2632

LAWS OF MARYLAND

Ch. 298

288.

(d) The following shall not be liable for the tax
imposed by this section:

[(10) To the extent of the amount of wages for
which an employer qualifies for reduction in workmen's
compensation premiums and Unemployment Insurance Fund
contributions under § 266KK(b) of Article 41 (relating to
urban enterprise zones), income derived from the conduct of
a trade or business in an urban enterprise zone.]

291A. CREDIT AGAINST TAX ALLOWED FOR QUALIFIED EMPLOYEES IN
AN ENTERPRISE ZONE.

(A)  IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED:

(1)  "BUSINESS ENTITY" MEANS A PERSON CONDUCTING
OR OPERATING A TRADE OR BUSINESS;

(2)  "ENTERPRISE ZONE" MEANS AN AREA DESIGNATED
UNDER § 266KK-2 OF ARTICLE 41;

(3)  "QUALIFIED EMPLOYEE" MEANS AN INDIVIDUAL:

(I)  EMPLOYED AT LEAST -29- 25 HOURS PER
WEEK BY A BUSINESS ENTITY FOR AT LEAST 6 MONTHS DURING THAT
BUSINESS ENTITY'S TAXABLE YEARS; AND

(II)  WHO SPENDS AT LEAST ONE-HALF OF THE
HOURS FOR WHICH WAGES ARE PAID TO SUCH EMPLOYEE BY THE
BUSINESS ENTITY DURING THAT BUSINESS ENTITY'S TAXABLE YEAR
EITHER IN THE ENTERPRISE ZONE OR ON ACTIVITIES OF THE
BUSINESS ENTITY RESULTING DIRECTLY FROM ITS LOCATION IN THE
ENTERPRISE ZONE.

(4) "QUALIFIED WAGES" MEANS THE WAGES PAID TO A

QUALIFIED EMPLOYEE, NOT EXCEEDING FOR EACH QUALIFIED

EMPLOYEE:

(I) $1,500 FOR PURPOSES OF SUBSECTION
(B)(1)(I) AND (B)(2)(I);

(II) $1,000 FOR PURPOSES OF SUBSECTION
(B)(2)(II); AND

(III) $500 FOR PURPOSES OF SUBSECTION
(B)(1)(II) AND (B)(2)(III).

(B)  ANY BUSINESS ENTITY IN AN ENTERPRISE ZONE SHALL
RECEIVE THE FOLLOWING CREDITS AGAINST THE TAX IMPOSED BY §
288 OF THIS ARTICLE.