Ch. 351                                    1996 LAWS OF MARYLAND

(3) 10% of up to the first $6,000 of the wages paid to the qualified
employment opportunity employee during the third year of employment.

(d)     For each taxable year, for child care provided or paid for by a business entity
for the children of a qualified employment opportunity employee of the business entity, a
credit is allowed in an amount equal to:

(1)     Up to $600 of the qualified child care expenses incurred for each
qualified employment opportunity employee during the first year of employment;

(2)     Up to $500 of the qualified child care expenses incurred for each
qualified employment opportunity employee during the second year of employment; and

(3)     Up to $400 of the qualified child care expenses incurred for each
qualified employment opportunity employee during the third year of employment.

(e)     (1) A business entity may not claim the credit under this section for an
employee:

(i) Who is hired to replace a laid-off employee or to replace an
employee who is on strike; or

(ii) For whom the business entity simultaneously receives federal or
State employment training benefits.

(2)     A business entity may not claim the credit under this section until it has
notified the appropriate government agency that the qualified employment opportunity
employee has been hired.

(3)     A business entity may not claim the credit under this section for an
employee whose employment lasts less than one year unless the employee:

(i) Voluntarily terminates employment with the employer;

(ii) Is unable to continue employment due to death or a disability; or

if
(iii) Is terminated for cause.

(4)     A business entity may claim a credit reduced by the proportion of a year
that an employee did not work if the employment is less than a year because the
employee:

(i) Voluntarily terminates employment with the employer;

(ii) Is unable to continue employment due to death or a disability; or

(iii) Is terminated for cause.

(f)     If the credit allowed under this section in any taxable year exceeds the total
tax otherwise payable by the business entity for that taxable year, a business entity may
apply the excess as a credit for succeeding taxable years until the earlier of:

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

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