HARRY HUGHES, Governor

2481

subdivision or authority thereof (other than this State and its
political subdivisions and authorities); and (5) interest or
dividends on obligations of any authority, commission,
instrumentality, territory or possession of the United States or
of any foreign government, which by the laws or treaties of the
United States are exempt from federal income tax but not from
state income taxes.

(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; (8) expenses incurred for reforestation or
timber stand improvement activity as determined under the
provisions of §§ 280C and 280D of this subtitle; 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).

(D) (1) ANY NONRESIDENT CORPORATION WHICH IS INCORPORATED
IN OR HAS CENTRAL OFFICES LOCATED IN A STATE OTHER THAN THIS
STATE SHALL PAY TO THE COMPTROLLER ALL CORPORATE TAXES TO THE
SAME EXTENT AND IN THE SAME AMOUNT, ON THE SAME SCHEDULE, AND
UNDER THE SAME CONDITIONS THAT A STATE CORPORATION IS REQUIRED TO
PAY IN THE STATE OF THE NONRESIDENT CORPORATION IF THE
CORPORATION DOES BUSINESS AS A LICENSED:

(I) (1) PLUMBER OR GAS FITTER;
(II) (2) CONSTRUCTION CONTRACTOR;
(III) (3) HOME IMPROVEMENT CONTRACTOR;
(IV) (4) PLUMBER; OR