Please Note: Tax credits are subject to the availability of funds for tax credits in the Health Enterprise Zone's budget and will be awarded on a first-come, first-served basis as determined by the Department of Health and Mental Hygiene (DHMH) in its sole discretion.
FUNDING FOR THE HEZ TAX CREDIT PROGRAM ENDED ON JUNE 30,2017. APPLICATIONS ARE NO LONGER BEING ACCEPTED.
HEALTH CARE PRACTITIONER PERSONAL INCOME TAX CREDIT is available to individual health care practitioners who meet the program criteria listed below and receive a letter of support from the HEZ where the practitioner practices. An eligible practitioner may apply for a tax credit in an amount equal to 100% of the amount of State income tax for income derived from practice in the HEZ.
In order to qualify for the Health Care Practitioner Personal Income Tax Credit, a provider is required to:
- Be a health care practitioner who is licensed or certified under the health occupations article and who provides either: (1) primary care, including obstetrics, gynecological services, pediatric services, or geriatric services; (2) behavioral health services, including mental health or alcohol and substance abuse services; or (3) dental services.
- Accept Medicaid recipients and uninsured patients as demonstrated by attestation; and,
- Demonstrate cultural, linguistic, and health literacy competency as shown on application.
Steps to Receive Health Care Practitioner Personal Income Tax Credit
- Obtain a letter of support from the appropriate HEZ (contact information for each HEZ is listed below)
- Complete and submit preliminary application to DHMH
- Receive preliminary certification from DHMH, if eligible
- Complete tax return, wait for return to be processed, and then file Form 129 with the Comptroller’s office
- Receive stamped tax return document from the Comptroller’s office
- Apply for final certification with DHMH including stamped tax return document
- Receive final certification of eligibility from DHMH
- Once you receive final certification you may apply for the tax credit through the Comptroller's Office. You must fill out an amended income tax return (Form 502CR) and submit to the Comptroller of Maryland.
EMPLOYER HIRING TAX CREDIT enables employers to receive $5,000 per year over a two-year period per employee.Employers that hire health care practitioners, community health workers, or interpreters and receive a letter of support from the HEZ where they practice are eligible to apply.The Employer Hiring Tax Credits were impacted by legislation (HB 668) that was approved by the Maryland General Assembly during the 2014 legislation session and signed into law in the spring of 2014.
A Qualifying HEZ Employer that has hired a qualified employee(s) may apply for this tax credit.
- The HEZ Employer must provide one or more of the following services in HEZ:
- Primary care, including obstetrics, gynecological services, pediatric services, or geriatric services;
- Behavioral health services, including mental health or alcohol and substance abuse services; or
- Dental services.
- A Maryland HEZ Employer includes a corporation, business trust, partnership, limited liability company, association, or any other legal or commercial entity that a health care practitioner owns in whole or in part.
See the Frequently Asked Questions sheet for the definition of 'Qualified Employee' and 'Qualified Position.'
Steps to Receive the Employer Hiring Tax Credit
- Obtain a letter of support from the appropriate HEZ.
- Complete and submit preliminary application to DHMH. Receive preliminary certification from DHMH, if eligible
- Complete full application for final certification and send to DHMH. NOTE: The full application can only be submitted after jobs have been created and filled for 12 months. Employer can receive certification after the provider works for 12 months and can receive the first installment; however, the provider needs to be working for 24 months to receive the full installment.
- Receive final eligibility certification from DHMH
- Apply for tax credit through the Comptroller of MD (Form 500CR)
- Await tax credit, which is received in two equal installments per year.
- File 24-month verification form with DHMH.
- If requirements are met, then file for 2nd year tax credit through the Comptroller of MD. You must also fill out an amended income tax return (Form 500 CR) and submit to the Comptroller of Maryland.
Employer Hiring Tax Credit Frequently Asked Questions
Maura Dwyer, DrPH, MPH
Senior Health Policy Advisor
Health Enterprise Zone Initiative
Maryland Department of Health and Mental Hygiene
ELIGIBLE ZIP CODES and ZONE CONTACT INFO
Zone: Capitol Heights (Prince George’s County)
Zip Code: 20743
Contact: Janine Jackson
Zone: Dorchester/Caroline County
Zip Code: 21613, 21631, 21664, 21659, 21835, 21643, 21632
Contact: Terri Hughes
Zone: Greater Lexington Park (St. Mary’s County)
Zip Code: 20653, 20634, 20667
Contact: Lori Werrell
Zone: West Baltimore
Zip Code: 21216, 21217, 21223, 21229
Contact: Maha Sampath