# COMAR Title 09 — Maryland Department of Labor

## Subtitle 37 — Workforce Development and Adult Learning

### Chapter 04 — Tax Credit for Eligible Apprentices

**Authority:** Tax-General Article, §10-742, Annotated Code of Maryland

**Administrative History:** Effective date: October 31, 2022 (49:22 Md. R. 979)

#### Regulation .01 Definitions.

*COMAR 09.37.04.01*

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.

*COMAR 09.37.04.02*

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.

*COMAR 09.37.04.03*

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.

*COMAR 09.37.04.04*

On approval of an application, the Department shall issue an income tax credit certificate.

#### Regulation .05 Claiming the Credit.

*COMAR 09.37.04.05*

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.

*COMAR 09.37.04.06*

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.

*COMAR 09.37.04.07*

The Department may request additional documentation to monitor continuing eligibility.

#### Regulation .08 Expiration of the Credits.

*COMAR 09.37.04.08*

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.