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(11) "SECRETARY" MEANS THE SECRETARY OF BUSINESS AND ECONOMIC
DEVELOPMENT.
(12) (I) " ELIGIBLE START-UP COSTS" MEANS UP TO A TOTAL OF $500,000
OF:
(I) 1. A COMPANY'S COST TO FURNISH AND EQUIP A NEW
LOCATION FOR ORDINARY BUSINESS FUNCTIONS, INCLUDING COMPUTERS,
NONRECURRING COSTS OF FIXED TELECOMMUNICATIONS EQUIPMENT,
FURNISHINGS, AND OFFICE EQUIPMENT; AND
(II) 2. A COMPANY'S EXPENDITURES FOR MOVING COSTS,
SEPARATION COSTS, AND ANY OTHER EXPENDITURE INCURRED BY A COMPANY
DIRECTLY RELATED TO A MOVE FROM AN EXISTING LOCATION OUTSIDE OF
MARYLAND TO A LOCATION IN A QUALIFIED DISTRESSED COUNTY IN MARYLAND.
(II) " ELIGIBLE START-UP COSTS" DOES NOT INCLUDE ANY COSTS
INCURRED BY A BUSINESS ENTITY BEFORE NOTIFYING THE DEPARTMENT OF ITS
INTENT TO SEEK CERTIFICATION AS QUALIFYING FOR THE TAX CREDIT UNDER THIS
SECTION.
(B) (1) A QUALIFIED BUSINESS ENTITY MAY CLAIM A TAX CREDIT UNDER
THIS SUBSECTION AGAINST THE STATE INCOME TAX FOR THE COSTS OF AN
ELIGIBLE ECONOMIC DEVELOPMENT PROJECT IN A QUALIFIED DISTRESSED
COUNTY IF THE AMOUNT OF THE QUALIFIED BUSINESS ENTITY'S TOTAL ELIGIBLE
PROJECT COSTS FOR THE ELIGIBLE ECONOMIC DEVELOPMENT PROJECT IS AT LEAST
$500,000.
(2) THE CREDIT ALLOWED UNDER THIS SUBSECTION EQUALS THE
LESSER OF:
(I) 100% OF THE ELIGIBLE PROJECT COSTS FOR THE ELIGIBLE
ECONOMIC DEVELOPMENT PROJECT, LESS THE AMOUNT OF THE CREDIT ALLOWED
WITH RESPECT TO THE PROJECT FOR PRIOR TAXABLE YEARS; OR
(II) THE STATE INCOME TAX FOR THE TAXABLE YEAR ON THE
QUALIFIED BUSINESS ENTITY'S INCOME GENERATED BY OR ARISING OUT OF THE
PROJECT, AS DETERMINED UNDER PARAGRAPH (3) OF THIS SUBSECTION.
(3) (I) THE STATE INCOME TAX FOR THE TAXABLE YEAR ON THE
QUALIFIED BUSINESS ENTITY'S INCOME GENERATED BY OR ARISING OUT OF AN
ELIGIBLE ECONOMIC DEVELOPMENT PROJECT SHALL EQUAL THE DIFFERENCE
BETWEEN:
1. THE STATE INCOME TAX WITHOUT REGARD TO THIS
SECTION; AND
2. THE STATE INCOME TAX ON THE QUALIFIED BUSINESS
ENTITY'S MARYLAND TAXABLE INCOME REDUCED BY THE AMOUNT OF ITS NET
INCOME ATTRIBUTABLE TO THE ELIGIBLE ECONOMIC DEVELOPMENT PROJECT.
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