4–2501 of the Housing and Community Development Article. “Secretary” means the Secretary of Housing and Community Development. An individual or a corporation may claim a credit against the State income tax in the amount determined under subsection (c) of this section for a qualified workforce housing project. The credit under this section equals the amount determined under paragraph (2) of this subsection for each qualified workforce housing project. Except as provided in subparagraph (ii) of this paragraph, the amount allowed under paragraph (1) of this subsection for each qualified workforce housing project equals the amount stated in the final credit certificate issued by the Secretary under Title 4, Subtitle 25 of the Housing and Community Development Article. The credit amount allowed for a project under subparagraph (i) of this paragraph may be claimed in full for the first taxable year the project is placed in service. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, an individual or a corporation may apply the excess as a credit against the State income tax for succeeding taxable years until the earlier of: the full amount of the excess is used; or the expiration of the ninth taxable year after the taxable year in which the final credit certificate was issued. An individual or a corporation claiming the State tax credit for a qualified workforce housing project shall submit with the individual’s or corporation’s income tax return a copy of the final credit certificate for the project issued by the Secretary under Title 4, Subtitle 25 of the Housing and Community Development Article. The Secretary, in consultation with the Comptroller, may adopt regulations providing for the recapture of the State tax credits allowed under this section for a qualified workforce housing project that fails to continue to meet the requirements of Title 4, Subtitle 25 of the Housing and Community Development Article. An individual or a corporation may not claim the credit allowed under this section for a project for any taxable year in which the owner of the project is in default under any regulatory agreement required with respect to the project under § 4–2502 of the Housing and Community Development Article.

In this section the following words have the meanings indicated. “Donation” means an irrevocable gift of cash. “Institution of higher education” means Bowie State University, Coppin State University, Morgan State University, or University of Maryland Eastern Shore. “Qualified permanent endowment fund” means a fund that is: held in perpetuity by an institution of higher education; and used to benefit the institution of higher education or its students. Subject to the limitations of this section, for the taxable year in which a taxpayer makes a donation to a qualified permanent endowment fund at an institution of higher education, the taxpayer may claim a credit against the State income tax in the amount stated on the tax credit certificate issued under subsection (c) of this section. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, any unused credit may be carried forward and applied to succeeding taxable years until the full amount of the credit is used. On application by a taxpayer, the Comptroller shall issue a credit certificate in the amount of 25% of a proposed donation to a qualified permanent endowment fund at an institution of higher education. The application shall contain: the names of the taxpayer, the institution of higher education, and the qualified permanent endowment fund to which the donation will be made; the taxable year in which the donation will be made; the amount of the donation; and any other information that the Comptroller requires. The Comptroller shall approve all applications that qualify for a tax credit certificate under this subsection: on a first–come, first–served basis; and in a timely manner. For each taxable year, the total amount of tax credit certificates certified by the Comptroller under this section may not exceed $240,000. The Comptroller shall make available 25% of the amount of credits authorized under subparagraph (i) of this paragraph for donations to qualified permanent endowment funds at each institution of higher education. If the total amount of tax credit certificates certified under this section for an institution of higher education during a taxable year is less than the amount made available for the institution of higher education under this subparagraph, any excess amount may be certified under tax credit certificates for the institution of higher education for the next taxable year. The Comptroller shall adopt regulations to carry out the provisions of this section, including the criteria and procedures for application for, approval of, and monitoring eligibility for the tax credit authorized under this section.

In this section the following words have the meanings indicated. “Qualified child” means a dependent of a taxpayer, if the dependent: is a dependent for purposes of § 152 of the Internal Revenue Code in effect on December 31, 2024; and is under the age of 6 years; or is under the age of 17 years; and is a child with a disability, as defined under § 8–401 of the Education Article. “Taxpayer” means: an individual filing an income tax return; or a married couple filing a joint income tax return. A taxpayer who is a resident and has federal adjusted gross income lower than the threshold amount of $15,000 may claim a credit against the State income tax for each qualified child in an amount equal to $500. The amount of the credit shall be reduced by $50 for each $1,000, or fraction thereof, by which the taxpayer’s federal adjusted gross income exceeds the threshold amount, except that the reduction cannot reduce the credit below zero. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, the taxpayer may claim a refund in the amount of the excess.

