(b) (1) An eligible low income taxpayer may claim a credit against the
STATE income tax for a taxable year in the amount determined under subsection (c) of
this section.

(2) AN ELIGIBLE LOW INCOME TAXPAYER MAY CLAIM A CREDIT
AGAINST THE COUNTY INCOME TAX FOR A TAXABLE YEAR IN THE AMOUNT
DETERMINED UNDER SUBSECTION (D) OF THIS SECTION.

(c) [(1)] Except as provided in [paragraph (2) of this subsection]
SUBSECTION (E) OF THIS SECTION, the credit allowed AGAINST THE STATE INCOME
TAX under [subsection (b)] SUBSECTION (B)(1) of this section equals the lesser of:

[(i)] (1) the State income tax determined after subtracting the credit
allowed under § 10-704(b)(1) of this subtitle; or

[(ii)] (2) an amount equal to 5% of the eligible low income taxpayer's
earned income, as defined under § 32(c)(2) of the Internal Revenue Code.

(D) EXCEPT AS PROVIDED IN SUBSECTION (E) OF THIS SECTION, THE CREDIT
ALLOWED AGAINST THE COUNTY INCOME TAX UNDER SUBSECTION (B)(2) OF THIS
SECTION EQUALS THE LESSER OF:

(1) THE COUNTY INCOME TAX DETERMINED AFTER SUBTRACTING THE
CREDIT ALLOWED UNDER § 10-704(C) OF THIS SUBTITLE; OR

(2) AN AMOUNT EQUAL TO THE COUNTY INCOME TAX RATE MULTIPLIED
TIMES THE ELIGIBLE LOW INCOME TAXPAYER'S EARNED INCOME, AS DEFINED
UNDER § 32(C)(2) OF THE INTERNAL REVENUE CODE.

[(2)] (E) Of the amount determined under [paragraph (1) of this
subsection] SUBSECTION (C) OR SUBSECTION (D) OF THIS SECTION, an individual who
is a nonresident or is a resident of the State for only a part of the year is allowed only
a fraction:

[(i)] (1) the numerator of which is the individual's Maryland
adjusted gross income; and

[(ii)] (2) the denominator of which is the individual's federal
adjusted gross income.

10-712.

(A) (1) AN INDIVIDUAL MAY CLAIM A CREDIT AGAINST THE STATE INCOME
TAX FOR A TAXABLE YEAR IN AN AMOUNT EQUAL TO THE LESSER OF:

(I) THE STATE INCOME TAX FOR THE TAXABLE YEAR; OR

(II) THE PRODUCT OF MULTIPLYING THE NUMBER OF EXEMPTIONS
ALLOWED FOR THE TAXABLE YEAR UNDER § 10-211(1) AND (2) OF THIS TITLE TIMES;

1. $31.50 FOR A TAXABLE YEAR BEGINNING AFTER
DECEMBER 31, 1998 BUT BEFORE JANUARY 1, 2001;