WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

(II) INCLUDES A PLANTER OR DRILL THAT ATTACHES
TO OR IS PULLED BY EQUIPMENT.

(2)  THE SUBTRACTION UNDER SUBSECTION (A) OF THIS
SECTION INCLUDES 100% OF THE EXPENSES THAT A TAXPAYER INCURS TO
BUY AND INSTALL CONSERVATION TILLAGE EQUIPMENT IF:

(I)  THE EQUIPMENT HAS A USEFUL LIFE OF AT LEAST
4 YEARS; AND

(II)  THE TAXPAYER:

1.  BOUGHT THE EQUIPMENT AFTER DECEMBER
31, 1985;

2.  OWNS THE EQUIPMENT FOR AT LEAST 3
YEARS AFTER THE TAXABLE YEAR IN WHICH THE SUBTRACTION IS MADE;
AND

3.  USES THE EQUIPMENT IN AGRICULTURAL
PRODUCTION.

(3)  TO QUALIFY FOR THE SUBTRACTION UNDER PARAGRAPH
(2) OF THIS SUBSECTION, A TAXPAYER SHALL FILE A STATEMENT FROM
THE DEPARTMENT OF AGRICULTURE CERTIFYING COMPLIANCE WITH THE
REQUIREMENTS OF THIS SECTION.

(4)  IF THE SUBTRACTION ALLOWED UNDER PARAGRAPH (2) OF
THIS SUBSECTION EXCEEDS THE MARYLAND TAXABLE INCOME AND IS NOT
USED FOR THE TAXABLE YEAR, THE EXCESS MAY BE CARRIED OVER TO
SUCCEEDING TAXABLE YEARS, NOT TO EXCEED 5, UNTIL THE FULL AMOUNT
OF THE SUBTRACTION IS USED.

(E)  DEPENDENT CARE AND HOUSEHOLD EXPENSES.

THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES EXPENSES FOR HOUSEHOLD AND DEPENDENT CARE SERVICES NOT
EXCEEDING THE DOLLAR LIMIT ALLOWED UNDER § 21(C) OF THE INTERNAL
REVENUE CODE AND DETERMINED WITHOUT REFERENCE TO THE PERCENTAGE
LIMITATION IN § 21(A)(2) OF THE INTERNAL REVENUE CODE.

(F)  DISTRIBUTIONS OF ACCUMULATED INCOME.

THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES A DISTRIBUTION, TO A BENEFICIARY, OF ACCUMULATED INCOME
ON WHICH A FIDUCIARY HAS PAID THE INCOME TAX.

(G)  DIVIDENDS AND INTEREST FROM UNITED STATES OBLIGATIONS.

THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES INTEREST OR DIVIDENDS ATTRIBUTABLE TO AN OBLIGATION OF
THE UNITED STATES OR AN AUTHORITY, COMMISSION, INSTRUMENTALITY,
POSSESSION, OR TERRITORY OF THE UNITED STATES.

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