Ch. 2

LAWS OF MARYLAND

In subsection (c)(l)(i) of this section, the reference
to "allowable" tax is substituted for the former
reference to "income tax ... upon such part of his net
income ... as is properly subject to taxation in such
state", for brevity.

In subsection (c)(2) of this section, the former
reference that "the State shall deem" is deleted as
surplusage.

In subsection (d)(1) of this section, the defined term
"Maryland taxable income" is substituted for the
former reference to "net income subject to taxation
under this subtitle", for clarity and brevity.

The second sentence of former Art. 81, § 291(a), which
prohibited a credit for income that is exempt under
another state's law, is deleted as a non sequitur,
since if the income is exempt, there is no tax for the
credit to be applied against. Similarly, in
subsection (b)(3)(ii) of this section, the former
requirement that the laws of another state "impose a
tax upon the income of its residents subject to
taxation in this State" is deleted.

Defined terms: "Individual" § 10-101
"Maryland taxable income" § 10-101
"Nonresident" § 10-101 "Resident" § 10-101
"S corporation" § 10-101 "State" § 1-101
"State income tax" § 10-101
"Taxable year" § 10-101

10-704. FOR EARNED INCOME.

(A)  CREDIT ALLOWED.

AN INDIVIDUAL MAY CLAIM A CREDIT AGAINST THE INCOME TAX FOR
A TAXABLE YEAR IN THE AMOUNT DETERMINED UNDER SUBSECTION (B) OF
THIS SECTION FOR EARNED INCOME.

(B)  AMOUNT OF CREDIT.

(1)  EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, THE CREDIT ALLOWED UNDER SUBSECTION (A) OF THIS
SECTION IS THE LESSER OF:

(I)  50% OF THE EARNED INCOME CREDIT ALLOWABLE
FOR THE TAXABLE YEAR UNDER § 32 OF THE INTERNAL REVENUE CODE; OR

(II)  THE STATE INCOME TAX FOR THE TAXABLE YEAR.

(2)  AN INDIVIDUAL WHO FILES AN INCOME TAX RETURN FOR
A PERIOD OF LESS THAN 1 YEAR IS ALLOWED FROM THE AMOUNT UNDER
PARAGRAPH (1) OF THIS SUBSECTION, A FRACTION:

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