If you made a donation to a qualified permanent
endowment fund held at an eligible institution of
higher education (Bowie State University, Coppin
State University, Morgan State University or University of
Maryland Eastern Shore), you may be eligible for a credit of 25% of
the amount of donation.
The tax credit application can be found at www.marylandtaxes.gov and must be emailed to HBCUtaxinfo@comp.state.md.us and will be approved on a first-come, first served basis by the Comptroller of Maryland. The application must be submitted in the calendar year the donation was made. You are required to submit documentation from the institution showing proof of donation within 30 days before a final tax credit certificate is issued.
You may claim the tax credit against the State income tax in the amount stated on the tax credit certificate issued by the Comptroller. If the credit exceeds the State income tax for the taxable year, the excess credit is non-refundable, but it may be carried forward and applied to succeeding taxable years until fully utilized. You are required to add back the amount of the credit claimed to Maryland adjusted gross income or Maryland modified income to the extent excluded from federal adjusted gross income. This credit applies only to Maryland residents.
Individuals taxpayers that are eligible and are NOT PTE members, may elect to claim the credit using Form 502CR instead of Form 500CR. However, you may NOT claim the credit on both Form 500CR and Form 502CR. PTE members and corporations must claim this credit on Form 500CR. Fiduciaries will claim this credit on Form 504CR.