38                                        LAWS OF MARYLAND                              [Ch. 2

General Hospital, Incorporated, of Sandy Spring,
Maryland, shall be construed to be a corporation of this
State, organized and operated exclusively for charitable
and educational purposes, no part of the net earnings of
which inures to the benefit of any private shareholder or
individual,

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)]
(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 31, 1973,
the oil percentage depletion allowance as claimed and
allowed under Section 613 of the Internal Revenue Code.