Comptroller of Maryland. Serving the People. Peter Franchot, Comptroller
Maryland Taxes
Maryland Taxes: Find all tax-related information and services. Maryland's Money: Resource for transparent financial reporting. Comptroller of Maryland: Information and resources for government agencies, state employees, vendors, and the general public. Media Services: Outlet for agency and Comptroller news. Online Services: Links to all agency online services and applications. Search Engine: Find it Fast! Translate the website to many languages Home Page

Endow Maryland Tax Credit

Businesses or individuals who make a donation to a qualified permanent endowment fund at an eligible community foundation may be eligible for a credit against the Maryland State income tax.

The credit may be taken against corporate income tax, personal income tax, insurance premiums tax or public service company franchise tax. However, the same credit may not be applied to more than one tax type.

To qualify for the credit:

Donations of $500 or more of cash or publicly traded securities made by the taxpayer to a “qualified permanent endowment fund” at an “eligible community foundation” that meets certain requirements are eligible for tax credits. Individuals and businesses may claim a maximum of $50,000 in credits per year, representing a donation of no more than $200,000.

The taxpayer must apply to the Maryland Department of Housing and Community Development (DHCD) for a certification for the donation.

For any tax year, the sum of all Endow Maryland tax credits, including any carryover credits, may not exceed the lesser of $50,000 or the total amount of tax otherwise payable by the individual and/or business for the tax year. Excess credits may be carried over for five (5) years.

How the credit is calculated:

The credit is 25% of the value of the approved donation. Each business or individual may claim a credit of up to $50,000. Businesses and individuals claim the Endow Maryland Tax Credit by filing an electronic tax return supporting Business Income Tax Credit Form 500CR. An electronic return must be filed to claim this credit against the Maryland income tax. See exception below.

Exception: Individuals who are eligible to claim the Endow Maryland Tax Credit, and who are not PTE members may elect to claim this credit on Part I of Form 502CR, instead of claiming the credit on Part V of Form 500CR. Taxpayers electing to use Form 502CR to claim the Endow Maryland Tax Credit are not required to file their return electronically.  However, an individual may not claim this credit on both Form 500CR and Form 502CR. PTE members who are eligible for this credit must claim the credit on Business Income Tax Credit Form 500CR.

Individuals who anticipate having a carryover of the Endow Maryland Tax Credit are advised to use Form 500CR instead of Form 502CR.

See Form 500CR Instructions for specific line-by-line instructions. Form 500CR must still be filed electronically.

Add Back required:

Whenever the Endow Maryland Tax Credits are claimed against the income tax, an addition modification must be included for the amount deducted as a donation to the extent that the amount of donation is included in an application for the Endow Maryland Tax Credit.

Documentation required:

A copy of the required approval from the Department of Housing and Community Development DHCD must be attached to the appropriate electronic Maryland Income Tax Return - Form 500 for Corporations, Form 510 and Form 510 Schedule K-1 for Pass-Through Entities, and Form 502 for individuals, electing to use Form 500CR. The Form 500CR section of the electronic return must also be completed.

A copy of the required approval from the DHCD must be attached to Form 502 for those individuals, electing to use Form 502CR.


Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite 450
Baltimore, MD 21202
Phone: 410-209-5800

Links for Business Tax Credits
Tax Publications
Business Tax Credits
  Aerospace, Electronics, or Defense Contract Tax Credit
  Apprentice Employee Tax Credit
  Biotechnology Investment Incentive Tax Credit
  Businesses That Create New Jobs Tax Credit
  Cellulosic Ethanol Technology Research and Development Tax Credit
  Clean Energy Incentive Tax Credit
  Community Investment Tax Credit
  Commuter Tax Credit
  Cybersecurity Incentive Tax Credit
  Employer-Provided Long-Term Care Insurance Tax Credit
  Endow Maryland Tax Credit
  Endowments of Maryland Historically Black Colleges and Universities Tax Credit
  Enterprise Zone Tax Credit
  Film Production Activity Tax Credit
  Green Building Tax Credit
  Heritage Structure Rehabilitation Tax Credit
  Job Creation Tax Credit
  Maryland Disability Employment Tax Credit
  Maryland Employer Security Clearance Costs Tax Credits
  Maryland-Mined Coal Tax Credit
  One Maryland Economic Development Tax Credit
  Oyster Shell Recycling Tax Credit
  Qualified Vehicle Tax Credit
  Research and Development Tax Credits
  Wineries and Vineyards Tax Credit
Download for Adobe Reader Homepage