1. A. Eligible Costs. A business entity may only claim the credit for allowed costs incurred during its taxable year. If the business entity has a short taxable year, only the allowed costs incurred during the short taxable year are allowed on the short year return.

2. B. If the business entity incurs allowed costs in 2 taxable years during a calendar year, one of which is a short taxable year, the business entity may only claim a credit on the short taxable year return in an amount equal to the total credits certified by the Department multiplied by a fraction:

   1. (1) The numerator of which is the allowed costs incurred during the short taxable year; and
   2. (2) The denominator of which is the allowed costs incurred during the entire calendar year.

Authority: Tax-General Article, §§2-103 and 10-732; Economic Development Article, §2-108; Annotated Code of Maryland

Effective date: December 23, 2013 (40:25 Md. R. 2071)