502S: Maryland Historic Revitalization Tax Credit (2024)
Maryland · Comptroller of Maryland · Used for tax years 2024
Maryland Form 502S calculates the Historic Revitalization Tax Credit for rehabilitation of certified historic structures in Maryland completed during the 2024 tax year. It reports certified rehabilitation expenditures, the calculated credit, and any reduction for credit recapture
Who files this form
Use Form 502S to calculate the Maryland Historic Revitalization Tax Credit for rehabilitation of certified historic structures in Maryland completed in the 2024 tax year.
The Maryland Historical Trust (MHT) must certify the rehabilitation as a substantial rehabilitation and certify the qualified costs.
Corporations and pass-through entities must file electronically to claim or pass on this credit. Nonprofit organizations certified as having a qualified rehabilitation may also claim the credit.
What you'll need
- Your completed Form 502S.
- A copy of your approved MHT Certification Application (Part 3), showing the project number, property location, and certified expenditures.
- Your taxpayer identification number. If the credit comes from another entity, provide that entity’s federal employer identification number and check the corresponding box.
- For multiple properties, a separate Form 502S with lines 1–5 completed and the required certification for each property.
- Any applicable recapture amounts needed to calculate line 6.
How to file
Complete Form 502S using the project information and certified expenditures from your approved Certification Application (Part 3). Print using blue or black ink only.
Transfer the amount on line 6 as follows, including a negative amount if applicable:
- Forms 502 or 505: Enter it on line 2, Part CC of Form 502CR.
- Form 504: Add it on line 30.
- Corporation and pass-through entity returns: Claim it on line 1, Part DDD of Form 500CR.
Attach the completed Form 502S and a copy of the approved Certification Application (Part 3) to Form 502CR, Form 504, or Form 500CR, as applicable, with your return.
Corporations and pass-through entities must file electronically. A 501(c)(3) corporation should complete the Form 502S section of its electronically filed corporation income tax return. Trusts should attach Form 502S to Form 504.
Send photographs to MHT, not to the Revenue Administration Division:
Maryland Historical Trust
100 Community Place, 3rd Floor
Crownsville, MD 21032-2023
Common mistakes
- Leaving out required attachments: Failure to attach Form 502S and the approved Certification Application (Part 3) will result in the credit being disallowed.
- Sending photographs to the wrong office: Send all photographs to MHT, not the Revenue Administration Division.
- Reusing expenditures: The same expenditures may not be used to qualify for a credit in another tax year.
- Overlooking the multiple-property instructions: Check the multiple-property box and complete lines 1–5 on a separate Form 502S for each property, with its required certification.
Questions people ask
How much is the credit?
The base credit is 20% of certified rehabilitation expenditures. An additional 5% may apply to a commercial rehabilitation of a certified historic structure that is a high performance building. Small commercial projects do not qualify for the additional credit. The maximum credit is $5,000,000 for commercial rehabilitations and $50,000 for other rehabilitations, including small commercial projects.
Can the credit be refunded?
The rehabilitation credit may be refunded if it exceeds your State tax liability.
How do I claim a credit for more than one property?
Complete lines 1–5 on a separate Form 502S for each property and attach each property’s required certification. Add the line 5 amounts for all properties. Enter that total, minus total recaptures for all properties, on line 6. If the result is negative, enter the negative amount.
When must a credit be recaptured?
For commercial rehabilitations, disqualifying work or disposal of the certified rehabilitation within the first five years, starting with the first year the credit was claimed, triggers recapture. For other rehabilitations, disqualifying work during that period triggers recapture. The recapture percentages are 100% in the first year, 80% in the second, 60% in the third, 40% in the fourth, and 20% in the fifth.
Where can I get help?
For certification questions, contact MHT at 410-697-9535 or visit mht.maryland.gov. For credit calculation questions, visit marylandtaxes.gov, email TAXHELP@marylandtaxes.gov, or call 1-800-638-2937 or 410-260-7980 from Central Maryland.