504CR: Business Income Tax Credits for Fiduciaries (2025)
Maryland · Comptroller of Maryland · Used for tax years 2025
Maryland Form 504CR is used by fiduciaries to calculate and report business income tax credits for 2025. It covers credits such as enterprise zone, job creation, research and development, and work opportunity tax credits and must be attached to Form 504.
Who files this form
Maryland Form 504CR is for fiduciary taxpayers required to file Form 504 who are claiming business income tax credits against their fiduciary income tax. This includes fiduciaries that receive a Maryland Schedule K-1 from a pass-through entity or another fiduciary establishing a basis for a credit.
If you are not a fiduciary taxpayer required to file Form 504, you may not use Form 504CR. The text directs you to file your Maryland return electronically to claim business credits available through Form 500CR.
A fiduciary eligible for a business credit but not reporting taxable income on federal Form 1041 must file the appropriate return electronically and refer to the Form 500CR instructions.
What you'll need
Have the following ready, as applicable to the credits you claim:
- Form 504: Form 504CR must be attached to it. Use the name shown on Form 504 and provide your taxpayer identification number.
- Required credit certifications: Include certifications for credits marked with two asterisks on Form 504CR.
- Maryland Schedule K-1 (510/511): Include this when claiming your share of credits from a pass-through entity, along with the entity’s FEIN.
- Details for multiple entities: If credits come from more than one entity, include a list showing each entity’s name, FEIN, credit type and credit amount.
- Federal Form 3800: Include it if claiming the Work Opportunity Tax Credit in Part O.
- Credit calculation information: Depending on the credit, the form asks for qualified employee counts, wages, expenses, approved investments, contributions or certified credit amounts.
How to file
The text requires all business income tax credits to be claimed on an electronically filed return. Attach Form 504CR to Form 504 and include the required certifications and supporting attachments.
- Complete the parts for the credits you are claiming.
- Enter the allowable nonrefundable credit from Part AAA, line 26, on Form 504, line 16.
- Add the refundable credit total from Part CCC, line 10, to Form 504, line 33. If the total is negative, add it as a negative number.
The supplied text does not provide a tax-return mailing address.
Common mistakes
- Leaving out certifications: The form repeatedly requires certification attachments for credits marked with two asterisks.
- Missing pass-through entity information: Check the box for credits derived from another entity and provide the PTE’s FEIN. The instructions warn that missing this information can cause your credit to be disallowed.
- Claiming a fiscal-year PTE credit in the wrong year: Claim it for the year in which the PTE’s fiscal year ends, even if its Schedule K-1 shows the beginning year.
- Skipping an income addition: Credits from Parts A, C, J-I, K-I, K-II, V and BB require an addition to income. Follow the note in Part AAA to calculate the amount for Form 504, Schedule A, line 3.
- Completing Part BBB when it does not apply: Do not complete the excess credit carryover calculation if Part AAA, line 24, is less than or equal to line 25.
Questions people ask
Do I need to recalculate a credit received from a pass-through entity?
No. If your distributive share is reported on Maryland Schedule K-1 (510/511), you do not need to complete the credit calculations. Carry the amounts entered in the credit sections to the appropriate fields in Summary Parts AAA, BBB or CCC.
Does Form 504CR include both refundable and nonrefundable credits?
Yes. Part AAA summarizes nonrefundable business tax credits, and Part CCC summarizes refundable business income tax credits.
What if credits come from more than one entity?
Include a list with each entity’s name, FEIN, type of credit and credit amount. The instructions also call for the applicable PTE Schedules K-1 or corporate statements showing your share of the credit. Consolidated or combined statements are accepted.
What if I have applied for a FEIN but have not received it?
Enter “APPLIED FOR” followed by the application date. If you have not applied for a required FEIN, the instructions say to do so immediately.