SPIRO T. AGNEW, Governor                      1323

PRIOR TO JANUARY 1, 1967, WHICH WAS NOT INCLUD-
ABLE IN "GROSS INCOME" UNDER SECTION 280(A) OF
ARTICLE 81 OF ANNOTATED CODE OF MARYLAND IN
EFFECT ON THE DATE OF REALIZATION OF SAID GAIN
OR GAINS.

280A.

(a)    The net income of a corporation shall be the taxable income
of such taxpayer as defined in the laws of the United States as
amended from time to time and for the corresponding taxable period
or in the case of a regulated investment company, investment com-
pany taxable income as defined in the laws of the United States
as amended from time to time and for the corresponding taxable
period, except as hereinafter modified.

(b)    There shall be added to the taxable income of such tax-
payer: (1) the net operating loss [carry-overs] deduction as de-
fined in Section 172 of the Internal Revenue Code, AS AMENDED
FROM TIME TO TIME and (2) income taxes imposed by the State
of Maryland, and any other state, the District of Columbia and any
political subdivision of the State of Maryland or any other state.

(c)    There shall be subtracted from taxable income of such tax-
payer the following items to the extent included in Federal income:
(1) operating revenue subject to gross receipts taxes imposed by
this Article (less related expenses) of railroads, other public utilities
and contract carriers; (2) fifty (50) per cent of the excess of net
long-term capital gain[s] over net short-term capital loss [result-
ing from the sale or other disposition of any capital asset and any
property commonly referred to as Section 1231 assets] as defined
in the laws of the United States, as amended from time to time;
(3) the amount of any refunds of income taxes paid to the State
of Maryland, any other state, the District of Columbia, and any
political subdivision of the State of Maryland and any other state;
and (4) dividend income to the extent included in taxable income
and any interest income other than interest earned in the conduct
of a business, on loans made under the provisions of Article 58A
of this Code, and interest earned on business accounts, notes receiv-
able and installment contracts.; AND (5) FOR TAXABLE
YEARS BEGINNING AFTER DECEMBER 31, 1968, THE
AMOUNT OF CAPITAL GAINS INCLUDED THEREIN WHICH
WAS REALIZED FROM THE SALE, EXCHANGE OR OTHER
DISPOSITION OF PROPERTY PRIOR TO JANUARY 1, 1967,
WHICH WAS NOT INCLUDABLE IN "GROSS INCOME" UN-
DER SECTION 280A (A) OF ARTICLE 81 OF ANNOTATED
CODE OF MARYLAND IN EFFECT ON THE DATE OF
REALIZATION OF SAID GAIN OR GAINS.

281.

(a) If a resident individual has itemized his deductions from
adjusted gross income in determining his federal taxable income,
he may elect in determining his taxable income under this article
to deduct the sum of such itemized deductions (other than deduc-
tions for personal exemptions):

(1) Reduced by any amount thereof representing income taxes
imposed by the State of Maryland, any political subdivision thereof,