PARRIS N. GLENDENING, Governor

Ch. 626

(I)      [a] A person conducting or operating a trade or business in
Maryland; OR

(II)    AN ORGANIZATION OPERATING IN MARYLAND THAT IS
EXEMPT FROM TAXATION UNDER § 501(C)(3) OR (4) OF THE INTERNAL REVENUE
CODE.

(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
section for the wages and qualified child care expenses with respect to a qualified
employment opportunity employee that are paid in the taxable year for which the
business entity claims the credit.

(2) The same tax credit cannot be applied more than once against different
taxes by the same taxpayer.

(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)    (1) [ If] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION,
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.

(2) PARAGRAPH (1) OF THIS SUBSECTION DOES NOT APPLY TO AN
ORGANIZATION THAT IS EXEMPT FROM TAXATION UNDER § 501(C)(3) OR (4) OF THE
INTERNAL REVENUE CODE.

Article - Tax - General

10-704.3.

(A)    An individual or a corporation may claim a credit against the income tax for
wages paid to qualified employment opportunity employees and for child care provided or
paid for by a business entity for the children of a qualified employment opportunity
employee as provided under Article 88A, § 56 of the Code.

(B)     AN ORGANIZATION THAT IS EXEMPT FROM TAXATION UNDER § 501(C)(3)
OR (4) OF THE INTERNAL REVENUE CODE MAY APPLY THE CREDIT UNDER THIS
SECTION AS A CREDIT AGAINST INCOME TAX THAT THE ORGANIZATION HAS
WITHHELD FROM THE WAGES OF ITS EMPLOYEES AND IS REQUIRED TO PAY TO THE
COMPTROLLER UNDER § 10-906(A) OF THIS TITLE DUE ON UNRELATED BUSINESS
TAXABLE INCOME AS PROVIDED UNDER §§ 10-304 AND 10-812 OF THIS TITLE.

SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall
be applicable to all taxable years beginning after December 31, 1995.

- 3595 -