HARRY HUGHES, Governor

Article 81 - Revenue and Taxes

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

Annotated Code of Maryland

(1980 Replacement Volume and 1984 Supplement)

BY repealing and reenacting, without amendments,

Article 81 - Revenue and Taxes

Section 290(a) and (b)

Annotated Code of Maryland

(1980 Replacement Volume and 1984 Supplement)

BY adding to

Article 81 - Revenue and Taxes

Section 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.

290.

(a) Whenever a resident individual of this State has become
liable for income tax to another state upon such part of his net
income for the taxable year as is properly subject to taxation in