# COMAR Title 11 — Department of Transportation

## Subtitle 01 — Office of the Secretary

### Chapter 18 — Tax Credits — Employer-Provided Commuter Benefits — Expansion and Administration

**Authority:** Environment Article, §2-901; Transportation Article, §2-103; Annotated Code of Maryland

**Administrative History:** Effective date: March 20, 2023 (50:5 Md. R. 181)

#### Regulation .01 Purpose.

*COMAR 11.01.18.01*

The purpose of this chapter is to implement the requirements of Chapter 118, Acts of 2022, by establishing an application process for employers that provide commuter benefits to receive the tax credit described in Environment Article, §2-901, Annotated Code of Maryland, and in compliance with transportation congestion relief and air quality mitigation goals.

#### Regulation .02 Definition.

*COMAR 11.01.18.02*

In this chapter, “business entity” has the meaning stated in Environment Article, §2–901, Annotated Code of Maryland.

#### Regulation .03 Application for Commuter Tax Credit.

*COMAR 11.01.18.03*

A. A business entity shall provide the Department with a completed online application.

B. The Department shall approve all applications that qualify for a tax credit certificate.

#### Regulation .04 Who May Request.

*COMAR 11.01.18.04*

Any business entity may request a commuter tax credit on a tax return for the tax year in which a commuter benefit was paid.

#### Regulation .05 Period of Validity.

*COMAR 11.01.18.05*

A. A claim for a refund may not be filed after 3 years from the date of the tax, and, if the commuter tax credit is more than the State tax liability, the unused credit may not be carried forward to any other year.

B. For any fiscal year, the total amount of the tax credit certificates issued by the Department for the credit allowed may not exceed $1,000,000.

C. For taxable years beginning after December 31, 2012, the income tax credit is available only on an electronically filed income tax return for the tax year in which the credit is being claimed

#### Regulation .06 Required Proofs.

*COMAR 11.01.18.06*

A. The Form 500CR section of the income tax return shall be completed.

B. State and Local Income Taxes Withheld. Form MW508CR shall be submitted with Form MW508, the Maryland Annual Employer Withholding Reconciliation Report, in order to claim this credit against Maryland income tax withheld. If the tax-exempt entity is required to file the MW508 electronically, then the MW508CR shall be filed with an amended MW508A, as the MW508CR is not available electronically at this time.