848                                        LAWS OF MARYLAND                                Ch. 400

280.

(b) There shall be added to federal adjusted gross income: (1) interest or
dividends, (less related expenses), on obligations or securities of any state or of a
political subdivision or authority thereof (other than this State and its political
subdivisions and authorities); (2) salaries and wages and interest or dividends on
obligations of any authority, commission, instrumentality, territory or possession
of the United States or of any foreign government, which by the laws or treaties of
the United States are exempt from federal income tax but not from State income
taxes; (3) EXCEPT IN THE CASE OF DISASTER LOSSES, AS DEFINED IN
§ 165(H) OF THE INTERNAL REVENUE CODE AS AMENDED FROM
TIME TO TIME, OCCURRING ON OR AFTER JUNE 1, 1972, the net
operating loss deduction as defined in § 172 of the Internal Revenue Code, as
amended from time to time; (4) dividends received by individuals excluded from
federal adjusted gross income pursuant to § 116 of the Internal Revenue Code; and
(5) distributions of corporate prior years' earnings not previously taxed in
Maryland to individuals and current year losses of corporations claimed for the
taxable year by individuals, resulting from an election of a small business
corporation, as defined by § 1371 of the Internal Revenue Code as amended from
time to time, to be taxed in accordance with the provisions of subchapter "S" of
the Internal Revenue Code.

280A.

(b) There shall be added to the taxable income of such taxpayer: (1) EXCEPT
IN THE CASE OF DISASTER LOSSES, AS DEFINED IN § 165(H) OF THE
INTERNAL REVENUE CODE AS AMENDED FROM TIME TO TIME,
OCCURRING ON OR AFTER JUNE 1, 1972, the net operating loss deduction
as defined in § 172 of the Internal Revenue Code, as amended from time to time;
(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; and (3) the net capital loss carry-back as defined in § 1212 of the
Internal Revenue Code, as amended from time to time.

SECTION 2. AND BE IT FURTHER ENACTED, That nothing in this Act
shall be construed to prevent a person from filing an amended State income tax
return to carry back a loss sustained as the result of a disaster occurring on or
after June 1, 1972, in accordance with the provisions of § 172 of the Internal
Revenue Code, as amended from time to time.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take
effect July 1, 1973.

Approved May 21, 1973.

CHAPTER 401
(Senate Bill 458)

AN ACT to add new Subsection 12F(e) to Article 81 of the Annotated Code of
Maryland ([[1969 Replacement Volume and]] 1972 Supplement), title
"Revenue and Taxes," subtitle "What Shall Be Taxed and Where," to follow
immediately after Section 12F(d) thereof, to provide mandatory tax credits for
certain persons in Anne Arundel County.