MARYLAND 2017

1 MARYLAND . 2017 . pass - through entity INCOME TAX RETURN INSTRUCTIONS. For filing calendar year or any other tax year or period beginning in 2017 . Peter Franchot, Comptroller MARYLAND pass - through entity Taxpayers Clean Energy Incentive Tax Credit**. This booklet contains the instructions necessary for a pass - Community Investment Tax Credit**. through entity (PTE) to file a 2017 MARYLAND tax return. Commuter Tax Credit Read the instructions carefully. Cybersecurity Investment Incentive Tax Credit**. Use blue or black ink when completing your forms and checks. Employer-Provided Long-Term Care Insurance Tax Credit To avoid delays in the processing of your return: do not use pencil or ink in any other color; do not print Endow MARYLAND Tax Credit**.

2 Returns on colored paper; do not write on, staple or Enterprise Zone Tax Credit**. punch holes in the barcode. Film Production Activity Tax Credit**. Form 510 and its related forms are to be used by partnerships, S corporations, limited liability companies First-Year Leasing Costs Tax Credit for Qualified and business trusts. Small Businesses**. A business trust shall be classified as a corporation, a Health Enterprise Zone Hiring Tax Credit**. partnership, a trust or otherwise, as determined under the Heritage Structure Rehabilitation Tax Credit from United States Internal Revenue Code.

3 Form 502S. The pass - through entity income tax return is generally an Job Creation Tax Credit**. information return. The entity 's income or loss is passed through to the separate members for taxation purposes. If MARYLAND Disability Employment Tax Credit**. a pass - through entity is owned by a nonresident, it may be MARYLAND Employer Security Costs Tax Credit**. subject to the nonresident pass -though entity income tax. MARYLAND Wineries and Vineyards Tax Credit**. Credit may be claimed on a member's income tax return for any tax paid on behalf of a nonresident member by the MARYLAND -Mined Coal Tax Credit**.

4 pass - through entity . The pass - through entity may elect to One MARYLAND Economic Development Tax Credit**. file a composite return on behalf of qualified nonresident Oyster Shell Recycling Tax Credit**. individual members under which the entity would be the agent to receive any refund or to pay any tax due. Preservation and Conservation Easements Tax Nonresident fiduciary and nonresident entity members Credit**. may not participate in the filing of the composite return. Qualified Farms Tax Credit**. See Administrative Release 6 for more information. You can obtain Administrative Release 6 from any MARYLAND Qualified Vehicle Tax Credit**.

5 Taxpayer Service Branch office or from our Web site. Qualified Veteran Employees Tax Credit**. Certain investment partnerships are not subject to the Research and Development Tax Credits**. nonresident tax. See the Specific Instructions for line 4. Manufacturing corporations are subject to a special single **Required Certification must be included with factor formula of receipts. The rules for calculating this Form 500CR. single factor can be found in MARYLAND Tax Regulation REMINDER. The MARYLAND Form 510. A pass through entity Income Tax Return must be filed Form 500CR electronically if the pass - through entity has generated MARYLAND Form 500CR is used to claim the following a business tax credit from MARYLAND Form 500CR or a business tax credits against corporation and individual Heritage Structure Rehabilitation Tax Credit from Form income tax.

6 502S to pass on to its members. Electronic Format In accordance with SB 36 of the Forms and help Acts of 2017 of the MARYLAND General Assembly, the Comptroller of MARYLAND may grant a taxpayer a waiver of For online business registration, tax forms, the requirement to file for certain tax credit(s) by electronic instructions, publications, and MARYLAND Tax means. Form 500 CRW, Request for a Waiver, must Regulations, visit be submitted with the Form 500CR that establishes a reasonable cause for not filing by electronic means or that E-mail your tax questions to there is no feasible means of filing electronically creating an undue hardship.

7 For assistance, call: 410-260-7980 in Central Aerospace, Electronics, or Defense Contracts Tax MARYLAND or 1-800-MDTAXES (638-2937) from Credit** elsewhere Apprentice Employee Tax Credit**. Filing electronically Bio-Heating Oil Tax Credit**. You may file your MARYLAND Corporation or pass - through Biotechnology Investment Incentive Tax Credit**. entity returns electronically using the Modernized Businesses That Create New Jobs Tax Credit e-File method of Federal/State 1120/1065 filing. For Cellulosic Ethanol Technology Research & more information, contact our e-File Help Desk at 410- Development Tax Credit** 260-7753 or visit i MARYLAND .

8 FORM. pass - through entity 2017 . INCOME TAX RETURN INSTRUCTIONS. 510. GENERAL INSTRUCTIONS. FILING FORM 510 4 GENERAL INFORMATION FOR FORM 510. The MARYLAND Form 510 must be filed electronically if the pass - Accounting Periods The tax year or period used for the through entity has generated a business tax credit from federal return must be used for the MARYLAND return. Accordingly, MARYLAND Form 500CR or a Heritage Structure Rehabilitation Tax calendar tax years, fiscal tax years, and short tax periods may Credit from Form 502S to pass on to its members. be necessary for MARYLAND filing purposes.

9 Purpose of Form Form 510 is used by a pass - through entity If a federal return is filed or required, a corresponding MARYLAND (PTE) to file an information income tax return for a specific tax return must be filed. The form used for filing must reflect the year or period and to remit PTE nonresident tax. The term preprinted tax year in which the PTE's tax year begins. pass - through entity includes partnerships as defined in Use of Federal Figures In preparing Form 510, all items that Internal Revenue Code (IRC) Section 761, S corporations as are reported for federal purposes must be reported on the defined in IRC Sections 1361 and 1362, limited liability MARYLAND return in the same manner.

10 The character of an item companies (LLC) as defined in MARYLAND Corporations and cannot be changed from that required or elected for federal Associations Article, Section 4A-101 and business trusts as purposes. defined in MARYLAND Corporations and Associations Article, Taxability Form 510 generally is an infor mation return. The Section 12-101. items of income or loss of the PTE are passed through to the A LLC is treated as a partnership for MARYLAND income tax members and subject to tax on the members' MARYLAND income purposes, unless it is treated as a corporation at the federal tax return.