HARRY W. NICE, GOVERNOR. 37

in a return rendered under this sub-title. In the case of
taxpayers who keep regular books of account on an accrual
basis and according to standard accounting practice, there
may be deducted, in lieu of the foregoing, additions to re-
serves for bad debts, under such rules as the Comptroller may
prescribe; if the Comptroller at any time shall deem the
reserve excessive, he may restore such excess to income either
in a subsequent year or as a part of the income of the tax-
able year and assess it accordingly.

(h) The actual amount paid during the taxable year for
repairs to and maintenance of buildings and machinery; pro-
vided that no deductions shall be made for any repair which
is chargeable to residence property occupied by its owner,
or for depreciation thereof; and the annual value of the
estimated rental thereof shall not be included in the income
subject to taxation.

(i) All fire, tornado and casualty insurance premiums paid
during the taxable year in connection with property held for
investment or business.

(j) A reasonable allowance for exhaustion, wear and tear
of property used in the trade or business, including a reason-
able allowance for obsolescence; and including in the case of
natural resources allowances for depletion as permitted by
reasonable rules and regulations which the Comptroller is
hereby authorized to promulgate.

(k) Dividends received during the taxable year upon stock
of national banks and dividends received during the taxable
year upon stock of banks and trust companies organized under
the laws of this State.

(1) Contributions or gifts actually paid by individuals
within the taxable year to or for the use of: (1) this State, its
institutions, or any political sub-division of the State for
exclusively public purposes; (2) any corporation, or trust,
or community fund, or foundation, organized and operated
exclusively for religious, charitable, scientific, literary, mili-
tary or educational purposes exclusively in Maryland, no part
of the net income of which inures to the benefit of any private
shareholder or individual; or (3) a fraternal society, or
organization operating under the lodge system, but only it
such contributions or gifts are dedicated exclusively for re-
ligious, charitable, scientific, literary or educational purposes
in Maryland, to an amount which in all the above cases com-
bined does not exceed fifteen per cent. (15%) of the tax-
payer's net income as computed without the benefit of this
sub-section. Such contributions or gifts shall be allowable as
deductions only if verified under the rules and regulations pre-
scribed by the Comptroller.
49