1072

LAWS OF MARYLAND

Ch. 119

FOR the purpose of conforming State tax treatment of
deductions for the preservation of historic property to
the federal law by eliminating the amortization
deduction for rehabilitation of certain property, the
disallowances of certain demolition losses and
expenses, the depreciation methods for certain
property, and deductions for certain transfers of
property; providing certain amortization deductions for
certain nondepreciable historic property; defining
terms; providing for applicability of this Act to
certain years; and generally relating to income taxes
on historic properties,

BY repealing and reenacting, with amendments,

Article 81 — Revenue and Taxes

Section 281A

Annotated Code of Maryland

(1975 Replacement Volume and 1977 Supplement)

SECTION 1- BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 81 - Revenue and Taxes

281A.

(a)    As used in this section, the following words have
the meanings indicated.

(b)  "Certified NONDEPRECIABLE historic structure" means
a building or structure which is (either (i) listed in the
National Register (16 U.S.C.A. 470), or (ii) located in the
registered historic district (16 U.S.C.A. 470) and included
in the Maryland inventory of historic sites] NOT OF A
CHARACTER SUBJECT TO THE DEPRECIATION ALLOWANCE PROVIDED IN
§ 167 OF THE INTERNAL REVENUE CODE AND WHICH, BUT FOR NOT
BEING OF SUCH CHARACTER, WOULD BE A "CERTIFIED HISTORIC
STRUCTURE" AS DEFINED IN § 191 OF THE INTERNAL REVENUE CODE.

(c)  "Certified rehabilitation" means any rehabilitation
of a certified NONDEPRECIABLE historic structure [or of any
other structure located in a registered historic district]
which is consistent with the historic character of that
property or district as determined in accordance with
regulations promulgated by the Comptroller.

(d)    "[Amortization] AMORTIZABLE basis" means the
portion of the basis attributable to [additions to capital
account which are] amounts expended for certified
rehabilitation.

[(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