PARRIS N. GLENDENING, Governor                                 Ch. 124

(C)     A CREDIT IS NOT ALLOWED FOR:

(1)      A VEHICLE THAT IS NOT TITLED AND REGISTERED IN THE STATE;

(2)      PROPERTY INSTALLED ON A VEHICLE THAT IS NOT TITLED AND
REGISTERED IN THE STATE; OR

(3)      IN THE CASE OF REFUELING PROPERTY, PROPERTY THAT IS NOT
LOCATED IN THE STATE A VEHICLE WITH A GROSS VEHICLE WEIGHT OF MORE
THAN 26,000 POUNDS.

(D)     (1) THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION MAY
NOT EXCEED THE STATE INCOME TAX FOR THAT TAXABLE YEAR, CALCULATED
BEFORE APPLICATION OF THE CREDITS UNDER THIS SECTION AND § 10-701 OF THIS
SUBTITLE, BUT AFTER APPLICATION OF THE OTHER CREDITS ALLOWABLE UNDER
THIS SUBTITLE.

(2) THE UNUSED AMOUNT OF THE CREDIT FOR ANY TAXABLE YEAR
MAY NOT BE CARRIED OVER TO ANY OTHER TAXABLE YEAR.

(E)     EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, FOR PURPOSES OF
DETERMINING MARYLAND TAXABLE INCOME, THE BASIS OF PROPERTY WITH
RESPECT TO WHICH THE CREDIT UNDER THIS SECTION IS ALLOWED SHALL BE ITS
BASIS FOR FEDERAL INCOME TAX PURPOSES.

10-706.

(b) (1) A credit under § 10-701.1, § 10-702, § 10-703, [or § 10-704.1] §
10-704.1, OR § 10-704.2 of this subtitle is allowed against only the State income tax.

(2) The county income tax is based on the amount of State income tax
before the State income tax is reduced by the credit.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1995 and shall be applicable to all taxable years beginning after December 31, 1994
but before January 1, 1998; provided, however, that the credit under § 10-704.2 of the Tax
- General Article shall be allowed only with respect to property placed in service on or
after July 1, 1995. It shall remain effective for a period of 3 years and, at the end of July
1, 1998, with no further action required by the General Assembly, this Act shall be
abrogated and of no further force and effect.

Approved May 9, 1995.

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