In this section the following words have the meanings indicated. “Department” means the Maryland Department of Health. “Health care practitioner” means an individual who: is licensed to practice medicine under Title 14 of the Health Occupations Article; is a physician assistant, as defined in § 15–101 of the Health Occupations Article; or is a registered nurse practitioner, as defined in § 8–101 of the Health Occupations Article. “Preceptorship program” means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs an enrolled student of a physician assistant program in the State with a health care practitioner who meets the qualifications of a preceptor. Subject to the limitations of this section, a health care practitioner may claim a credit against the State income tax in the amount stated on the tax credit certificate issued under subsection (c) of this section for the taxable year in which the health care practitioner served without compensation as a physician assistant preceptor in a preceptorship program approved by the Department and worked: a minimum of three rotations, each consisting of at least 100 hours of community–based clinical training in family medicine, general internal medicine, or general pediatrics; and in an area of the State identified as having a health care workforce shortage by the Department, in consultation with the Governor’s Workforce Development Board. The total amount of the credit allowed under this section for any taxable year may not exceed the State income tax imposed for that taxable year. Any unused amount of the credit for any taxable year may not be carried over to any other taxable year. On application by a health care practitioner, the Department shall issue a tax credit certificate in the amount of $1,000 for each physician assistant student rotation of the minimum number of hours required under subsection (b)(1)(i) of this section for which the health care practitioner served as a physician assistant preceptor without compensation. The application shall contain: the name of the health care practitioner; information identifying the physician assistant preceptorship in which the health care practitioner participated; the number and names of the students for whom the individual served as a preceptor without compensation; and any other information that the Department requires. For any taxable year, the amount of tax credit stated in the tax credit certificate may not exceed $10,000. The Department shall: approve all applications that qualify for a tax credit certificate under this subsection on a first–come, first–served basis; and notify an individual within 45 days after receipt of the individual’s application of its approval or denial. For each taxable year, the total amount of tax credit certificates that may be issued by the Department under this section may not exceed the lesser of: the total funds in the Physician Assistant Preceptorship Tax Credit Fund for that year; or $100,000. If the aggregate amount of tax credit certificates issued under this section during a taxable year totals less than the amount authorized under this paragraph, any excess amount may be issued under tax credit certificates in the next taxable year. In this subsection, “Fund” means the Physician Assistant Preceptorship Tax Credit Fund established under paragraph (2) of this subsection. There is a Physician Assistant Preceptorship Tax Credit Fund. The Department shall administer the Fund. The purpose of the Fund is to offset the costs of the tax credit available under this section. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: revenue distributed to the Fund under § 15–206 of the Health Occupations Article; money appropriated in the State budget to the Fund; and any other money from any other source accepted for the benefit of the Fund. The money in the Fund shall be invested and reinvested by the State Treasurer, and interest and earnings shall be credited to the General Fund of the State. Except as otherwise provided in this paragraph, money credited or appropriated to the Fund shall remain in the Fund. Within 15 days after the end of each calendar quarter, the Department shall notify the Comptroller as to each credit certificate issued during the quarter. On notification that a credit certificate has been issued by the Department, the Comptroller shall transfer an amount equal to the credit amount stated in the tax credit certificate from the Fund to the General Fund of the State. On or before March 1 each taxable year, the Department shall: report to the Comptroller on the tax credit certificates issued under this section during the prior taxable year; and report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the utilization of the credit established under this section. The Department, in consultation with the Governor’s Workforce Development Board, shall adopt regulations to carry out the provisions of this section, including the criteria and procedures for application for, approval of, and monitoring eligibility for the tax credit authorized under this section.

