PARRIS N. GLENDENING, Governor                             S.B. 558

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1996.

May 23, 1996

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 558.

This bill establishes a job creation tax credit for specified categories of businesses that
establish or expand a "major business facility" in the State. The Department of Business
and Economic Development must certify that a business qualifies for the credit amount.
In order to qualify the business must create at least 60 jobs for "qualified full-time
employees" or at least 30 new jobs if the total payroll is greater than an equivalent of 60
jobs at the average State salary. A business cannot earn more than $1 million in credits
per year.

The Department of Business and Economic Development must annually report to the
Governor and legislative committees by December 1, the businesses that are eligible. By
January 1, 2000, the Department must also conduct a study on the impact of the job
creation tax credits and report its findings to specified legislative committees.

House Bill 262, which was passed by the General Assembly and signed by me on April 30,
1996, accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate
Bill 558.

Sincerely,

Parris N. Glendening

Governor

Senate Bill No. 558

AN ACT concerning

Jobs Creation Tax Credit Act of 1996

FOR the purpose of allowing a credit against the State income tax, financial institution
franchise tax, public service company franchise tax, and insurance premiums tax for
the establishment or expansion of a major business facility in the State under certain
circumstances; providing for calculation of the credit based on the number of new
jobs created as a result of the establishment or expansion of the major business
facility; limiting the credit allowed in any taxable year to the total tax otherwise
payable for that taxable year; providing for the carry forward of unused credit;
providing for recapture of the credit under certain circumstances; requiring the
Comptroller to adopt certain regulations; requiring the Department of Business and

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