1544

LAWS OF MARYLAND

Ch. 53 4

of this subparagraph may allow the subtraction to the
nearest $100. The allowed subtraction shall be reduced by
the amount of disability benefits received under the Social
Security Act, the Railroad Retirement Act, or both, as the
case may be.

280A.

(c) There shall be subtracted from taxable income of
the 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) 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 other state; (3) interest income on
obligations of the United States and its instrumentalities;
(4) any amounts included therein by operation of the
provisions of § 78 of the Internal Revenue Code of 1954; (5)
TO THE EXTENT INCLUDED, ANY PROFIT REALIZED FROM THE SALE OR
EXCHANGE OF BONDS ISSUED BY THIS STATE OR ITS POLITICAL
SUBDIVISIONS; and [(5)] (6) to the extent that the dividends
are included in taxable income, the percentage of dividends
received from an affiliated domestic international sales
corporation (as defined by Internal Revenue Code of 1954
Section 992 (a)), which is equivalent to the percentage that
would be excluded if the domestic international sales
corporation was not qualified under Section 992 (a).
However, this exclusion shall be available only if at least
50 percent of the net taxable income of the domestic
international sales corporation is subject to Maryland
taxation.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979 and shall apply to all
taxable years beginning after December 31, 1978.

Approved May 29, 1979.

CHAPTER 535

(House Bill 304)

AN ACT concerning

Admissions and Amusement Tax

FOR the purpose of specifying that the admissions and
amusement tax provisions apply to the gross receipts
derived from certain admissions—charges for use of
sporting or recreational facilities or equipment and of
games of entertainment.