Under Maryland tax law Article §10-724, an income tax credit of up to $500 for individual taxpayers (and up to $1000 for couples filing jointly) may be taken to offset the purchase of oyster aquaculture float(s).
Remember, a tax credit is NOT the same as a tax deduction. Credits apply directly against your tax liability, while deductions only apply against your tax basis. In a practical sense, tax credits are a dollar for dollar "rebate" on the money you spent towards allowable items or services. By claiming the available "oyster aquaculture float" tax credit, you are fully recovering the purchase of your oyster float(s), up to the $500/$1000 maximum.
So what does this mean to you? For example, a qualifying household normally paying $2500 in Maryland income taxes , would instead pay only $1500 to Maryland after claiming the tax credit for their $1000 purchase of oyster floats... The cost of the purchase is fully offset by the tax credit - and the float, as well as the accompanying oysters, are yours to keep! Qualifying taxpayers have literally nothing to lose !!!
To qualify for the tax credit, you must:
- file Maryland income taxes
- purchase oyster aquaculture floats
- maintain the floats at a privately owned pier
To claim the tax credit, you must:
- file your Maryland income taxes using "long form" 502
- include form 502CR, Tax Credits for Individuals, in your tax returns (link provided at left).
It's just that simple !!!