Chapter 04. Tax Credit for Eligible Apprentices
Regulation .01 Definitions.LinkCopy Citation
A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Comptroller” means the Comptroller of Maryland.
(2)
“Department” means the Maryland Department of Labor.
Regulation .02 Credit Allowed.LinkCopy Citation
Subject to the limitations set forth in Tax-General Article, §10-742(c), Annotated Code of Maryland, a taxpayer may claim a credit against the State income tax in an amount equal to the amount stated in the tax credit certificate issued by the Department.
Regulation .03 Application and Application Process.LinkCopy Citation
A.
Application. An applicant shall submit:
(1)
A completed application to the Department on the form designated by the Department; and
(2)
Supporting documentation required by the Department.
B.
The Department shall:
(1)
Approve applications during the application period;
(2)
Approve the application if the:
(a)
Application is complete; and
(b)
Applicant is determined to be eligible;
(3)
Disapprove the application if the:
(a)
Application is incomplete;
(b)
Applicant fails to provide sufficient information or documentation to determine eligibility;
(c)
Applicant provides the appropriate documentation but is determined ineligible; or
(d)
The funds available for that tax year are expended; and
(4)
Provide the applicant with written notice of the final disposition of the application within 45 calendar days.
Regulation .04 Income Tax Credits.LinkCopy Citation
On approval of an application, the Department shall issue an income tax credit certificate.
Regulation .05 Claiming the Credit.LinkCopy Citation
A.
A taxpayer allowed the credit shall claim the credit against the State income tax in the year in which the apprentice is registered as set forth in Tax-General Article, §10-742(a)(3), Annotated Code of Maryland.
B.
A taxpayer allowed the credit shall claim the credit against the State income tax in the form and manner required by the Comptroller.
Regulation .06 Carryover of Excess Credit.LinkCopy Citation
If the credit allowed to the taxpayer in any taxable year exceeds the total of tax otherwise payable for that taxable year, the business entity may apply the excess as a credit for succeeding taxable years until the full amount of the excess credit is used.
Regulation .07 Monitoring.LinkCopy Citation
The Department may request additional documentation to monitor continuing eligibility.
Regulation .08 Expiration of the Credits.LinkCopy Citation
A.
This chapter remains in effect until the earlier of:
(1)
The date that funding for income tax credits ceases to be available; or
(2)
June 30, 2025.
B.
The Department shall issue final income tax credits based on available funds.
Chapter annotations
Authority: Tax-General Article, §10-742, Annotated Code of Maryland
History: Effective date: October 31, 2022 (49:22 Md. R. 979)