(a) (1) A qualified business entity may claim a project tax credit for the cost of an eligible economic development project in a Tier I county if the total eligible project cost for the eligible economic development project is at least $500,000.
(2) A qualified business entity is not entitled to a project tax credit for a cost incurred before notifying the Department of its intent to seek certification as qualifying for the project tax credit.
(b) (1) (i) Subject to the limitation in paragraph (2) of this subsection, the project tax credit allowed under this section is the lesser of the maximum amount specified in subparagraph (ii) of this paragraph and the total eligible project cost for the eligible economic development project, less the amount of the credit previously taken for the project in prior taxable years.
(ii) For purposes of calculation of the credit under subparagraph (i) of this paragraph, the maximum amount is:
1. $5,000,000, if the qualified business entity creates at least 50 qualified positions;
2. $2,500,000, if the qualified business entity creates at least 25 qualified positions but fewer than 50 qualified positions; or
3. $1,000,000, if the qualified business entity creates at least 10 qualified positions but fewer than 25 qualified positions.
(2) Except as provided in subsections (d) and (e) of this section, the project tax credit allowed in a taxable year may not exceed the State tax for that year on the qualified business entity’s income.
(3) The Department shall certify the amount of the project tax credit for which a qualified business entity is eligible.
(4) (i) A qualified business entity shall report to the Department the amount of the project tax credit that the entity claims on the entity’s tax return for each taxable year that the entity claims any portion of the project tax credit.
(ii) The failure of the qualified business entity to provide the information required under subparagraph (i) of this paragraph shall disqualify the entity from claiming any unclaimed amount of the project tax credit.
(c) A qualified business entity that is subject to taxation under Title 6 of the Insurance Article may claim the project tax credit against the insurance premium tax.
(d) (1) Subject to paragraph (2) of this subsection, if the eligible project cost for the eligible economic development project exceeds the State tax on the qualified business entity’s income, the qualified business entity may apply any excess as a project tax credit for succeeding taxable years against the State tax on the qualified business entity’s income until the earlier of:
(i) the full amount of the excess is used; or
(ii) the expiration of the 10th taxable year following the credit year.
(2) (i) A qualified business entity may claim a prorated share of the credit under this subsection if:
1. during any taxable year after the qualified business entity is certified for the tax credit, the number of qualified positions filled by the qualified business entity falls below the minimum number of qualified positions required to qualify for the project tax credit, but does not fall below 10; and
2. the qualified business entity has maintained at least the minimum number of qualified positions required to qualify for the project tax credit for at least 5 years.
(ii) The prorated share of the credit is calculated based on the number of qualified positions filled for the taxable year divided by the minimum number of qualified positions required to qualify for the project tax credit.
(e) (1) Subject to the limitation in paragraph (4) of this subsection, this subsection applies to any taxable year after the 4th credit year.
(2) A qualified business entity other than a person subject to taxation under Title 6 of the Insurance Article may claim a refund in the amount, if any, by which the qualified business entity’s unused excess exceeds the State tax for the taxable year.
(3) A qualified business entity that is subject to taxation under Title 6 of the Insurance Article may:
(i) apply any excess of eligible project costs for the eligible economic development project over the cumulative amount used as a project tax credit for the taxable year and all prior taxable years as a tax credit against the premium tax imposed for the taxable year; and
(ii) claim a refund in the amount, if any, by which the unused excess exceeds the premium tax for the taxable year.
(4) For any taxable year, the total amount claimed as a refund under this subsection may not exceed the amount of tax that the qualified business entity is required to withhold for the taxable year from the wages of qualified employees under § 10–908 of the Tax – General Article.
(5) (i) A qualified business entity may claim a prorated share of the credit under this subsection if:
1. during any taxable year after the qualified business entity is certified for the tax credit, the number of qualified positions filled by the qualified business entity falls below the minimum number of qualified positions required to qualify for the project tax credit, but does not fall below 10; and
2. the qualified business entity has maintained at least the minimum number of qualified positions required to qualify for the project tax credit for at least 5 years.
(ii) The prorated share of the credit is calculated based on the number of qualified positions filled for the taxable year divided by the minimum number of qualified positions required to qualify for the project tax credit.
(f) A qualified business entity shall attach the certification required under § 6–402 of this subtitle to the tax return on which the project tax credit is claimed.