# Tax - General (GTG)

## Title 10. Income Tax

### Subtitle 7. Income Tax Credits

#### Section 10-704.7

(a) An individual or a corporation may claim a credit against the income tax for:

  (1) wages paid to a qualified employee with a disability; and

  (2)

    (i) child care provided or paid for by a business entity for the children of a qualified employee with a disability as provided under Sec. 21-309 of the Education Article; or

    (ii) transportation provided or paid for by the business entity for a qualified employee with a disability as provided under Sec. 21-309 of the Education Article.

(b)

  (1) An organization that is exempt from taxation under Sec. 501(c)(3) or (4) of the Internal Revenue Code may apply the credit under this section:

    (i) as a credit against income tax due on unrelated business taxable income as provided under Sec.Sec. 10-304 and 10-812 of this title; or

    (ii) as a credit for the payment to the Comptroller of taxes that the organization:

      (1) is required to withhold from the wages of employees under Sec. 10-908 of this title; and

      (2) is required to pay to the Comptroller under Sec. 10-906(a) of this title.

  (2) 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 Sec. 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 Sec. 21-309 of the Education Article.

  (3) The Comptroller shall adopt regulations to provide procedures for claiming and applying credits authorized under paragraph (1)(ii) of this subsection.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)