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.
Research Tax Credit
Important Links and Forms

MD DOC
MD Application
MD Application Instructions
MD Regulations

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