If you donated an easement to the Maryland Environmental Trust or the Maryland Agricultural Land Preservation Foundation, you may be entitled to a tax credit on your Maryland income tax return.

The credit is calculated as the difference between the value of the property before and after the donation, less any amounts received for easement. You are entitled to a credit of $5000 or the amount of state income tax that you owe for the taxable year, whichever is less.

QUALIFICATION

To qualify for the credit, you must meet the following conditions:

• The easement must preserve open space, natural resources, agriculture, forest land, watersheds, significant ecosystems, view sheds or historic property.
• An appraisal by a certified real estate appraiser of the fair market value of the property must be done before and after the donation.
• The easement must have been accepted and approved by the Maryland Board of Public Works after June 30, 2001.

CLAIMING THE CREDIT

The credit can be claimed on Maryland Forms 502, 504, 505, or 515. It is not available on short Form 503.

To claim the credit:

• Complete your Maryland return up to the line labeled "Maryland Tax."
• Complete Part F of Form 502 CR. Fiduciaries must complete the preservation and conservation easements worksheet included in the fiduciaries tax booklet.
• File Form 502CR with your Maryland return.

If the credit exceeds your tax liability, any unused credit may be carried forward for up to 15 years, subject to the $5000 and state income tax amount due limitations.

For More Information, Contact:

Maryland Environmental Trust

(410)514-7900 or 1-877-514-7900

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