A telecommunications company that is a public utility is allowed a credit for a portion of the total property taxes paid by the company on its operating real property in Maryland, other than operating land, that is used in its telecommunications business.

The credit may be taken only against corporate income tax.

Only corporations may claim the tax credit.

To Qualify For The Credit

The business must be a public utility that is a telecommunications company. The business must also have paid property taxes on its operating real property in Maryland, other than operating land, that is used in its telecommunications business.

How The Credit Is Calculated

The credit is 60 percent of the total state, county and municipal corporation property taxes paid by the public utility during the tax year on its operating real property used in its telecommunications business, other than operating land. The credit cannot exceed the state income tax liability after deducting other allowable income tax credits.

If the credit is more than the tax liability, the unused credit may NOT be carried forward to any future tax years.

For More Information, Contact:

Revenue Administration Division

Comptroller of Maryland

(410)260-7920 from Central Maryland; or

1-800-MD-TAXES from elsewhere

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