(a) In this section, “member” and “pass–through entity” have the meanings stated in § 10–102.1 of this title.
(b) Except as provided in subsection (c) of this section, a resident may claim a credit against the income tax for a taxable year in the amount determined under subsection (d) of this section for State tax on income paid to another state for the year.
(c) A credit under subsection (b) of this section is not allowed to:
(1) a resident other than a fiduciary, if the laws of the other state allow the resident a credit for State income tax paid to this State;
(2) a resident fiduciary, if the fiduciary claims, and the other state allows, a credit for State income tax paid to this State;
(3) a resident for less than the full taxable year for tax on income that is paid to another state during residency in that state; or
(4) a nonresident.
(d) (1) Except as provided in paragraph (2) of this subsection and subject to subsection (e) of this section, the credit allowed a resident under subsection (b) of this section is the lesser of:
(i) the amount of allowable tax on income that the resident paid to another state; or
(ii) an amount that does not reduce the income tax to an amount less than would be payable if the income subjected to tax in the other state were disregarded.
(2) If the credit allowed a resident under subsection (b) of this section is based on tax that a pass–through entity pays to another state, the credit allowable to a member of the pass–through entity:
(i) may not exceed that member’s pro rata share of the tax; and
(ii) will be allowed for another state’s income taxes or taxes based on income.
(e) (1) The amount of the credit allowed under subsection (b) of this section to be applied against the State income tax is equal to the amount that would be calculated under subsection (d) of this section using the State income tax rate as the only applicable rate.
(2) The amount of the credit allowed under subsection (b) of this section to be applied against the county income tax is equal to the amount calculated under subsection (d) of this section less the amount calculated under paragraph (1) of this subsection.
Structure Maryland Statutes
Subtitle 7 - Income Tax Credits
Section 10-701 - Income Tax Withholdings and Estimated Tax Payments Made
Section 10-701.1 - For Tax Paid Under 10-102.1 of This Title
Section 10-702 - For Wages Paid in Enterprise Zone
Section 10-703 - For Tax Paid by Resident to Another State
Section 10-703.2 - Gains From Installment Sale of Property in Another State
Section 10-704 - For Earned Income
Section 10-704.1 - For Purchase of Maryland-Mined Coal
Section 10-704.5 - For Certified Rehabilitation
Section 10-704.6 - For Neighborhood and Community Assistance
Section 10-704.8 - For New Job Creating Businesses
Section 10-705 - Evidence of Entitlement Required
Section 10-706 - Effect of Credit on County and State Income Tax Computation
Section 10-707 - For Residential Real Estate Property Tax
Section 10-709 - Low Income Tax Credit
Section 10-710 - For Long-Term Care Insurance
Section 10-714 - One Maryland Economic Development Tax Credits
Section 10-715 - For Providing Employee Commuter Benefits
Section 10-716 - For Child Care or Dependent Care
Section 10-718 - Eligible Long-Term Care Premiums
Section 10-719 - Costs of Energy Storage Systems
Section 10-720 - Electricity Produced From Qualified Energy Resources
Section 10-721 - Qualified Research and Development Expenses
Section 10-722 - Green Buildings
Section 10-723 - Preservation and Conservation Easements
Section 10-724 - For Aquaculture Oyster Floats
Section 10-724.1 - Oyster Shell Recycling
Section 10-725 - Biotechnology Investment Incentive Tax Credit
Section 10-726 - Cellulosic Ethanol Technology
Section 10-730 - Film Production Activity Tax Credit
Section 10-733 - Innovation Investment Incentive Tax Credit
Section 10-733.1 - Purchase of Cybersecurity Technology and Cybersecurity Service
Section 10-734 - Qualified Vehicles
Section 10-734.1 - Qualified Vehicle -- Modification and Extension
Section 10-736 - Donations to Qualified Permanent Endowment Funds at Eligible Community Foundations
Section 10-738 - Physician Preceptor in a Preceptorship Program
Section 10-739 - Nurse Practitioner or Licensed Physician in Preceptorship Program
Section 10-740 - Student Loan Debt Relief Tax Credit
Section 10-741 - More Jobs for Marylanders Program Tax Credit
Section 10-744 - Independent Living Tax Credit
Section 10-745 - Food Donation Program for Qualifying Farms
Section 10-746 - Hunting and Harvesting of Antlerless Deer
Section 10-748 - Small Business Relief Tax Credit
Section 10-749 - Qualified Workforce Housing Project
Section 10-751 - Earned Income Credit Against State Income Tax for Qualified Children -- Reductions
Section 10-753 - Tax Credit for Catalytic Revitalization Projects