Ch. 84                                     1996 LAWS OF MARYLAND

(6) (I) IN ORDER TO RECEIVE CERTIFICATION THAT A BUSINESS
ENTITY IS ELIGIBLE TO RECEIVE THE TAX CREDIT PROVIDED UNDER THIS
SUBTITLE, A BUSINESS ENTITY SHALL SUBMIT THE FOLLOWING TO THE
DEPARTMENT IN ACCORDANCE WITH REGULATIONS ADOPTED BY THE
DEPARTMENT:

1. THE EFFECTIVE DATE OF THE START-UP OR EXPANSION:

2. THE NUMBER OF FULL-TIME EMPLOYEES PRIOR TO THE
START-UP OR EXPANSION AND THE PAYROLL OF THE EXISTING EMPLOYEES:

3. THE NUMBER OF QUALIFIED POSITIONS CREATED,
QUALIFIED EMPLOYEES HIRED, AND THE PAYROLL OF THOSE EMPLOYEES: AND

4. ANY OTHER INFORMATION THAT THE DEPARTMENT
REQUIRES BY REGULATION.

(II) THE DEPARTMENT MAY REQUIRE ANY INFORMATION
REQUIRED UNDER THIS PARAGRAPH TO BE VERIFIED BY AN INDEPENDENT
AUDITOR SELECTED BY THE BUSINESS ENTITY.

(5) (7) A QUALIFIED BUSINESS ENTITY MUST OBTAIN, AND SUBMIT TO
THE COMPTROLLER APPROPRIATE STATE AGENCY WITH THE TAX RETURN ON
WHICH THE CREDIT IS CLAIMED, CERTIFICATION FROM THE DEPARTMENT THAT
THE ENTITY HAS MET THE REQUIREMENTS OF THIS SECTION AND IS ELIGIBLE FOR
THE CREDIT.

(E)    (D) (1) IF THE CREDIT ALLOWED UNDER THIS SECTION IN ANY
TAXABLE YEAR EXCEEDS THE TOTAL TAX OTHERWISE OWED BY THE QUALIFIED
BUSINESS ENTITY FOR THAT TAXABLE YEAR, THE QUALIFIED BUSINESS ENTITY
MAY APPLY THE EXCESS AS A CREDIT FOR SUCCEEDING TAXABLE YEARS UNTIL
THE EARLIER OF:

(I) THE FULL AMOUNT OF THE EXCESS IS USED; OR

(II) THE EXPIRATION OF THE 10TH TAXABLE YEAR FROM THE
CREDIT YEAR.

(2) THE CREDIT UNDER THIS SECTION MAY NOT BE CARRIED BACK TO
A PRECEDING TAXABLE YEAR.

(F)     (E) (1) IF, DURING ANY OF THE 5 3 YEARS SUCCEEDING THE CREDIT
YEAR, THE NUMBER OF QUALIFIED EMPLOYEES EMPLOYED BY POSITIONS OF THE
QUALIFYING BUSINESS ENTITY FALLS MORE THAN 5% BELOW THE AVERAGE
NUMBER OF QUALIFIED EMPLOYEES EMPLOYED POSITIONS DURING THE CREDIT
YEAR ON WHICH THE CREDIT WAS COMPUTED, THE CREDIT SHALL BE RECAPTURED
AS FOLLOWS:

(1) (I) THE CREDIT SHALL BE RECOMPUTED TO REDUCE THE CREDIT
BY THE PERCENTAGE REDUCTION OF THE NUMBER OF QUALIFIED EMPLOYEES;

(2) (II) THE RECOMPUTED CREDIT SHALL BE SUBTRACTED FROM THE
AMOUNT OF CREDIT PREVIOUSLY ALLOWED; AND

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