HARRY HUGHES, Governor

1217

Annotated Code of Maryland

(1980 Replacement Volume and 1985 Supplement)

BY adding to

Article 81 - Revenue and Taxes

Section 280(c)(19) and 280E

Annotated Code of Maryland

(1980 Replacement Volume and 1985 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

291B.

(A) IN THIS SECTION:

(1) "CONSERVATION TILLAGE EQUIPMENT" MEANS A PLANTER
OR DRILL THAT:

(I) IS COMMONLY KNOWN AS A "NO TILL" PLANTER OR
DRILL; AND

(II) IS DESIGNED TO MINIMIZE THE DISTURBANCE OF
THE SOIL IN PLANTING CROPS;

(2) "CONSERVATION TILLAGE EQUIPMENT" INCLUDES A

PLANTER OR DRILL THAT ATTACHES TO OR IS PULLED BY EQUIPMENT
ALREADY OWNED BY THE TAXPAYER; AND

(3) "CONSERVATION TILLAGE EQUIPMENT" DOES NOT INCLUDE
EQUIPMENT:

(I) WITH A USEFUL LIFE LESS THEN 4 YEARS; OR

(II) OWNED BY THE TAXPAYER FOR LESS THAN 3
YEARS.

(B) A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED
UNDER § 288 OF THIS ARTICLE FOR EXPENSES INCURRED FOR THE
PURCHASE AND INSTALLATION OF CONSERVATION TILLAGE EQUIPMENT USED
IN AGRICULTURAL PRODUCTION BY THE TAXPAYER.

(C) THE AMOUNT OF THE CREDIT UNDER THIS SECTION IS EQUAL TO

5% OF THE TOTAL COST OF PURCHASING AND INSTALLING THE

CONSERVATION TILLAGE EQUIPMENT.

(D) ANY AMOUNT OF THE CREDIT THAT EXCEEDS THE TAXPAYER'S
INCOME TAX LIABILITY FOR THE TAXABLE YEAR MAY BE CARRIED OVER TO
SUCCEEDING TAXABLE YEARS UNTIL THE FULL AMOUNT OF THE CREDIT IS
USED.