Regulation .03 Eligibility.
Regulation .03 Eligibility.LinkCopy Citation
A.
A person operating an agricultural operation that incurs additional commercial fertilizer costs due to conversion of nutrient use to meet the requirements of a phosphorus based nutrient management plan is eligible for a State income tax credit under this chapter, if:
(1)
A nutrient management plan meeting the requirements of COMAR 15.20.08 has been submitted to the Department;
(2)
The conversion of nutrient use is for the purpose of complying with the requirements set forth in COMAR 15.20.08 for the implementation of nutrient recommendations;
(3)
Those costs take into account management by the taxpayer of all acreage in their agricultural operation;
(4)
Those costs are related to the purchase of additional quantities of commercial fertilizer, specialized blends, or formulations, and not due solely to product price increases; and
(5)
The Department has approved a Certificate of Additional Fertilizer Expense for Income Tax Deduction, indicating the amount of credit that may be claimed.
B.
The credit may be taken against the following types of taxes:
(1)
Personal income tax; or
(2)
Corporate income tax.
C.
The credit may be claimed by the following types of agricultural operations:
(1)
Sole proprietorships;
(2)
Corporations; and
(3)
Pass-through entities, including partnerships, S-corporations, and limited liability companies on behalf of their partners, shareholders, and members, respectively.