Ch. 84                                     1996 LAWS OF MARYLAND

10-704.5.

AN INDIVIDUAL OR A CORPORATION MAY CLAIM A CREDIT AGAINST THE
INCOME TAX FOR WAGES PAID TO QUALIFIED EMPLOYEES AS PROVIDED UNDER §
21-307 OF THE EDUCATION ARTICLE.

SECTION 4. AND BE IT FURTHER ENACTED, That the Department of Fiscal
Services, based on information provided by and in consultation with the Department of
Business and Economic Development, the Department of Budget and Fiscal Planning,
the Comptroller, the Department of Assessments and Taxation, the Insurance
Commissioner, and appropriate representatives of private employers, shall conduct a
study of the efficacy and effectiveness of the tax credit program established under Section
1 of this Act in increasing the number of not jobs in the State. The Department of Fiscal
Services shall conduct an analysis of the profile of employers having taken advantage of
these credits in hiring now employees, cost effectiveness of the subsidy in reaching State
goals, and the appropriateness of the level of the tax credits. The study shall also include
an analysis of the potential effectiveness of the program based on varying the size,
duration, and structure of the subsidy. The Department shall complete and present the
results of the study to the Senate Budget and Taxation Committee and the House
Committee on Ways and Means by September 1, 2002.

SECTION 5. AND BE IT FURTHER ENACTED, That the Department of Fiscal
Services, based on information provided by and in consultation with the Department of
Education, the Governor's Office for Individuals with Disabilities, the Developmental
Disabilities Administration, the Department of Assessments and Taxation and the
Comptroller, shall conduct a study of the efficacy and effectiveness of the tax credit
program established under Section 3 of this Act in increasing the employment and
prospects for self sufficiency of the target population including an analysis of the profile
of employers having taken advantage of these credits in hiring new employees, cost
effectiveness of the subsidy in reaching State goals, and the appropriateness of the level
of the tax credits. The study shall also include an analysis of the potential effectiveness of
the program based on varying the size, duration, and structure of the subsidy. The
Department shall complete and present the results of the study to the Senate Budget and
Taxation Committee and the House Committee on Ways and Means by December 1,
1999.

SECTION 6. AND BE IT FURTHER ENACTED, That the General Assembly
finds that the widespread adoption of tax subsidies intended to move jobs from one state
to another reduces revenues in all participating states without increasing the total number
and quality of jobs. Therefore, the Governor shall work with chief executive officers of
Delaware, the District of Columbia, North Carolina, Pennsylvania, Virginia, and West
Virginia to negotiate an agreement among all of those states by July 1, 1998, for the
repeal of any law in each state that provides a tax subsidy, including any tax credit,
deduction, exemption, or other modification, that is intended to create new jobs or entice
new jobs to the state. The agreement shall specify the sections of the laws of each state
that allow for such a tax subsidy and shall provide that each state will adopt legislation to
repeal those sections of the laws of that executive's state, contingent on the enactment of
the corresponding legislation by each of the other states. In connection with the
agreement, the executives shall propose approaches for ensuring continuing compliance

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