PARRIS N. GLENDENING, Governor

Ch. 112

(II) FOR WHOM THE BUSINESS ENTITY SIMULTANEOUSLY
RECEIVES FEDERAL OR STATE EMPLOYMENT TRAINING BENEFITS.

(2) A BUSINESS ENTITY MAY NOT CLAIM THE CREDIT UNDER THIS
SECTION UNTIL IT HAS NOTIFIED THE DIVISION THAT A QUALIFIED EMPLOYEE
WITH A DISABILITY HAS BEEN HIRED.

(3) A BUSINESS ENTITY MAY CLAIM A CREDIT IN THE AMOUNT
PROVIDED IN PARAGRAPH (5) OF THIS SUBSECTION FOR AN EMPLOYEE WHOSE
EMPLOYMENT LASTS LESS THAN 1 YEAR IF THE EMPLOYEE:

(I) VOLUNTARILY TERMINATES EMPLOYMENT WITH THE

EMPLOYER;

(II) IS UNABLE TO CONTINUE EMPLOYMENT DUE TO A FURTHER
DISABILITY OR DEATH; OR

(III) IS TERMINATED FOR CAUSE

(4) A BUSINESS ENTITY MAY NOT CLAIM THE CREDIT UNDER THIS
SECTION IF THE BUSINESS ENTITY IS CLAIMING A TAX CREDIT FOR THE SAME
EMPLOYEE UNDER ARTICLE 88A, § 54 OF THE CODE

(5) (1) IF A BUSINESS ENTITY IS ENTITLED TO A TAX CREDIT FOR AN
EMPLOYEE WHO IS EMPLOYED FOR LESS THAN 1 YEAR BECAUSE THE EMPLOYEE
VOLUNTARILY TERMINATES EMPLOYMENT WITH THE EMPLOYER TO TAKE
ANOTHER JOB, THE BUSINESS ENTITY MAY CLAIM A TAX CREDIT OF 20% OF UP TO
THE FIRST $6,000 OF THE WAGES PAID TO THE EMPLOYEE DURING THE COURSE OF
EMPLOYMENT.

(II) IF A BUSINESS ENTITY IS ENTITLED TO A TAX CREDIT FOR AN
EMPLOYEE WHO IS EMPLOYED FOR LESS THAN 1 YEAR FOR A REASON OTHER THAN
THAT DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE AMOUNT OF THE
CREDIT SHALL BE REDUCED BY THE PROPORTION OF A YEAR THAT THE EMPLOYEE
DID NOT WORK.

(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 5TH TAXABLE YEAR AFTER THE TAXABLE
YEAR IN WHICH THE WAGES OR QUALIFIED CHILD CARE OR TRANSPORTATION
EXPENSES FOR WHICH THE CREDIT IS CLAIMED ARE PAID.

(G) 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

- 1643 -