BLAIR LEE III, Acting Governor                          681

MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 81 — Revenue and Taxes

280.

(c) There shall be subtracted from federal adjusted
gross income: (1) interest or dividends on obligations of
the United States and its territories and possessions or of
any authority, commission or instrumentality of the United
States and any other income to the extent includable in
gross income for federal income tax purposes, but exempt
from State income taxes under the laws of the United States;
(2) payments received by policemen and firemen from pension
systems for injuries or disabilities arising out of and in
the course of their employment as policemen or firemen; (3)
for all taxable years ending after December 31, 1972,
amounts received by an individual who has attained the age
of 65 years before the close of the taxable year as an
annuity, pension, or endowment under a private, municipal,
State or federal employee retirement system, and included in
such individual's federal adjusted gross income, this
subtraction shall not exceed an amount equal to the average
annual benefit received in Maryland by persons who retired
at the age of 6 5 or older under the Social Security and
Railroad Retirement Acts for the prior calendar year. The
Comptroller shall determine the amount of the average
benefit annually and for the purposes of this subparagraph
may allow the subtraction to the nearest $100. The allowed
subtraction shall be reduced by the amount of old age,
survivors, or disability benefits received under the Social
Security Act, the Railroad Retirement Act, or both, as the
case may be; (4) in the case of persons retired prior to
January 1, 1967, payments received which represent uncovered
contributions to a retirement system over and above any
amount of such contributions remaining to be recovered tax
free on the federal return, limited to an amount which
together with the amount of any tax-free exclusion in the
federal return does not exceed the exclusion which was
permitted under the laws and regulations of this State prior
to the year 1967; (5) to the extent included, 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 of any other state;
(6) to the extent included, distributions to beneficiaries
of accumulated income on which income tax has been paid by a
fiduciary to this State; (7) EXPENSES FOR HOUSEHOLD AND
DEPENDENT CARE SERVICES DETERMINED AND CALCULATED AS
EMPLOYMENT-RELATED EXPENSES UNDER SECTION 44A OF THE
INTERNAL REVENUE CODE, AS AMENDED FROM TIME TO TIME, AND
SUBJECT TO THE DOLLAR LIMIT IMPOSED BY THAT SECTION; and [7]
(8) for all taxable years ending after December 31, 1972,
amounts received by an individual who is totally disabled,
as an annuity, pension or endowment under a private,
municipal. State or federal retirement system, and included
in such individual's federal adjusted gross income, this
subtraction shall not exceed an amount equal to the average