1. A. The State tax credit is a credit against State income taxes that may be used in accordance with the Act, this chapter, and Tax-General Article, §10-753, Annotated Code of Maryland.
2. B. If the State tax credit allowed under this chapter in any taxable year exceeds the total tax otherwise payable by the individual, nonprofit organization, or business entity for that taxable year, the individual, nonprofit organization, or business entity may claim a refund in the amount of the excess.
3. C. The credit allowed under this chapter may be allocated among the partners, members, or shareholders of a business entity in any manner agreed to by those persons in writing.
4. D. The amount of the tax credit allowed, but not claimed, under this chapter may be transferred, by written instrument, in whole or in part, to any individual, nonprofit organization, or business entity.
5. E. For the taxable year of any transfer under §D of this regulation, the transferee may apply the tax credit against the total tax otherwise payable by the transferee in that taxable year.

6. F. If the tax credit exceeds the total tax otherwise payable by the transferee in any taxable year, the transferee:

   1. (1) May claim a refund in the amount of the excess;
   2. (2) May carry forward and apply the excess credit for succeeding taxable years until the full amount of the credit is used; or
   3. (3) May transfer the remainder of the tax credit to an individual, a nonprofit organization, or a business entity in accordance with §D of this regulation.

Authority: Housing and Community Development Article, §6-904, Annotated Code of Maryland

Effective date: March 17, 2025 (52:5 Md. R. 236)