1. A. Eligible Costs. A taxpayer may only claim the credit for allowed costs incurred during its taxable year. If the taxpayer 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 taxpayer incurs allowed costs in 2 taxable years during a calendar year, one of which is a short taxable year, the taxpayer 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 qualified capital costs incurred during the short taxable year; and
   2. (2) The denominator of which is the allowed qualified capital costs incurred during the entire calendar year.

Authority: Tax General Article, §§2-103 and 10-735; Economic Development Article, §2-108; Annotated Code of Maryland

Effective date: February 3, 2014 (41:2 Md. R. 92)