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2005 LAWS OF MARYLAND
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Ch. 98
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(ii) attach a copy of the Department's certification of the approved
credit amount to the amended income tax return.
(d) If the credit allowed under this section in any taxable year exceeds the
State income tax for that taxable year, an individual or corporation may apply the
excess as a credit against the State income tax for succeeding taxable years until the
earlier of:
(1) the full amount of the excess is used; or
(2) the expiration of the [15th] 7TH taxable year after the taxable year
in which the Maryland qualified research and development expense was incurred.
(e) (1) In determining the amount of the credit under this section:
(i) all members of the same controlled group of corporations, as
defined under § 41(f) of the Internal Revenue Code, shall be treated as a single
taxpayer; and
(ii) the credit allowable by this section to each member shall be its
proportionate shares of the qualified research expenses giving rise to the credit.
(2) The Comptroller shall adopt regulations providing for:
(i) determination of the amount of the credit under this section in
the case of trades or businesses, whether or not incorporated, that are under common
control;
(ii) pass-through and allocation of the credit in the case of estates
and trusts, partnerships, unincorporated trades or businesses, and S corporations;
(iii) adjustments in the case of acquisitions and dispositions
described in § 41(f)(3) of the Internal Revenue Code; and
(iv) determination of the credit in the case of short taxable years.
(3) The regulations adopted under paragraph (2) of this subsection shall
be based on principles similar to the principles applicable under § 41 of the Internal
Revenue Code and regulations adopted thereunder.
(f) (1) The Department of Business and Economic Development and the
Comptroller jointly shall adopt regulations to prescribe standards for determining
when research or development is considered conducted in the State for purposes of
determining the credit under this section.
(2) In adopting regulations under this subsection, the Department and
the Comptroller may consider:
(i) the location where services are performed;
(ii) the residence or business location of the person or persons
performing services;
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