PARRIS N. GLENDENING, Governor                             Ch. 354

CHAPTER 354
(Senate Bill 26)

AN ACT concerning

Income Tax - Subtraction Modification for Adoption Expenses

FOR the purpose of altering certain maximum amounts allowed as a subtraction
modification under the income tax for certain expenses incurred by adoptive parents
in the adoption of a child; limiting the subtraction modification for certain adoption
expenses to children domiciled in Maryland; and providing for the application of
this Act.

BY repealing and reenacting, with amendments,
Article - Tax - General
Section 10-208(b)
Annotated Code of Maryland
(1988 Volume and 1995 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

10-208.

(b) The subtraction under subsection (a) of this section includes reasonable and
necessary adoption fees, court costs, attorney fees, and other expenses INCURRED TO
ADOPT A CHILD WHO IS DOMICILED IN MARYLAND not exceeding:

(1)     [$2,000] $3,000 that a parent incurs in the adoption of a child whom the
State determines is a child with a special need, as described in § 473(c)(1) and (2) of the
Social Security Act, if the adoption is made through a private, not for profit, licensed
adoption agency, or a public child welfare agency; and

(2)     [$1,000] $2,000 that a parent incurs in the adoption of a child without a
special need as provided under item (1) of this subsection.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1996 and shall be applicable to all taxable years beginning after December 31,
1995.

Approved May 14, 1996.

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