In this section, “nonprofit organization” has the meaning stated in § 1–101 of the Housing and Community Development Article. An individual, a nonprofit organization, or a business entity may claim a credit against the State income tax in accordance with Title 6, Subtitle 9 of the Housing and Community Development Article for new construction costs and rehabilitation costs for catalytic revitalization projects.

In this section, “eligible taxpayer” means a resident who, on the last day of the taxable year, is at least 65 years old. Except as provided in subsection (c) of this section and subject to subsection (d) of this section, an eligible taxpayer may claim a credit against the State income tax in an amount equal to: $1,000 for an eligible taxpayer, other than an individual described under item (2) of this subsection, whose federal adjusted gross income does not exceed $100,000; or for spouses filing a joint return or for a surviving spouse or head of household as defined in § 2 of the Internal Revenue Code whose federal adjusted gross income does not exceed $150,000: except as provided in item (ii) of this item, $1,750; or if only one of the individuals filing the joint return is an eligible taxpayer, $1,000. For a taxable year in which the September General Fund estimate for the current fiscal year in the September Board of Revenue Estimates report issued during the taxable year is more than 3.75% below the March General Fund estimate for the current fiscal year in the March Board of Revenue Estimates report issued in the taxable year, the amount of the credit allowed under subsection (b) of this section is limited to: $500 for an eligible taxpayer, other than an individual described under item (2) of this subsection, whose federal adjusted gross income is at least $50,000 but does not exceed $100,000; or for spouses filing a joint return or for a surviving spouse or head of household as defined in § 2 of the Internal Revenue Code whose federal adjusted gross income is at least $100,000 but does not exceed $150,000: except as provided in item (ii) of this item, $875; or if only one of the individuals filing the joint return is an eligible taxpayer, $500. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, the unused amount of the credit may not be carried over to any other taxable year.

In this section, “federal work opportunity credit” means the work opportunity tax credit allowed under § 38 of the Internal Revenue Code. An employer may claim a credit against the State income tax for wages paid or incurred by the employer during the taxable year to an individual with barriers to employment who is employed in the State in an amount equal to the lesser of: 50% of the federal work opportunity credit properly claimed for the taxable year by an employer on the employer’s federal income tax return with respect to those wages, excluding any amount carried back or forward from another taxable year in accordance with § 39 of the Internal Revenue Code; or except in the case of an employer that is an organization exempt from taxation under § 501(c) of the Internal Revenue Code, the State income tax imposed for that taxable year. An employer that is an organization exempt from taxation under § 501(c) of the Internal Revenue Code may apply the credit under this section as a credit for the payment to the Comptroller of taxes that the organization: is required to withhold from the wages of employees under § 10–908 of this title; and is required to pay to the Comptroller under § 10–906(a) of this title. The unused amount of the credit under this section may not be carried over to any other taxable year. On or before December 31, 2028, the Department of Legislative Services shall prepare a tax credit evaluation in accordance with Title 1, Subtitle 3 of this article on the tax credit authorized under this section and report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the tax credit evaluation.

