Credit Carry Forward: Credits can be carried forward for 7 years, but no carry back.  About the Credit: Maryland adopts the federal definition of QRE’s and qualified R&D.

• The Basic R&D Tax Credit:  Credit equals 3% of QRE’s that do not exceed the Maryland Base Amount.
• The Growth R&D Tax Credit: Credit equals 10% of QRE’s in excess of the Maryland Base Amount.

The Maryland Base Amount is determined by dividing the accumulated QRE’s by the accumulated Maryland gross receipts for the four years prior to the credit year. If either credit exceeds $4.5 million, the tax credit is allocated.  Notes: The business must file an application by September 15th for expenses acquired in the previous calendar year. R&D credits received after December 15, 2012 are refundable  for “small businesses” to the extent that the tax credits exceed the income tax due for that year.

Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed’s office location at 145 West Ostend Street, Baltimore, Maryland provides R&D tax credit consulting and advisory services to Baltimore, Frederick, Rockville, Gaithersburg, Bowie, Hagerstown, Annapolis, College Park, Salisbury and Laurel.

If you have any questions or need further assistance, please call or email our local Maryland Partner on (443) 687-8701.
Feel free to book a quick teleconference with one of our Maryland R&D tax credit specialists at a time that is convenient for you. Click here for more information about R&D tax credit management and implementation.