PARRIS N. GLENDENING, Governor

Ch. 601

(6) (I) "QUALIFIED EMPLOYEE" MEANS AN INDIVIDUAL WHO IS A
NEW EMPLOYEE IN A NEWLY CREATED POSITION OF A HERITAGE TOURISM
ENTERPRISE.

(II) "QUALIFIED EMPLOYEE" DOES NOT INCLUDE AN INDIVIDUAL
WHO:

1. WAS HIRED TO REPLACE ANOTHER INDIVIDUAL WHOM
THE HERITAGE TOURISM ENTERPRISE EMPLOYED IN ANY OF THE 3 TAXABLE YEARS
PRECEDING THE HIRING;

2. WAS REHIRED AFTER BEING LAID OFF BY THE HERITAGE
TOURISM ENTERPRISE FOR 6 MONTHS OR LESS; OR

3. WAS EMPLOYED BY THE HERITAGE TOURISM
ENTERPRISE AND WHOSE JOB FUNCTION WAS TRANSFERRED FROM A LOCATION
WITHIN THE STATE, BUT OUTSIDE OF THE CERTIFIED HERITAGE AREA, BEFORE THE
HERITAGE TOURISM ENTERPRISE CLAIMED THE CREDIT.

(B) A HERITAGE TOURISM ENTERPRISE MAY CLAIM A CREDIT AGAINST THE
STATE INCOME TAX ONLY FOR THE WAGES SPECIFIED IN SUBSECTIONS (C) AND (D)
SUBSECTION (C) OF THIS SECTION THAT ARE PAID TO QUALIFIED EMPLOYEES IN
THE TAXABLE YEAR FOR WHICH THE HERITAGE TOURISM ENTERPRISE CLAIMS THE
CREDIT.

(C) A CREDIT IS ALLOWED TO A HERITAGE TOURISM ENTERPRISE THAT
EQUALS 100% OF THE STATE INCOME TAX PAID BY EACH QUALIFIED EMPLOYEE OF
THE HERITAGE TOURISM ENTERPRISE WHO:

(1) IS NOT HIRED TO REPLACE AN INDIVIDUAL WHOM THE HERITAGE
TOURISM ENTERPRISE EMPLOYED IN THAT OR IN ANY OF THE 3 PRECEDING
TAXABLE YEARS; AND

(2) WAS NOT REHIRED AFTER BEING LAID OFF FOR MORE THAN 6
MONTHS BY THE HERITAGE TOURISM ENTERPRISE.

(D) FOR EACH TAXABLE YEAR AFTER THE TAXABLE YEAR SPECIFIED IN
SUBSECTION (C) OF THIS SECTION, WHILE AN AREA IS DESIGNATED AS A STATE
DESIGNATED HERITAGE AREA, A CREDIT IS ALLOWED THAT EQUALS 50% OF Tim
STATE INCOME TAX PAID BY EACH QUALIFIED EMPLOYEE.

(C) FOR EACH TAXABLE YEAR, FOR THE WAGES PAID TO EACH QUALIFIED
EMPLOYEE, A CREDIT SHALL BE ALLOWED IN AN AMOUNT EQUAL TO:

(1) 5% OF UP TO THE FIRST $20,000 OF THE WAGES PAID TO THE
QUALIFIED EMPLOYEE DURING THE FIRST YEAR OF EMPLOYMENT: AND

(2) 25% OF UP TO THE FIRST $20.000 OF THE WAGES PAID TO THE
QUALIFIED EMPLOYEE DURING EACH OF THE SECOND, THIRD, FOURTH, AND FIFTH
YEARS OF EMPLOYMENT.

(E) (D) IF THE CREDIT AUTHORIZED BY THIS SECTION IN ANY TAXABLE
YEAR EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR, A HERITAGE

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