HOLDING COMPANY ACT OF 1935 (15 U.S.C. § 79, ET SEQ.), OF A PUBLIC SERVICE
COMPANY DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH.

(3) "QUALIFIED CORPORATE HEADQUARTERS" MEANS:

(I) A CORPORATION'S PRINCIPAL PLACE OF BUSINESS, WHERE A
MAJORITY OF THE OFFICERS OF THE CORPORATION ORDINARILY AND REGULARLY
PERFORM THEIR CORPORATE DUTIES AND FUNCTIONS; OR

(II) A CORPORATION'S REGIONAL HEADQUARTERS LOCATED IN A
MARYLAND COUNTY ON THE DELMARVA PENINSULA.

(B) FOR A TAXABLE YEAR BEGINNING BEFORE JANUARY 1, 2005, A
MULTIJURISDICTIONAL ELECTRIC COMPANY MAY CLAIM A CREDIT AGAINST THE
STATE INCOME TAX IN AN AMOUNT EQUAL TO 25% OF THE WAGES PAID DURING THE
TAXABLE YEAR TO EMPLOYEES OF THE MULTIJURISDICTIONAL ELECTRIC COMPANY
THAT ARE EMPLOYED AND REGULARLY WORK AT THE QUALIFIED CORPORATE
HEADQUARTERS OF THE MULTIJURISDICTIONAL ELECTRIC COMPANY.

(C) (1) FOR ANY TAXABLE YEAR, THE CREDIT ALLOWED UNDER THIS
SECTION MAY NOT EXCEED THE LESSER OF:

(I) THE STATE INCOME TAX BEFORE APPLICATION OF THE
CREDITS ALLOWED UNDER THIS SECTION AND §§ 10-701 AND 10-701.1 OF THIS
SUBTITLE BUT AFTER APPLICATION OF ALL OTHER CREDITS ALLOWED UNDER THIS
SUBTITLE; AND

(II) 1. $2,000,000 IF THE QUALIFIED - CORPORATE
HEADQUARTERS IS THE CORPORATION'S PRINCIPAL PLACE OF BUSINESS; AND

2. $500,000 IF THE QUALIFIED CORPORATE HEADQUARTERS
IS NOT THE CORPORATION'S PRINCIPAL PLACE OF BUSINESS.

(2) THE UNUSED AMOUNT OF THE CREDIT FOR ANY TAXABLE YEAR MAY
NOT BE CARRIED OVER TO ANY OTHER TAXABLE YEAR

11-101.

(d) (1) "Production activity" means:

(ii) generating electricity FOR SALE OR FOR USE IN ANOTHER
PRODUCTION ACTIVITY;

(j) (3) "Taxable price" does not include:

(i) a charge that is made in connection with a sale and is stated as a
separate item of the consideration for:

1. a delivery, freight, or other transportation service for
delivery directly to the buyer by the vendor or by another person acting for the
vendor, UNLESS THE TRANSPORTATION SERVICE IS A TAXABLE SERVICE;

(k) "Taxable service" means: