The state of Maryland has a habit of passing tax credits that are so complicated to administer that they literally are not worth claiming for many taxpayers. These credits not only require you to apply to be certified as eligible for the credit, but you have to amend your income tax return in order to take the credit. This is because the state only determines the amount of credit you can actually receive after the tax returns from all taxpayers claiming the credit have been received. Fortunately, in the most recent legislative session, Maryland lawmakers passed a new credit which you can take the first time you file your tax return for 2014.
In order to determine if you are eligible for this credit, all you need to do is check the registration card of the vehicles owned by you or your company. The credit is for “Class F” vehicles which are commercial or farm vehicles used for pulling a trailer. The credit will be $400 per eligible vehicle, but is limited to the amount of your Maryland income tax for the year. If your company owns several large vehicles then now is the time to take a look at the registration cards and put a copy of their registrations in your tax file if the box for “class” has an “F”.
If you have any questions regarding this or any other Maryland income tax credit please contact your MKS&H tax advisor.
Article Provided By Tim Stolz, CPA, MKS&H Senior Tax Accountant
About MKS&H: McLean, Koehler, Sparks & Hammond (MKS&H) is a professional service firm with offices in Hunt Valley and Frederick. MKS&H helps owners and organizational leaders become more successful by advising them regarding their financial, technology and human capital management needs. Please visit www.MKSH.com for more information.