Ch. 379

1996 LAWS OF MARYLAND

(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 IN THE
AMOUNT PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION FOR AN EMPLOYEE WHOSE
EMPLOYMENT LASTS LESS THAN I YEAR IF 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.

(4) (I) IF A BUSINESS ENTITY IS ENTITLED TO A TAX CREDIT FOR AN
EMPLOYEE WHO IS EMPLOYED FOR LESS THAN I YEAR BECAUSE THE EMPLOYEE
VOLUNTARILY TERMINATES EMPLOYMENT WITH THE EMPLOYER TO TAKE ANOTHER
JOB. THE BUSINESS ENTITY MAY CLAIM A TAX CREDIT OF 30% OF UP TO THE FIRST $6,000
OF THE WAGES PAID TO THE EMPLOYEE DURING THE COURSE OF EMPLOYMENT.

(II) IF A BUSINESS ENTITY IS ENTITLED TO A TAX CREDIT FOR AN
EMPLOYEE WHO IS EMPLOYED FOR LESS THAN I YEAR FOR A REASON OTHER THAN
THAT DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE AMOUNT OF THE
CREDIT SHALL BE REDUCED BY THE PROPORTION OF A YEAR THAT THE EMPLOYEE DID
NOT WORK.

(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

(2)     The expiration of the fifth taxable year after the taxable year in which
the wages or qualified child care expenses for which the credit is claimed are paid.

(g)     If a credit is claimed under this section, the claimant must make the addition
required in § 10-205 or § 10-306 of the Tax - General Article.

(h) The Comptroller in cooperation with the Department of Labor, Licensing,
and Regulation and the Department of Human Resources shall administer the credit
under this section.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Insurance

6-105.1.

AN INSURER 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
INSURER FOR THE CHILDREN OF A QUALIFIED EMPLOYMENT OPPORTUNITY
EMPLOYEE AS PROVIDED UNDER ARTICLE 88A, § 56 OF THE CODE.

SECTION 3. AND BE IT FURTHER ENACTED, That:

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