PARRIS N. GLENDENING, Governor                             S.B. 412

(II) THE EXPIRATION OF THE 5TH TAXABLE YEAR FROM THE DATE
ON WHICH THE ORGANIZATION HIRED THE QUALIFIED EMPLOYEE TO WHOM THE
CREDIT FIRST APPLIES.

(f) (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, § 10-206, or § 10-306 of this title.

(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.

10-906.

(a)     Except as provided in § 10-907 of this subtitle, each employer or payor shall:

(1) withhold the income tax required to bo withheld under § 10-908 of this
subtitle; and

(2) pay to the Comptroller the income tax withheld for a period with the
withholding return that covers the period.

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

Article 88A - Social Services Administration

56.

(a)     (2) "Business entity" means:

(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

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