WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

IN COMPUTING TAXABLE NET EARNINGS, A FINANCIAL INSTITUTION
SHALL INCLUDE ONLY THAT PART OF INTEREST DERIVED FROM THE TRADE
OR BUSINESS, IN THIS STATE, OF THE SUBSIDIARIES OF THE FINANCIAL
INSTITUTION, IF THE FINANCIAL INSTITUTION IS A HOLDING COMPANY
BECAUSE ITS ONLY ACTIVITIES ARE TO:

(1)  MAINTAIN AND MANAGE INTANGIBLE INVESTMENTS; AND

(2)  COLLECT AND DISTRIBUTE INCOME FROM INTANGIBLE
INVESTMENTS.

REVISOR'S NOTE: This section is new language derived
without substantive change from former Art. 81, §
128A(g), as it authorized allocation, and (h).

Subsection (a) of this section is revised to
incorporate the substance of former Art. 81, §
128(c)(2). 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.

Subsection (a) of this section also is revised to
allow a financial institution, rather than the
Director, to allocate net earnings. Therefore, the
reference to "the manner that the Department requires"
is added as a general reference to the duties of the
Department under § 8-211(2) of this subtitle.

In the introductory language of subsection (b) of this
section, the defined term "financial institution" is
substituted for the former reference to "a corporation
subject to tax under this section", for clarity.

Defined terms: "Company" § 8-101
"Comptroller" § 1-101 "Department" § 1-101
"Financial institution" § 8-101
"Net earnings" § 8-201

8-207. TAX CREDIT -- FOR ESTIMATED TAXES.

A FINANCIAL INSTITUTION MAY CLAIM A CREDIT AGAINST THE
FINANCIAL INSTITUTION FRANCHISE TAX EQUAL TO THE ESTIMATED TAX
PAID UNDER § 8-210(B) OF THIS SUBTITLE.

REVISOR'S NOTE: This section is new language derived
without substantive change from the second sentence of
former Art. 81, § 128A(e)(2), as that sentence related
to a tax credit for estimated taxes paid.

This section is revised to incorporate the substance
of former Art. 81, § 128(c)(3)(ii). 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.

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