.11 Short Taxable Years.

A. Eligible Expenses. A taxpayer may only claim the credit for Maryland qualified research and development expenses incurred during its taxable year. If the business entity has a short taxable year, only the Maryland qualified research and development expenses incurred during the short taxable year are allowed on the short year return.

B. If the taxpayer incurs Maryland qualified research and development expenses in 2 taxable years during a calendar year, one of which is a short taxable year, the business entity may only claim a credit on the short taxable year return in an amount equal to the total credits certified by the Department multiplied by a fraction:

(1) The numerator of which is the Maryland qualified research and development expenses incurred during the short taxable year; and

(2) The denominator of which is the Maryland qualified research and development expenses incurred during the entire calendar year.