Ch. 110

LAWS OF MARYLAND

(3)  interest derived from a United States obligation;
and

(4)   interest excluded from federal gross income under
§ 103 of the Internal Revenue Code and derived from a bond:

(i) issued by a state or a public corporation,
special district, political subdivision of a state or their
instrumentalities; or

(ii) under § 150 of the Internal Revenue Code,
treated as a bond issued by a state or a public corporation,
special district, or political subdivision of a state or their
instrumentalities.

(C) IN COMPUTING NET EARNINGS, A FINANCIAL INSTITUTION MAY
NOT REPORT A FEDERAL TAXABLE INCOME OF LESS THAN ZERO.

10-206.

(E) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(II)   "LOSS YEAR" MEANS THE TAXABLE YEAR IN
WHICH THERE OCCURS A NET OPERATING LOSS THAT IS CARRIED BACK OR
CARRIED OVER IN WHOLE OR IN PART TO ANOTHER TAXABLE YEAR.

(III)   "NET ADDITION MODIFICATION" MEANS, FOR
ANY TAXABLE YEAR, THE AMOUNT BY WHICH THE SUM OF THE ADDITION
MODIFICATIONS REQUIRED UNDER THIS TITLE EXCEEDS THE SUM OF THE
SUBTRACTION MODIFICATIONS ALLOWED UNDER THIS TITLE.

(IV)   "NET OPERATING LOSS DEDUCTION" MEANS A NET
OPERATING LOSS DEDUCTION ALLOWED FOR FEDERAL INCOME TAX PURPOSES
UNDER § 17 2 OF THE INTERNAL REVENUE CODE.

(2) IF A NET OPERATING LOSS DEDUCTION IS ALLOWED FOR
THE TAXABLE YEAR, THE ADDITION UNDER SUBSECTION (A) OF THIS
SECTION FOR THE TAXABLE YEAR INCLUDES, FOR EACH LOSS YEAR AS TO
WHICH A PORTION OF THE NET OPERATING LOSS DEDUCTION IS
ATTRIBUTABLE, AN AMOUNT EQUAL TO THE LESSER OF:

(I)  THE AMOUNT OF THE NET OPERATING LOSS
DEDUCTION ATTRIBUTABLE TO THAT LOSS YEAR; OR

(II)  THE AMOUNT BY WHICH THE TOTAL NET
OPERATING LOSS IN THE LOSS YEAR IS LESS THAT THE SUM OF:

1. THE NET ADDITION MODIFICATION FOR THAT
LOSS YEAR; AND

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