(7) The appropriate treatment of self-generated electricity under the
State and local tax structure, including the effect of self-generation on public service
company franchise tax and local energy tax revenues and the effectiveness of the
special use tax on electricity under this Act in preventing leakage from the public
service company franchise tax from self-generated electricity; and

(8) The effect of the 50% personal property tax exemption on the
competitiveness of Maryland-based electric generation.

SECTION 5. 7. AND BE IT FURTHER ENACTED, That, except as provided in
Sections 3 and 4 of this Act, this Act shall take effect July 1, 1999.

Approved April 8, 1999.

CHAPTER 7
(Senate Bill 8)

AN ACT concerning

Maryland Higher Education Investment Program - Income Tax Subtraction

Modification for Contributions

FOR the purpose of providing that a certain limitation on a subtraction modification
for certain payments made under a higher education investment contract in
accordance with the Maryland Higher Education Investment Program is
applicable to each higher education investment contract; allowing certain
amounts disallowed under the subtraction modification as a result of the
limitation to be carried over and subtracted for succeeding taxable years;
providing for the retroactive application of this Act; making this Act an
emergency measure; and generally relating to a subtraction modification for
payments made under the Maryland Higher Education Investment Program.

BY repealing and reenacting, with amendments,
Article - Tax - General
Section 10-208(n)
Annotated Code of Maryland

(1997 Replacement Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Tax - General

10-208.

(n) (1) The subtraction under subsection (a) of this section includes the
amount of advance payments of undergraduate tuition made by an individual
DURING THE TAXABLE YEAR as provided under a higher education investment
contract in accordance with the Maryland Higher Education Investment Program.