Maryland R&D Tax Credit Summary

R&D Tax Credit Available:

Yes - Expires on January 1, 2020

Eligible Entities:

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

Credit Carryforward:

None

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.

Special Notes:

• 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.