Ch. 379                                    1996 LAWS OF MARYLAND

BY adding to

Article - Insurance

Section 6-105.1

Annotated Code of Maryland

(1995 Volume)

(As enacted by Chapter 36 of the Acts of the General Assembly of 1995)

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

Article 48A - Insurance Code

633.

AN INSURANCE COMPANY MAY CLAIM A CREDIT AGAINST THE PREMIUM TAX
PAYABLE UNDER THIS SUBTITLE FOR WAGES PAID TO A QUALIFIED EMPLOYMENT
OPPORTUNITY EMPLOYEE AND FOR CHILD CARE PROVIDED OR PAID BY THE
INSURANCE COMPANY FOR THE CHILDREN OF A QUALIFIED EMPLOYMENT
OPPORTUNITY EMPLOYEE AS PROVIDED UNDER ARTICLE 88A, § 56 OF THE CODE.

Article 88A - Social Services Administration

56.

(a)     (1) In this section the following words have the meanings indicated.

(2)     "Business entity" means a person conducting or operating a trade or
business in Maryland.

(3)     "Qualified child care expenses" means State regulated child care
expenses that are incurred by a business entity to enable a qualified employment
opportunity employee of the business to be gainfully employed.

(4)     (i) "Qualified employment opportunity employee" means an
individual who is a resident of Maryland and who [ for six THREE months]
IMMEDIATELY before the individual's employment with a business entity was a Maryland
resident and a recipient of benefits from the State under the Aid to Families with
Dependent Children Program AND WHO FOR SIX MONTHS BEFORE THE INDIVIDUAL'S
EMPLOYMENT WITH A BUSINESS ENTITY WAS A MARYLAND RESIDENT.

(ii) "Qualified employment opportunity employee" does not include
an individual who is the spouse of, or has any of the relationships specified in § 152(a)(1)
through (8) of the Internal Revenue Code to, a person who controls, directly or indirectly,
more than 50% of the ownership of the business entity.

(5)     "Wages" means wages, within the meaning of § 51(c)(1), (2), and (3) of
the Internal Revenue Code without regard to § 51(c)(4) of the Internal Revenue Code,
that are paid by a business entity to an employee for services performed in a trade or
business of the employer.

(b)     (1) Except as provided in subsection (e) of this section, a business entity
may claim a tax credit in the amounts determined under subsections (c) and (d) of this

- 2582 -