Ch. 4 1997 LAWS OF MARYLAND

10-704.

(a) (1) An individual may claim a credit against the STATE income tax for a
taxable year in the amount determined under [subsection (b)] SUBSECTION (B)(1) of this
section for earned income.

(2) AN INDIVIDUAL MAY CLAIM A CREDIT AGAINST THE COUNTY
INCOME TAX FOR A TAXABLE YEAR IN THE AMOUNT DETERMINED UNDER
SUBSECTION (B)(2) OF THIS SECTION FOR EARNED INCOME.

(b) (1) Except as provided in paragraph [(2)] (3) of this subsection, the credit
allowed AGAINST THE STATE INCOME TAX under [subsection (a)] SUBSECTION (A)(1)
of this section is the lessor of:

(i) 50% of the earned income credit allowable for the taxable year
under § 32 of the Internal Revenue Code; or

(ii) the State income tax for the taxable year.

(2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION, THE

CREDIT ALLOWED AGAINST THE COUNTY INCOME TAX UNDER SUBSECTION (A)(2)

OF THIS SECTION IS THE LESSER OF:

(I) 25% OF THE EARNED INCOME CREDIT ALLOWABLE FOR THE
TAXABLE YEAR UNDER § 32 OF THE INTERNAL REVENUE CODE; OR

(II) THE COUNTY INCOME TAX FOR THE TAXABLE YEAR.

[(2)](3) An individual who files an income tax return for a period of less
than 1 year is allowed from the amount under [paragraph (1) of] this subsection, a
fraction:

(i) the numerator of which is the number of months that the return

covers; and

(ii) the denominator of which is 12.

10-706.

(a) Except as otherwise provided in this section [:

(1)] a credit allowed under this subtitle is allowed against the State income
tax only [; and

(2) the county income tax is based on the State income tax before the State
income tax is reduced by the credit].

(b) [(1)]A credit under § 10-701 of this subtitle is allowed against the total
county and State income taxes.

[(2) The county income tax is based on the amount of State income tax
before the State income tax is reduced by the credit.]

[(c) (1) A credit under § 10-704 of this subtitle:

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