Section 11-1107 - Claims; refunds.
§ 11-1107. Claims; refunds.
(a) Claims.-
(1) The tax credit authorized under this subtitle:
(i) may be claimed only for individuals hired into qualified positions for which they begin receiving wages on or after the effective date of Chapter 1 (S.B. 106) of the Acts of the General Assembly of 2010 but on or before December 31, 2010; and
(ii) except as otherwise provided in this subsection, must be claimed on the qualified employer's 2010 or 2011 State income tax return.
(2) In determining which year or years to claim the credit, the qualified employer shall claim the credit for each calendar month of 2010 as that month corresponds to the qualified employer's taxable year.
(3) If the qualified employer's 2009 tax year includes 2010 calendar months, the qualified employer shall claim the credit on the qualifying employer's 2009 tax return for those 2010 calendar months corresponding to the qualified employer's 2009 taxable year.
(b) Amount of credit.-
(1) Except as provided in paragraph (2) of this subsection, the amount of credit that may be claimed in a taxable year for each qualified employee is $416.67 multiplied by the number of months the qualified employee was employed in that taxable year, provided that the total number of months for which the credit is claimed for a particular qualified employee does not exceed 12 months.
(2) If, at the time of filing, a qualified employer's tax return for taxable year 2010 includes a qualified employee who remained employed during calendar year 2011, a qualified employer may claim on that tax return the tax credit applicable to that employee for the months during 2011, provided that the total number of months for which the credit is claimed for a particular qualified employee does not exceed 12 months.
(c) Refunds.- If the credit allowed under this section in any corresponding taxable year exceeds the total tax otherwise payable by the business entity or individual for that taxable year, the business entity or individual may claim a refund in the amount of the excess.
(d) Refunds - Application.- A refund payable under subsection (c) of this section:
(1) operates to reduce the income tax revenue from corporations if the person entitled to the refund is a corporation subject to taxation under Title 10 of the Tax - General Article; and
(2) operates to reduce the income tax revenue from individuals if the person entitled to the refund is:
(i) an individual subject to the income tax under Title 10 of the Tax - General Article; or
(ii) an organization exempt from taxation under § 501(c) of the Internal Revenue Code.
(e) Effect of delinquency in certain other payments.- If, at the time of filing, a person is delinquent in the payment of unemployment insurance contributions, State income taxes, withholding taxes, or other debt or delinquent accounts due to the State, the person is not eligible for a credit under this subtitle.
[2010, ch. 1.]