PARRIS N. GLENDENING, Governor                             S.B. 558

(2) THE CREDIT EARNED UNDER PARAGRAPH (1) OF THIS SUBSECTION
SHALL BE ALLOWED RATABLY, WITH ONE-THIRD OF THE CREDIT AMOUNT
ALLOWED ANNUALLY FOR 3 YEARS BEGINNING WITH THE CREDIT YEAR.

(3) THE PORTION OF THE CREDIT EARNED WITH RESPECT TO ANY
QUALIFIED FULL-TIME EMPLOYEE WHO IS EMPLOYED IN THE STATE FOR LESS
THAN 12 FULL MONTHS DURING THE CREDIT YEAR SHALL BE DETERMINED BY
MULTIPLYING THE CREDIT AMOUNT BY A FRACTION:

(I) THE NUMERATOR OF WHICH IS THE NUMBER OF FULL MONTHS
THAT THE QUALIFIED FULL-TIME EMPLOYEE WORKED FOR THE QUALIFIED
COMPANY IN THE STATE DURING THE CREDIT YEAR; AND

(II) THE DENOMINATOR OF WHICH IS 12.

(4) EACH DISTINCT MAJOR BUSINESS FACILITY OF A SINGLE TAXPAYER
SHALL HAVE A SEPARATE CREDIT YEAR AND 3 YEAR ALLOWANCE PERIOD.

(5) A BUSINESS ENTITY MAY NOT EARN MORE THAN $1,000,000 IN
CREDITS UNDER THIS SECTION FOR ANY CREDIT YEAR.

(C) (1) 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 YEARS UNTIL THE EARLIER OF;

(I) THE FULL AMOUNT OF THE EXCESS IS USED; OR

(II) THE EXPIRATION OF THE TENTH TAXABLE YEAR AFTER THE
CREDIT YEAR.

(2) IF A TAXPAYER IS ALLOWED ANOTHER CREDIT AGAINST A TAX
AGAINST WHICH THE CREDIT UNDER THIS SECTION IS ALLOWED OR HAS A CREDIT
CARRYOVER FROM A PRECEDING TAXABLE YEAR, THE TAXPAYER SHALL USE ANY
CREDIT THAT DOES NOT HAVE A CARRYOVER PROVISION, AND THEN ANY CREDIT
THAT IS CARRIED FORWARD FROM A PRECEDING TAXABLE YEAR, BEFORE USING
ANY CREDIT ALLOWED UNDER THIS SECTION.

(D) (1) IN THIS SUBSECTION, "RELATED PARTY" MEANS:

(I) A RELATED PERSON WITHIN THE MEANING OF § 267(B) OF THE
INTERNAL REVENUE CODE; OR

(II) A TRADE OR BUSINESS UNDER COMMON CONTROL WITHIN
THE MEANING OF § 52(B) OF THE INTERNAL REVENUE CODE.

(2) A BUSINESS ENTITY MAY NOT CLAIM THE CREDIT UNDER THIS
SECTION FOR ANY EMPLOYEE;

(I) FOR WHICH A CREDIT UNDER THIS SECTION WAS PREVIOUSLY
EARNED BY A RELATED PARTY;

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