R&D Tax Credit Available:
Yes - Expires on January 1, 2020
C-Corporations, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Application due by 11/15
Data Required to Compute Credit:
- Claim Period Qualified R&D Expenses (QREs)
- QREs for Prior 4 Years
- Gross Receipts for Prior 4 Years
R&D Credit Summary:
There are two Maryland R&D tax credits available for companies:
- Basic R&D Credit: 3% of eligible Maryland R&D expenses that do not exceed the Maryland Base Amount. Basic tax credit is prorated if the total credits applied for exceed $5.5 million.
- Growth R&D Credit: 10% of eligible Maryland R&D expenses in excess of the Maryland Base Amount. Growth tax credit is prorated if the total credits applied for exceed $6.5 million.
- R&D tax credits are refundable for "small business" not to exceed the income tax liability for that taxable year.
- A small business means a for profit Corporation, LLC, Partnership or Sole Proprietorship with net book value assets totaling less than $5,000,000.