Ch. 2

LAWS OF MARYLAND

(2) SUBJECT TO THE ADDITIONS REQUIRED UNDER
SUBSECTION (B) OF THIS SECTION, IN THE MANNER THAT A CORPORATION
COMPUTES, FOR PURPOSES OF THE INCOME TAX, THE MARYLAND MODIFIED
INCOME.

(B) ADDITION MODIFICATIONS.

A FINANCIAL INSTITUTION SHALL ADD TO ITS NET EARNINGS
COMPUTED UNDER SUBSECTION (A) OF THIS SECTION THE AMOUNTS THAT,
EVEN IF OTHERWISE ALLOWED TO BE SUBTRACTED UNDER § 10-307(B) AND
(G)(3) OF THIS ARTICLE, EQUAL:

(1)  PROFIT REALIZED FROM THE SALE OR EXCHANGE OF
BONDS ISSUED BY THIS STATE OR A POLITICAL SUBDIVISION OF THIS
STATE;

(2)  DIVIDENDS RECEIVED FROM FOREIGN CORPORATIONS AND
INCLUDED IN FEDERAL GROSS INCOME UNDER § 78 OF THE INTERNAL
REVENUE CODE;

(3)  INTEREST DERIVED FROM A UNITED STATES OBLIGATION;
AND

(4)  INTEREST EXCLUDED FROM FEDERAL GROSS INCOME UNDER
§ 103 OF THE INTERNAL REVENUE CODE AND DERIVED FROM A BOND:

(I)  ISSUED BY A STATE OR A PUBLIC CORPORATION,
SPECIAL DISTRICT, POLITICAL SUBDIVISION OF A STATE OR THEIR
INSTRUMENTALITIES; OR

(II)  UNDER § 150 OF THE INTERNAL REVENUE CODE,
TREATED AS A BOND ISSUED BY A STATE OR A PUBLIC CORPORATION,
SPECIAL DISTRICT, OR POLITICAL SUBDIVISION OF A STATE OR THEIR
INSTRUMENTALITIES.

REVISOR'S NOTE: This section is . new language derived
without substantive change from former Art. 81, §
128A(a)(6) and (b)(2).

This section is revised to incorporate the substance
of former Art. 81, § 128(b)(5)(i) and the second and
third sentences of (c). As to the transfer of former
Art. 81, § 128(a) through (h-1) to the Session Laws,
see the General Revisor's Note to this subtitle.

In subsection (a)(1) of this section, the reference to
the "accounting period used as its fiscal year" is
substituted for the former reference to an "annual
accounting period (whether it is a calendar year or a
fiscal year as defined in § 279(h) of this article)",
for clarity.

In subsection (a)(2) of this section, the reference to
a computation made "in the manner that a corporation
computes, for purposes of the income tax, the Maryland

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