PARRIS N. GLENDENING, Governor                             H.B. 1154

OTHERWISE IS A QUALIFYING CLEAN FUEL VEHICLE PROPERTY UNDER § 179A OF
THE INTERNAL REVENUE CODE, SHALL BE TREATED AS BEING ELIGIBLE FOR A
DEDUCTION OF $5,000 UNDER PARAGRAPH (B)(1) OF § 179A OF THE INTERNAL
REVENUE CODE.

(B) THE CREDIT ALLOWED UNDER THIS SECTION MAY NOT BE CLAIMED BY A
TAXPAYER THAT IS SUBJECT TO THE PUBLIC SERVICE COMPANY FRANCHISE TAX.

(1) BY AN ALTERNATIVE FUEL PROVIDER; OR

(2) FOR A VEHICLE, UNLESS THE CLAIMANT HAS ALREADY MET OR
EXCEEDED ANY STATE OR FEDERAL LAWS OR REGULATIONS GOVERNING CLEAN-FUEL
VEHICLE OR ELECTRIC VEHICLE PURCHASES OR CONVERSIONS APPLICABLE DURING
THE TAXABLE YEAR.

(C) A CREDIT IS NOT ALLOWED FOR:

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

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

(3) 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, § 10-702.1, § 10-703, [or] §
10-704.1, OR § 10 7012 § 10-704.2, OR § 10-704.3 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 7. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Tax - General

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