Maryland Community Investment Tax Credit Program Download Free Apps

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  1. Maryland Community Investment Tax Credit Program Download Free Apps Free
  2. Maryland Community Investment Tax Credit Program Download Free Apps 2017

The Community Investment Tax Credit program, or CITC, is a program of the Maryland Department of Housing and Community Development that provides tax incentives to encourage Maryland business entities and/or residents to support nonprofit’s, like MHP, that are working to improve our community. The state-run biotechnology investment tax credit program may be getting too successful for its own good. The program is extremely popular, and supply of tax credits each year far outweighs demand.

Tapping the sun for power just feels good—solar power doesn't pollute, reduces our use of coal and other fossil fuels, and thereby helps reduce your individual carbon footprint. But it can also cost more than electricity from natural gas and other sources.

To encourage Americans to use solar power, the Environmental Protection Agency and the Department of Energy run the Energy Star program, which, among other projects, offers tax credits for solar-powered systems.

Credits for approved solar installations

Installing alternative energy equipment in your home can qualify you for a credit equal to 30% of your total cost.

  • The credit is available through the end of 2019. After that, the percentage steps down each year and then stops at the end of 2021.
  • Qualifying equipment includes solar-powered units that generate electricity or heat water.
  • The credit is only available for improvements you make to your residence. This can apply to a second residence as well.

As a credit, you take the amount directly off your tax payment, rather than as a deduction from your taxable income. Other than the cost of the system, there's no limit to the dollar amount of the credit.

Claiming solar credits for rental property

You can't claim a credit for installing solar power at rental properties you own, unless you also live in the house for part of the year and use it as a rental when you're away.

  • You'll have to reduce the credit for a vacation home, rental or otherwise, to reflect the time you're not there.
  • If you live there for three months a year, for instance, you can only claim 25% of the credit: If the system cost $10,000, the 30% credit would be $3,000, and you could claim a quarter of that, or $750.
    • $10,000 system cost x 0.30 (30% credit) = $3,000 credit amount
    • $3,000 credit amount x 0.25 (25% of the year) = $750 credit amount

Filing requirements for solar credits

To claim the credit, you must file IRS Form 5695 as part of your tax return; you calculate the credit on the form, and then enter the result on your 1040.

  • If you end up with a bigger credit than you have income tax due—a $3,000 credit on a $2,500 tax bill, for instance—you can't use the credit to get money back from the IRS.
  • Instead, generally, you can carry the credit over to the following tax year.
  • However, it is not yet clear whether you can carry unused credits to years after the solar credit expires.

The approval process for EITC/OSTC business participants has begun and will continue over the course of the next few weeks. It’s important that all approved applicants pay attention to your approval letter to ensure they donate to the correct type of organization as identified in your application and approval letter. Also, all approved EITC/OSTC donations are time sensitive so please be sure to have all donations made within 60 days of the date on the approval letter.

Overview

Maryland Community Investment Tax Credit Program Download Free Apps Free

Tax credits to eligible businesses contributing to a Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization.

Business Application Timeline

  • May 15 – Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 19/20 to renew their 2-year commitment.
  • May 15 – Businesses who are in the middle of their 2-year commitment.
  • July 1 – All other businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment.

Pass-through entities, such as S-Corporations, Partnerships, LLCs, etc., can now apply the same day as C-Corporations. Applications must be submitted electronically using DCED’s Single Application for Assistance. See the business application guide in the box above.

OSTC

Uses

Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.

Eligibility

Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes:

Maryland community investment tax credit program download free apps free
  • Personal Income Tax
  • Capital Stock/Foreign Franchise Tax
  • Corporate Net Income Tax
  • Bank Shares Tax
  • Title Insurance & Trust Company Shares Tax
  • Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
  • Mutual Thrift Tax
  • Malt Beverage Tax
  • Retaliatory Fees under section 212 of the Insurance Company Law of 1921

Funding

Tax credits equal to 75 percent of its contribution up to a maximum of $750,000 per taxable year. Can be increased to 90 percent of the contribution, if business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.

Maryland Community Investment Tax Credit Program Download Free Apps 2017

Terms

An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter. Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and are not refundable or transferable, except for an approved election by a pass-through entity to apply any unused tax credits to the tax liability of the owners in the taxable year immediately following the year in which the contribution is made.

How to Apply

Businesses

Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic single application system. DCED will no longer require applicants to mail the signed signature page.

The business application guide explains the process of applying. Tax credit applications will be processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.

Organizations

Applicants interested in applying as an Educational Improvement Organization, Scholarship Organization or Pre-K Organization can apply at DCED Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, PA 17120: 717.787.7120 or [email protected] Do not use the Single Application. The application process is listed below.

Additional Information

Organizational Guidelines (.PDF)

List of Organizations

  • Pre-Kindergarten Scholarship Organizations