WILLIAM DONALD SCHAEFER, Governor                        H.B. 1258

Section 7-236 9-223

Annotated Code of Maryland

(1986 Volume and 1992 Supplement)

BY repealing

Article - Tax - Property

Section 9-210

Annotated Code of Maryland

(1986 Volume and 1992 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - Property

7-236 9-223.

(A) (1) IN THIS SECTION, THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "ELIGIBLE EQUIPMENT" MEANS EQUIPMENT OR MACHINERY USED
PRIMARILY IN RESEARCH AND DEVELOPMENT THAT:

(I) IS PURCHASED AND PLACED IN SERVICE AFTER THE
EFFECTIVE DATE OF THE LOCAL ORDINANCE AUTHORIZING THE CREDIT
PERMITTED UNDER SUBSECTION (B) OF THIS SECTION; AND

(II) IS NOT USED FOR ADMINISTRATIVE OR OTHER PURPOSES
SECONDARY TO ACTUAL RESEARCH AND DEVELOPMENT ACTIVITIES UNDER THIS
SECTION.

(3) "QUALIFYING COMPANY" MEANS A COMPANY:

(I) AT EMPLOYS FEWER THAN 250 EMPLOYEES OR HAS LESS
THAN $30 MILLION IN ANNUAL GROSS REVENUES; OR

(II) WHOSE ELIGIBLE EQUIPMENT IS PLACED INTO SERVICE AS
PART OF AN EXPANSION WITHIN OR A RELOCATION INTO MARYLAND WHICH
RESULTS IN NEW JOB CREATION, TAKING PLACE AFTER THE EFFECTIVE DATE OF
THE LOCAL ORDINANCE AUTHORIZING THE TAX CREDIT.

(4) (I) , "RESEARCH AND DEVELOPMENT" MEANS:

(I) 1. (I) BASIC AND APPLIED RESEARCH IN THE SCIENCES
AND ENGINEERING; AND

(II) 2. (II) THE            DESIGN,            DEVELOPMENT,            AND

GOVERNMENTALLY REQUIRED PRE-MARKET TESTING OF PROTOTYPES, PRODUCTS,
AND PROCESSES.

(2) (II) (2) "RESEARCH AND DEVELOPMENT" DOES NOT INCLUDE:

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