WILLIAM DONALD SCHAEFER, Governor                       Ch. 2

through (23), § 281A, and, as they related to Maryland
adjusted gross income, §§ 280E, 280D(b) and the
introductory language of (a), and the second clause of
§ 12G-12(a).

The introductory language of subsection (a) of this
section, "[t]o the extent included in federal adjusted
gross income", is added as a general limitation.
Accordingly, former, similar references that applied
to specific subtractions in subsections (f), (i), (j),
(n), (p), (g), and (t) of this section are deleted as
unnecessary.

In subsection (a) of this section, the phrase "to
determine Maryland adjusted gross income" is added to
state expressly that which only was implied in the
former law -- i.e., the purpose of the subtraction.

In subsection (b) of this section, the reference to
"reasonable and necessary adoption fees, court costs,
attorney fees, and other expenses" and the description
of a "child with a special need" are substituted for
the former, obsolete reference to "§ 222 of the
Internal Revenue Code", which the federal Tax Reform
Act of 1986 repealed.

In subsection (d)(2) and (3) of this section, the word
"taxpayer" is used, although it generally is avoided
throughout this article. In this instance, however,
the subtraction allowed individuals under subsection
(d) of this section also is allowed, by
cross-reference, to corporations, under § 10-307(g)(l)
of this title. Therefore, the Tax - General Article
Review Committee felt that use of the term "taxpayer"
would cause less confusion.

In subsection (e) of this section, the reference to
the dollar limit "under § 21(c) of the Internal
Revenue Code and determined without reference to the
percentage limitation of § 21(a)(2) of the Internal
Revenue Code" is substituted for the former,
inaccurate reference to limitations allowed "under §
44A of the Internal Revenue Code ... subject to the
dollar limit imposed by that section", for clarity.

Also in subsection (e) of this section, the former
words "determined and calculated as employment-related
expenses" are deleted as surplusage.

In subsection (1) of this section, the former
reference to specific transactions that give rise to
income is deleted as unnecessary in light of the
subtraction of any income from any transaction
involving securities, shares of capital stock, or
evidence of indebtedness of the Development Credit
Corporation of Maryland.

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