WILLIAM DONALD SCHAEFER, Governor Ch. 545

(II) THE AGGREGATE AMOUNT DESIGNATED BY THE
MUTUAL FUND AS STATE TAX EXEMPT INTEREST DIVIDENDS FOR THE
TAXABLE YEAR DID NOT EXCEED THE AGGREGATE STATE TAX EXEMPT
INTEREST RECEIVED BY THE MUTUAL FUND DURING THE TAXABLE YEAR.

(2)  THE SUBTRACTION UNDER SUBSECTION (A) OF THIS
SECTION INCLUDES A DISTRIBUTION OR DIVIDEND BY A MUTUAL FUND OF
STATE TAX EXEMPT INTEREST, PROVIDED THAT AT LEAST 50% OF THE
INTEREST RECEIVED BY THE MUTUAL FUND DURING ITS TAXABLE YEAR IS
FROM UNITED STATES GOVERNMENT OBLIGATIONS.

10-307.

(a) To the extent included in federal taxable income, the

amounts under this section are subtracted from the federal

taxable income of a corporation to determine Maryland modified
income.

(g) 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(m) of this title (Income from
Development Credit Corporation of Maryland);

(3)  § 10-207(r) of this title (Profits on sale or
exchange of State or local bonds);

(4)  § 10-207(t) of this title (Reforestation or
timber stand expenses);

(5) § 10-207(u) of this title (Relocation and
assistance payments);

(6)  § 10-207(w) of this title (State or local income
tax refunds); [or]

(7)  § 10-207(z) of this title (Wage expenses for
targeted jobs); OR

(8) § 10-207(G-1) OF THIS TITLE (STATE TAX EXEMPT
INTEREST FROM MUTUAL FUNDS).

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989 and shall be applicable to all taxable
years beginning after December 31, 1988.

Approved May 25, 1989.

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