In this section the following words have the meanings indicated. “Department” means the Department of Commerce. “National touring production” means a for–profit live stage theatrical production that: is presented in a qualified theatrical production facility for at least two public performances; and after the production’s final performance under item (i) of this paragraph, is performed for at least 4 weeks in at least four cities outside the State. “Pre–Broadway production” means a for–profit live stage theatrical production that: is presented in a qualified theatrical production facility for at least eight public performances; and in the production’s original or adaptive version: has never been performed or has been performed only on a limited basis in the immediately preceding 5 years; and is being prepared exclusively at the qualified theatrical production facility for a presentation in the Broadway theater district within 12 months after the production’s final presentation in a qualified theatrical production facility. “Qualified theatrical production entity” means an entity that: is carrying out a theatrical production; and is determined by the Secretary to be eligible for the tax credit under this section in accordance with subsection (c) of this section. “Qualified theatrical production facility” means a facility located in the State in which a theatrical production is performed. “Secretary” means the Secretary of Commerce. “Theatrical production” means: a national touring production; or a pre–Broadway production. “Total direct costs” means the total costs incurred in the State that are necessary to carry out the development, production, performance, or operation of a theatrical production. “Total direct costs” includes costs incurred for: set construction and operation; special and visual effects; wardrobe, makeup, and related services; sound, lighting, staging, and related services and materials; salary, wages, and other compensation including related benefits, for work performed in the State, paid to persons employed in the theatrical production; advertising and public relations associated with the performance of the theatrical production in a qualified theatrical production facility; rental of facilities in the State and equipment used in the State; leasing of vehicles; food and lodging; and travel expenses for bringing persons employed, either directly or indirectly, by the theatrical production to the State, but not including expenses for departing from the State. “Total direct costs” does not include any salary, wages, or other compensation for personal services of an individual who receives more than $100,000 per week in salary, wages, or other compensation for personal services in connection with any theatrical production. A qualified theatrical production entity may claim a credit against the State income tax for theatrical production activities in the State in an amount equal to the amount stated in the tax credit certificate approved by the Secretary for a theatrical production. If the tax credit allowed under this section in any taxable year exceeds the total tax otherwise payable by the qualified theatrical production entity for that taxable year, the qualified theatrical production entity may claim a refund in the amount of the excess. Before beginning a theatrical production activity, a theatrical production entity must submit to the Department an application to qualify as a theatrical production entity. The application shall describe the anticipated theatrical production activity, including: the projected total budget; the estimated number of Maryland resident and out–of–state employees and total wages to be paid; and the anticipated dates for carrying out the major elements of the theatrical production. To qualify as a theatrical production entity, the estimated total direct costs incurred in the State must exceed $100,000. The application shall include any other information required by the Secretary. The Secretary shall: determine whether the theatrical production entity qualifies for the credit under this section; and notify the Comptroller of the estimated amount of total direct costs and the taxable year the credit will be claimed. After completion of the theatrical production activity, a qualified theatrical production entity shall apply to the Department for a tax credit certificate. The application shall be on a form required by the Secretary and shall include: proof of the total direct costs that qualify for the tax credit; and the number of employees hired and wages paid. The Secretary may require the information provided in an application for the tax credit certificate to be verified by an independent auditor selected and paid for by the theatrical production entity seeking the tax credit certificate. Subject to subsection (f) of this section, the Secretary shall determine the total direct costs that qualify for the tax credit and issue a tax credit certificate for 25% of the total direct costs that qualify for the tax credit. In accordance with § 2.5–109 of the Economic Development Article, the Department shall submit a report that includes: the number of theatrical production entities submitting applications under subsection (c) of this section; the number and amount of tax credit certificates issued under subsection (d) of this section; the number of local technicians and actors hired for a theatrical production during the reporting period; a list of companies doing business in the State, including hotels, that directly provided goods or services for a theatrical production during the reporting period; a list of companies doing business in the State that directly provided goods or services for a theatrical production during the reporting period that qualified during the reporting period as minority business enterprises under § 14–301(f) of the State Finance and Procurement Article; a list of companies doing business in the State that directly provided goods or services for a theatrical production during the reporting period that, as determined by the Department, are considered small businesses; and any other information that indicates the economic benefits to the State resulting from theatrical production activity during the reporting period. Except as provided in paragraph (2) of this subsection, the Secretary may not issue tax credit certificates for credit amounts in the aggregate totaling more than $5,000,000 in any fiscal year. Subject to the limitation under paragraph (3) of this subsection, if the aggregate credit amounts under the tax credit certificates issued by the Secretary total less than the maximum provided under paragraph (1) of this subsection in any fiscal year, any excess amount may be carried forward and issued under tax credit certificates in a subsequent fiscal year. The aggregate amount carried forward from all prior fiscal years in accordance with paragraph (2) of this subsection may not exceed $20,000,000. The Secretary may not issue tax credit certificates for credit amounts totaling more than $2,000,000 in the aggregate for a single theatrical production. The Department and the Comptroller jointly shall adopt regulations to carry out the provisions of this section and to specify criteria and procedures for the application for, approval of, and monitoring of continuing eligibility for the tax credit under this section.

