WILLIAM DONALD SCHAEFER, Governor Ch. 780

Article - Tax - General

10-207.

(a) To the extent included in federal adjusted gross
income, the amounts under this section are subtracted from the
federal adjusted gross income of an individual to determine
Maryland adjusted gross income.

(O-1) (1) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS
SECTION INCLUDES THE FIRST $2,500 OF MILITARY RETIREMENT INCOME
RECEIVED BY AN INDIVIDUAL DURING THE TAXABLE YEAR, IF THE
INDIVIDUAL:

(1) (I) IS AT LEAST 55 YEARS OLD ON THE LAST DAY OF
THE TAXABLE YEAR; AND

(2) (II) WAS AN ENLISTED MEMBER OF THE MILITARY AT
THE TIME OF RETIREMENT; AND .

(3) HAS MILITARY RETIREMENT INCOME FOR THE TAXABLE
YEAR THAT DOES NOT EXCEED $17,500.

(2) THE AMOUNT OF THE SUBTRACTION UNDER PARAGRAPH (1)
OF THIS SUBSECTION:

(I)  IS REDUCED BY 50% OF THE AMOUNT BY WHICH
FEDERAL ADJUSTED GROSS INCOME EXCEEDS $17,500; AND

(II)  IS REDUCED TO ZERO IF FEDERAL ADJUSTED
GROSS INCOME EXCEEDS $22,500.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989 and shall be applicable for all taxable
years beginning after December 31, 1988 the Laws of Maryland read
as follows:

Article - Tax - General

10-207.

(a) To the extent included in federal adjusted gross
income, the amounts under this section are subtracted from the
federal adjusted gross income of a resident to determine Maryland
adjusted gross income.

(Q) (1) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS
SECTION INCLUDES THE FIRST $2,500 OF MILITARY RETIREMENT INCOME
RECEIVED BY AN INDIVIDUAL DURING THE TAXABLE YEAR, IF THE
INDIVIDUAL:

- 4251 -