Ch. 3

1995 LAWS OF MARYLAND

2.       became a qualified employee during the taxable year to
which the credit applies; and

3.       is not hired to replace an individual whom the business entity
employed in that or any of the 3 preceding taxable years;

(ii) up to $1,000 of the wages paid to each qualified employee who is
an economically disadvantaged individual, if the business entity received a credit under
subsection (c)(1) of this section for the qualified employee in the immediately preceding
taxable year; and

(iii) up to $500 of the wages paid to each qualified employee who is not
hired to replace an individual whom the business entity employed in that or any of the 3
preceding taxable years if the qualified employee:

1.    is an economically disadvantaged individual for whom the
business entity received a credit under subsection (c)(1) of this section or item (i) of this
paragraph and a credit under item (ii) of this paragraph in the 2 immediately preceding
taxable years; or

2.       is not an economically disadvantaged individual but became a
qualified employee during the taxable year to which the credit applies.

(2) A business entity that hires a qualified employee to replace another
qualified employee for whom the business entity received a credit under subsection (c)(1)
of this section and paragraph (1)(ii) of this subsection in the immediately preceding
taxable year may treat the new qualified employee as the replacement for the other
qualified employee to determine any credit that may be available to the business entity
under paragraph (1)(ii) or (iii) of this subsection.

(e)     If the credit allowed under this section in any taxable year exceeds the State
income tax for that taxable year, a business entity may apply the excess as a credit against
the State income tax for succeeding taxable years until the earlier of:

(1)     the full amount of the excess is used; or

(2)     the expiration of the 5th taxable year from the date on which the
business entity hired the qualified employee to whom the credit first applies.

(f)      If a credit is claimed under this section, the claimant must make the addition
required in § 10-205, § 10-206, or § 10-306 of this title.

DRAFTER'S NOTE:

Error: Erroneous codification of provisions subject to abrogation in § 10-702
of the Tax - General Article.

Occurred: As a result of Ch. 2, Acts of 1988, which failed to take into
account an uncodified termination clause applicable to amendments made by
Ch. 280, Acts of 1986. Correction by the Michie Company in the 1994
Cumulative Supplement of the Tax - General Article is validated by this Act.

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