472 LAWS OF MARYLAND. [CH. 277

(f) Debts due the taxpayer arising out of a trade or busi-
ness the income from which is subject to taxation under this
sub-title, ascertained to be worthless and charged off within
the taxable year. In the case of a debt existing on January
1st, 1937, not more than its fair market value on that date
shall be deducted. In the case of taxpayers who keep regular
books of account, on an accrual basis and according to stand-
ard accounting practice, there may be deducted, in lieu of the
foregoing, additions to reserves 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 the income either in a subsequent year or as a
part of the income of the taxable year in which deducted.

(g) Debts arising after January 1, 1937, ascertained to be
worthless and charged off within the taxable year from un-
paid salaries, wages, rent or any similar item of taxable
income to the extent that the income which said item repre-
sents has been included as income by the taxpayer in a return
rendered under this sub-title.

(h) The actual amount paid or incurred during the taxable
year for repairs to and maintenance of buildings and
machinery, the income from which is taxable hereunder.

(i) All fire, tornado and casualty insurance premiums paid
or accrued during the taxable year in connection with prop-
erty the income from which is subject to taxation under this
sub-title.

(j) A reasonable allowance for exhaustion, wear and tear
of property used in trade or business, including a reasonable
allowance for obsolescence, and in the case of natural re-
sources, allowance for depletion, as permitted by rules and
regulations of the Comptroller.

(k) 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 ex-
clusively for public purposes; (2) any corporation, or trust,
or community fund, or foundation, no part of the net income
of which inures to the benefit of any private shareholder or in-
dividual, but only if such contributions or gifts are dedicated
exclusively for religions, charitable, scientific, literary
or educational purposes; or (3) a fraternal society or
organization, operating under the lodge system, but only if
such contributions or gifts are dedicated exclusively for re-
ligious, charitable, scientific, literary or educational purposes;
to an amount which, in all the above cases combined,
does not exceed fifteen per cent. (15%) of the taxpayer's
net income as computed without the benefit of this sub-section.
Such contributions or gifts shall be allowable as deductions