WILLIAM DONALD SCHAEFER, Governor

Ch. 2

Also in the introductory language of this section, the
reference to "Maryland modified income" is substituted
for the former reference to "net income", for clarity
and consistency.

In items (1) and (2) of this section, the word
"adjusted" is substituted for the former word
"modified", for clarity.

Also in items (1) and (2) of this section, the defined
term "Internal Revenue Code" is substituted for the
former references to the "laws of the United States as
amended from time to time", for clarity. In item (2)
of this section, the specific cross-reference to "§
512" of the Internal Revenue Code is added for
clarity.

In item (1) of this section, the reference to "federal
taxable income" is substituted for the former
references to "taxable income" and "investment company
taxable income", for clarity and brevity.

The first clause of the first sentence of former Art.
81, § 313A(a), which treated a real estate investment
trust as a corporation for tax purposes, is deleted as
unnecessary since these trusts fall within the broadly
defined terms "corporation" and "person" in this
article and the Tax - Property Article. To the extent
that the former clause provided an "exception" for
income taxes, the former clause was misleading, since
a trust's income is defined as provided for
corporations generally in item (1) of this section,
although the specific provisions of the Internal
Revenue Code differ.

Defined terms: "Corporation" § 10-101
"Internal Revenue Code" § 1-101
"Taxable year" § 10-101

10-305. ADDITIONS TO FEDERAL TAXABLE INCOME -- ADDBACKS OF
FEDERAL ADJUSTMENTS.

(A)  IN GENERAL.

TO THE EXTENT EXCLUDED FROM FEDERAL TAXABLE INCOME, THE
AMOUNTS UNDER THIS SECTION ARE ADDED TO THE FEDERAL TAXABLE
INCOME OF A CORPORATION TO DETERMINE MARYLAND MODIFIED INCOME.

(B)  NET CAPITAL LOSS CARRY BACK.

THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES
THE NET CAPITAL LOSS CARRY BACK, AS DEFINED IN § 1212 OF THE
INTERNAL REVENUE CODE.

(C)  STATE INCOME TAX.

- 327 -