2676

LAWS OF MARYLAND

Ch. 534

Article 81 - Revenue and Taxes

Section 288(d)(9) 280(b)(6) and (7) and 312(g) and (h)(4)

Annotated Code of Maryland

(1980 Replacement Volume and 1984 Supplement)

BY adding to

Article 81 - Revenue and Taxes

Section 290(c) 280(b)(8), 290(c), and 312(a-2)

Annotated Code of Maryland

(1980 Replacement Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 81 - Revenue and Taxes

280.

(b) There shall be added to federal adjusted gross income:

(6) The ordinary income portion of a lump-sum
distribution allowable as a deduction from federal adjusted gross
income under § 402(e)(3) of the Internal Revenue Code, and to the
extent treated as ordinary income, 40 percent of the capital
gain portion of the distribution as provided in § 402(a)(2) of
the Internal Revenue Code, and giving effect to § 402(e)(1)(D) of
the Internal Revenue Code; [and]

(7) The deduction for two-earner married couples as
claimed and allowed under § 62 of the Internal Revenue Code, as
amended from time to time[.]; AND

(8) THE AMOUNT OF THE CREDIT CLAIMED UNDER SECTION
290(C) OF THIS SUBTITLE, IF THE CREDIT IS BASED UPON TAXES PAID
BY AN "S" CORPORATION TO A STATE WHICH DOES NOT RECOGNIZE FEDERAL
"S" CORPORATION TAX TREATMENT.

288.

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

(9)(I) [For] EXCEPT AS PROVIDED IN ITEM (II) OF THIS
PARAGRAPH, FOR taxable years ending after December 31, 1975,
small business corporations, as defined by § [1371] 1361 of the
Internal Revenue Code, as amended from time to time, which have
elected to be taxed in accordance with the provisions of
Subchapter "S" of the Internal Revenue Code.

(II) A SMALL BUSINESS CORPORATIONS THAT HAS
ELECTED TO BE TAXED IN ACCORDANCE WITH THE PROVISIONS OF
SUBCHAPTER "S" OF THE INTERNAL REVENUE CODE IS LIABLE FOR THE TAX