28

LAWS OF MARYLAND

[Ch. 1

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)]
(3) dividends received by individuals excluded from
federal adjusted gross income pursuant to § 116 of the
Internal Revenue Code; and [(5)] (4) 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)] (1) 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; [(3)] (2) the net capital
loss carry—back as defined in § 1212 of the Internal
Revenue Code, as amended from time to time and [(4)] (3)
for all taxable years beginning after December 3 1, 1973,
the oil percentage depletion allowance as claimed and
allowed under Section 613 of the Internal Revenue Code.

(c)   There shall be subtracted from taxable income
of such taxpayer 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) percent of the
excess of net long-term capital gain over net short—term
capital loss as defined in the laws of the United States,
as amended from time to time; (3) ] (2) 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