employers that provide certain commuter benefits to employees; providing for
the maximum amount of the credit per year per employee; providing for the
carryover of unused credit if the credit exceeds the total tax otherwise payable
for a taxable year; defining a certain term; providing for the application of this
Act; and generally relating to a tax credit against the State income tax certain
taxes for employer provided commuter benefits to employees.

BY adding to

Article - Environment

Section 2-901 to be under the new subtitle "Subtitle 9. Tax Credits for

Employer-Provided Commuter Benefits"
Annotated Code of Maryland

(1996 Replacement Volume and 1998 Supplement)

BY adding to

Article - Tax - General
Section 8-220 and 10-712
Annotated Code of Maryland

(1997 Replacement Volume and 1998 Supplement)

BY adding to

Article — Insurance
Section 6-119

Annotated Code of Maryland

(1997 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 Article - Environment

SUBTITLE 9. TAX CREDITS FOR EMPLOYER-PROVIDED COMMUTER BENEFITS.
10-712. 2-901.

(A) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(1) "BUSINESS ENTITY" MEANS:

(I) A PERSON CONDUCTING OR OPERATING A TRADE OR BUSINESS
IN MARYLAND; OR

(II) AN ORGANIZATION OPERATING IN MARYLAND THAT IS EXEMPT
FROM TAXATION UNDER § 501(C)(3) OR (4) OF THE INTERNAL REVENUE CODE.

(2) "INSTRUMENT" MEANS A PASS, TOKEN, FARE CARD, VOUCHER, OR
SIMILAR ITEM.

(B) A BUSINESS ENTITY MAY CLAIM A TAX CREDIT AGAINST THE STATE