In this section, “automated external defibrillator” means a medical heart monitor and defibrillator device that: is cleared for market by the federal Food and Drug Administration; recognizes the presence or absence of ventricular fibrillation or rapid ventricular tachycardia; determines, without intervention by an operator, whether defibrillation should be performed; after a determination that defibrillation should be performed, automatically charges; and operates in a manner that: requires operator intervention to deliver an electrical impulse; or automatically continues with delivery of an electrical impulse. Subject to the limitations of this section, an individual or a business entity that owns a restaurant in the State may claim a credit against the State income tax in an amount equal to the first $500 of the purchase price of an automated external defibrillator purchased for use at the restaurant during the taxable year. The credit allowed under this section: is applicable for only one automated external defibrillator purchased for use at a restaurant location in the State with annual gross income of at least $400,000; and may be claimed only once by an individual or business entity for each restaurant location. For any taxable year, the credit allowed under this section may not exceed the lesser of: $1,500; or the State income tax imposed for the taxable year, calculated before the application of the credits allowed under this section and under §§ 10–701 and 10–701.1 of this subtitle but after the application of any other credit allowed under this subtitle. The unused amount of the credit may not be carried over to any other taxable year.

Subject to the limitations of this section, a taxpayer who is a parent of a stillborn child may claim a credit against the State income tax in an amount equal to $1,000 for each birth for which a certificate of birth resulting in stillbirth has been issued under § 4–213.1 of the Health – General Article or for which a certificate of fetal death or its equivalent has been issued by another state. The amount of the credit shall be reduced by $50 for each $1,000, or fraction thereof, by which the taxpayer’s federal adjusted gross income exceeds: $100,000 in the case of an individual; or $150,000 in the case of a married couple filing a joint income tax return. The credit allowed under this section may be claimed only for the taxable year in which the stillbirth occurred. If the credit allowed under this section in any taxable year exceeds the State income tax for that taxable year, the taxpayer may claim a refund in the amount of the excess.

In this section the following words have the meanings indicated. “Department” means the Department of Emergency Management. “Employee retirement system” has the meaning stated in § 10–209(a) of this title. “9–1–1 specialist” has the meaning stated in § 9–262(a) of the Tax – Property Article. “Secretary” means the Secretary of Emergency Management. For taxable years beginning after December 31, 2025, but before January 1, 2029, an individual who is a retired 9–1–1 specialist may claim a credit against the State income tax in the amount stated in the tax credit certificate approved by the Secretary. The individual shall provide the tax credit certificate to the Comptroller, in the form and manner required by the Comptroller. An individual qualified for the credit under this section may apply to the Department for a tax credit certificate. The Secretary shall approve each application under paragraph (1) of this subsection that qualifies for a tax credit certificate. Subject to paragraph (4) of this subsection, the Department shall issue a tax credit certificate to the qualified individual in an amount equal to 4.75% of the first $15,000 of retirement income from an employee retirement system attributable to the individual’s service as a 9–1–1 specialist in the State, not to exceed $700. The Secretary shall: determine whether the individual is qualified for the credit under this section; and notify the Comptroller, in the form and manner required by the Comptroller, of the individuals to whom the Department has issued a tax credit certificate under this section. The total amount of the tax credit certificates approved by the Secretary may not exceed $250,000 for each taxable year. If the total amount of tax credit certificates the Department is required to approve under paragraph (2) of this subsection exceeds $250,000 in a fiscal year, the Department shall issue tax credit certificates to qualified individuals on a pro rata basis.