A. A person operating an agricultural operation that incurs additional commercial fertilizer costs due to conversion of nutrient use to meet the requirements of a phosphorus based nutrient management plan is eligible for a State income tax credit under this chapter, if:
(1) A nutrient management plan meeting the requirements of COMAR 15.20.08 has been submitted to the Department;
(2) The conversion of nutrient use is for the purpose of complying with the requirements set forth in COMAR 15.20.08 for the implementation of nutrient recommendations;
(3) Those costs take into account management by the taxpayer of all acreage in their agricultural operation;
(4) Those costs are related to the purchase of additional quantities of commercial fertilizer, specialized blends, or formulations, and not due solely to product price increases; and
(5) The Department has approved a Certificate of Additional Fertilizer Expense for Income Tax Deduction, indicating the amount of credit that may be claimed.
B. The credit may be taken against the following types of taxes:
(1) Personal income tax; or
(2) Corporate income tax.
C. The credit may be claimed by the following types of agricultural operations:
(1) Sole proprietorships;
(2) Corporations; and
(3) Pass-through entities, including partnerships, S-corporations, and limited liability companies on behalf of their partners, shareholders, and members, respectively.