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LAWS OF MARYLAND

Ch. 782

the registered historic district (15 U.S.C.A. 470) and
[is certified by the United States Secretary of Interior
or his delegate as being of historic significance to the
district] INCLUDED IN THE MARYLAND INVENTORY OF HISTORIC
SITES.

(c) "Certified rehabilitation" means any
rehabilitation of a certified historic structure or of
any other structure located in a registered historic
district which [the Secretary of the Interior has
certified as being consistent with the historic character
of that property or district] IS CONSISTENT WITH THE
HISTORIC CHARACTER OF THAT PROPERTY OR DISTRICT AS
DETERMINED IN ACCORDANCE WITH REGULATIONS PROMULGATED BY
THE COMPTROLLER.

(e) "Substantially rehabilitated property" means
property described in § 12 50 of the Internal Revenue Code
with respect to which the additions to capital account
during the 24—month period ending on the last day of any
taxable year, reduced by any amounts allowed or allowable
as depreciation or amortization allowable thereto,
exceeds the greater of the adjusted basis of the property
OR $5,000. THE ADJUSTED BASIS OF THE PROPERTY shall be
determined as of the beginning of the first day of the
24—month period, or of the holding period of the property
(within the meaning of § 1250 (c) of the Internal Revenue
Code) , whichever is later.

(m) In the case of the demolition of a certified
historic structure:

(1)    No deduction otherwise allowable under §
280 (a) of Article 81 of this Code may be allowed to the
owner or lessee of the structure for any amount expended
for the demolition or any loss sustained on account of
the demolition; and

(2)    Amounts described in paragraph (1) shall
be treated as property chargeable to capital account with
respect to the land on which the demolished structure was
located[; and

(3)    For purposes of this subsection, any
building or other structure located in a registered
historic district shall be treated as a certified
historic structure unless the United States Secretary of
the Interior has certified, prior to the demolition of
the structure, that the structure is not of historic
significance to the district].

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1976.

Approved May 17, 1976.