870                                               LAWS OF MARYLAND                                         Ch. 255

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 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 states; (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) dividends received
from a corporation in which the taxpayer owns, directly or
indirectly, 50 percent or more of the corporation's outstanding
shares of capital stock, and which is organized under the laws of
a foreign country, and (6) to the extent included, any profit
realized from the sale or exchange of bonds issued by this State
or its political subdivisions; (7) 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 §
992(a)), which is equivalent to the percentage that would be
excluded if the domestic international sales corporation was not
qualified under § 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; [and] (8) expenses incurred for reforestation
or timber stand improvement activity as determined under the
provisions of §§ 280C and 280D of this subtitle[. And]; AND (9)
the dollar amount by which the employer business deduction for
employee wages and salaries is disallowed under § 280C(b) of the
Internal Revenue Code (relating to targeted jobs credit).

280D.

(a)  A taxpayer is allowed a modification subtraction equal
to double the amount incurred in reforestation or timber stand
improvement activity on 10 to 100 acres of commercial forest
land, except for federal funds, if the taxpayer:

(1)  Owns or leases from 10 to 500 acres of commercial
forest land; or

(2)  Owns or leases from 10 to 500 acres of land that
is being restored and that is capable of growing a commercial
forest.

(b)  A taxpayer may claim one-half of the amount determined
in subsection (a) above in the year of initial certification and
one-half in the year of final certification.

(c)  (1) If reforestation or timber stand improvement
activities do not meet the requirements for final certification,
the taxpayer shall: