S.B. 412                                                  VETOES

(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.

(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 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.

SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
be applicable to all taxable years beginning after December 31, 1995, but before January
1, 2002; provided however, that:

(1)     The tax credits allowed under Section 2 of this Act shall be allowed only
for employees hired on or after June 1, 1995, but before July 1, 1998; and

(2)     Any excess credits may be carried forward and, subject to the limitations
of, may be applied as a credit for taxable years beginning on or after January 1, 2002.

SECTION 5. AND BE IT FURTHER ENACTED, That, subject to Section 4 of
this Act, Section 2 of this Act shall remain in effect for a period of 2 years and at the end
of June 30, 1998, with no further action required by the General Assembly, Section 2 of
this Act shall be abrogated and of no further force and effect.

SECTION 6. AND BE IT FURTHER ENACTED, That, subject to Sections 3
through 5 of this Act, this Act shall, take effect July 1, 1996.

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