3338

LAWS OF MARYLAND

Ch. 712

(b) Any business entity which is   located   in an enterprise

zone and satisfies the requirements of Section 266KK-4 of Article

41 shall receive the following credits against the tax imposed by
Section 288 of this article.

(1)  For the taxable year [that commences immediately
following the     taxable year] in which the business entity
satisfies the     requirements of Section 266KK-4 of Article 41, a
credit shall be   granted of:

(i) Up to $1,500 of the wages paid in the
taxable year for which the credit is claimed to each qualified
employee who:

1.   Is an economically disadvantaged
individual; and

2.   Is not hired to replace an individual
who was employed by the business entity in that or any previous
taxable year; and

(ii) Up to $500 of the wages paid in the
taxable year for which the credit is claimed to each qualified
employee who:

1.   Is not an economically disadvantaged
individual; and

2.   Is not hired to replace an individual
who was employed by the business entity in that or any previous
taxable year.

(2)  For each taxable year after the taxable year
described in paragraph (1) of this subsection, while the area is
designated an enterprise zone, a credit shall be granted:

(i) Up to $1,500 of the wages paid in the
taxable year for which the credit is claimed to each qualified
employee who:

1.   Is an economically disadvantaged
individual, and became a qualified employee during the taxable
year to which the credit applies;

2.   Is not hired to replace an individual
who was employed by the business entity in that or any preceding
taxable year; however, if the qualified employee was hired to
replace another qualified employee for whom the business entity
received a credit under paragraphs (l)(i) or (2)(ii) in the
immediately preceding taxable year, then the business entity may
treat the new qualified employee as the replacement for the other
qualified employee to determine any credit that may be available
to the business entity under paragraphs (2)(ii) or (2)(iii)l.;
and