WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

(D) S CORPORATION CREDIT FOR TAX PAID TO ANOTHER STATE.

THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES
THE AMOUNT OF A CREDIT THAT IS CLAIMED UNDER § 10-703 OF THIS
TITLE AND IS BASED ON A TAX PAID BY AN S CORPORATION TO A STATE
THAT DOES NOT RECOGNIZE THE FEDERAL TAX TREATMENT OF AN S
CORPORATION.

REVISOR'S NOTE: Subsection (a) of this section is new
language added to clarify that an amount under this
section is to be added whether or not excluded from
computation for federal income tax purposes. In light
of this addition, in subsection (b) of this section,
the former requirement that "an appropriate
modification must be made ... increasing the taxable
income base to the extent of the credit claimed" is
deleted as unnecessary.

Subsections (b) through (d) of this section are new
language derived without substantive change from
former Art. 81, §§ 280(b)(8) and 291A(d) and, as it
related to Maryland adjusted gross income, §
280D(c)(l)(ii), (3), and (4).

In subsection (b) of this section, the phrase "for
wages paid to an employee in an enterprise zone" is
added for clarity.

In subsection (c) of this section, the reference to
"decertification" of commercial forest land "under §
5-219 of the Natural Resources Article" is substituted
for the former references to "reforestation or timber
stand improvement activities" that are not continued,
and to forest land that "does not remain as commercial
forest land for 15 years after final certification",
for clarity and conformity to NR § 5-219(b).

As to the transfer of former Art. 81, §§ 280C and
280D(a), (c)(l)(i) and (2), and (d) to the Natural
Resources Article, see General Revisor's Note to
Subtitle 3 of this title.

Defined terms: "Individual" § 10-101
"State" § 1-101 "Taxable year" § 10-101
"Wages" § 10-101

10-207. SUBTRACTIONS FROM FEDERAL ADJUSTED GROSS INCOME -- IN
GENERAL.

(A) IN GENERAL.

TO THE EXTENT INCLUDED IN FEDERAL ADJUSTED GROSS INCOME, THE
AMOUNTS UNDER THIS SECTION ARE SUBTRACTED FROM THE FEDERAL
ADJUSTED GROSS INCOME OF AN INDIVIDUAL TO DETERMINE MARYLAND
ADJUSTED GROSS INCOME.

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