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ROBERT L. EHRLICH, JR., Governor
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H.B. 638
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(ii) a loss related to or incurred in connection directly or indirectly
with factoring transactions or discounting transactions;
(iii) a royalty, patent, technical, or copyright fee;
(iv) a licensing fee; or
(v) any other similar expense or cost.
(6) "Intangible property" means patents, patent applications, trade
names, trademarks, service marks, copyrights, and similar types of intangible assets.
(7) "Interest expense" means an amount directly or indirectly allowed as
a deduction under § 163 of the Internal Revenue Code for purposes of determining
taxable income under the Internal Revenue Code.
(8) "Related entity" means a person that, under the attribution rules of §
318 of the Internal Revenue Code, is:
(i) a stockholder who is an individual or a member of the
stockholder's family enumerated in § 318 of the Internal Revenue Code, if the
stockholder and the members of the stockholder's family own directly, indirectly,
beneficially, or constructively, in the aggregate, at least 50% of the value of the
taxpayer's outstanding stock;
(ii) a stockholder or a stockholder's partnership, limited liability
company, estate, trust, or corporation, if the stockholder and the stockholder's
partnership, limited liability company, estate, trust, or corporation own directly,
indirectly, beneficially, or constructively, in the aggregate, at least 50% of the value of
the taxpayer's outstanding stock; or
(iii) a corporation or a party related to the corporation in a manner
that would require an attribution of stock from the corporation to the party or from
the party to the corporation under the attribution rules of § 318 of the Internal
Revenue Code, if the taxpayer owns directly, indirectly, beneficially, or constructively,
at least 50% of the value of the corporation's outstanding stock.
(9) "Related member" means a person that, with respect to the taxpayer
during all or any portion of the taxable year, is:
(i) a related entity;
(ii) a component member, as defined in § 1563(b) of the Internal
Revenue Code; or
(iii) a person to or from whom there is attribution of stock
ownership in accordance with § 1563(e) of the Internal Revenue Code.
(b) (1) Except as otherwise provided in this section, in addition to the
modifications under §§ 10-305 and 10-306 of this subtitle, the amounts under
paragraph (2) of this subsection are added to the federal taxable income of a
corporation to determine Maryland modified income.
- 4145 -
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