PARRIS N. GLENDENING, Governor

Ch. 601

(iv) "Certified nondepreciable historic structure" means a structure
that is not subject to the depreciation allowance under § 167 or § 168 of the Internal
Revenue Code and is:

1.       listed in the National Register of Historic Places;

2.       designated as an individual historic site by a certified local

government;

3.       located in a registered historic district and certified as being
of historic significance by the United States Secretary of the Interior or the Maryland
Historical Trust; or

4.       located in a district designated as historic by a certified local
government and certified as being of historic significance by the certified local
government.

(2)     The subtraction under subsection (a) of this section includes the amount
allowed under paragraph (3) of this subsection for the amortization of the amortizable
basis of a certified nondepreciable historic structure based on a period of 60 months.

(3)     (i) The allowable amortization deduction is the sum of the
amortization expenses for the several months of the taxable year.

(ii) The amortization expense for a month is the amortizable basis at
the end of the month divided by the number of months, including the month for which the
deduction is computed, remaining in the 60-month period.

(iii) The amortizable basis at the end of a month is computed without
regard to the amortization expense for that month.

(4)     To take the amortization for a certified nondepreciable historic
structure, an individual shall file with the Comptroller or the Comptroller's designee, in
the manner and at the time that the Comptroller or designee may require, by the
regulation of the Comptroller, a statement of election to:

(i) take the amortization deduction; and

(ii) begin the 60-month period with:

1.       the month after the month in which the basis is acquired; or

2.       the taxable year after the year in which the basis is
acquired.]

[(i)] (II) (1) The subtraction under subsection (a) of this section includes twice
the amount of expenses for reforestation or timber stand improvement activity on 10 to
100 acres of commercial forest land, exclusive of federal funds.

(2) Of the amount under paragraph (1) of this subsection:

(i) 50% may be claimed in the taxable year in which the Department
of Natural Resources issues an initial certificate of reforestation or timber stand
improvement; and

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