Ch. 2

LAWS OF MARYLAND

IF 50% OR MORE OF THE NET TAXABLE INCOME OF AN AFFILIATED
DOMESTIC INTERNATIONAL SALES CORPORATION, AS DEFINED UNDER §
992(A) OF THE INTERNAL REVENUE CODE, IS SUBJECT TO TAXATION BY
THE STATE, THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES THE PERCENTAGE OF THE DIVIDENDS RECEIVED FROM THE
CORPORATION EQUAL TO THE PERCENTAGE THAT WOULD BE EXCLUDED IF THE
CORPORATION DID NOT QUALIFY UNDER § 992(A) OF THE INTERNAL
REVENUE CODE.

(D)  DIVIDENDS FROM RELATED FOREIGN CORPORATIONS.

THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES DIVIDENDS RECEIVED FROM A CORPORATION IF:

(1)  THE RECEIVING CORPORATION OWNS, DIRECTLY OR
INDIRECTLY, 50% OR MORE OF THE PAYING CORPORATION'S OUTSTANDING
SHARES OF CAPITAL STOCK; AND

(2)  THE PAYING CORPORATION IS ORGANIZED UNDER THE
LAWS OF A FOREIGN GOVERNMENT.

(E)  GROSS RECEIPTS SUBJECT TO FRANCHISE TAX.

THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES GROSS RECEIPTS, LESS RELATED EXPENSES, THAT ARE SUBJECT
TO THE PUBLIC SERVICE COMPANY FRANCHISE TAX.

(F)  INTEREST FROM UNITED STATES OBLIGATIONS.

THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES INTEREST ATTRIBUTABLE TO AN OBLIGATION OF THE UNITED
STATES OR AN INSTRUMENTALITY OF THE UNITED STATES.

(G)  MISCELLANEOUS SUBTRACTIONS.

THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION
INCLUDES THE AMOUNTS ALLOWED TO BE SUBTRACTED FOR AN INDIVIDUAL
UNDER:

(1)  § 10-207(D) OF THIS TITLE [CONSERVATION TILLAGE
EQUIPMENT EXPENSES];

(2)  § 10-207(L) OF THIS TITLE [INCOME FROM
DEVELOPMENT CREDIT CORPORATION OF MARYLAND];

(3)  § 10-207(P) OF THIS TITLE [PROFITS ON SALE OR
EXCHANGE OF STATE OR LOCAL BONDS];

(4)  § 10-207(R) OF THIS TITLE [REFORESTATION OR
TIMBER STAND EXPENSES];

(5)  § 10-207(S) OF THIS TITLE [RELOCATION AND
ASSISTANCE PAYMENTS];

(6)  § 10-207(T) OF THIS TITLE [STATE OR LOCAL INCOME
TAX REFUNDS]; OR

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