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.

(e) The subtraction under subsection (a) of this section includes expenses for
household and dependent care services not exceeding the dollar limit allowed under §
21(c) of the Internal Revenue Code and determined without reference to the
percentage limitation in § 21(a)(2) of the Internal Revenue Code.

10-712.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "DEPENDENT CARE CREDIT" MEANS THE CREDIT ALLOWED FOR
EXPENSES FOR HOUSEHOLD AND DEPENDENT CARE SERVICES UNDER § 21 OF THE
INTERNAL REVENUE CODE.

(3) "QUALIFYING CHILD CARE OR AFTER SCHOOL OPPORTUNITY"
MEANS A PROGRAM THAT:

(I) PROVIDES PRODUCTIVE, SUPERVISED ACTIVITY FOR

SCHOOL AGE CHILDREN WHEN THEY ARE NOT IN SCHOOL OR FOR PRE SCHOOL AGE
CHILDREN;

(II) COMPLIES WITH ALL APPLICABLE STATE LAWS, INCLUDING
ALL APPLICABLE LICENSING REGULATIONS; AND

(III) IS REGULATED OR LICENSED BY THE DEPARTMENT OF HUMAN
RESOURCES OR IS APPROVED BY THE DEPARTMENT OF HUMAN RESOURCES AS
QUALIFYING FOR THE TAX CREDIT UNDER THIS SECTION.

(4) "QUALIFYING CHILD" MEANS A DEPENDENT WHO IS UNDER THE AGE
OF 18 AND WITH RESPECT TO WHOM THE TAXPAYER IS ENTITLED TO A DEDUCTION
UNDER § 151(C) OF THE INTERNAL REVENUE CODE.

(2) "FEDERAL CHILD AND DEPENDENT CARE CREDIT' MEANS THE CHILD
AND DEPENDENT CARE CREDIT PROPERLY CLAIMED BY AN INDIVIDUAL FOR THE
TAXABLE YEAR UNDER § 21 OF THE INTERNAL REVENUE CODE.

(5) (3) "QUALIFYING INDIVIDUAL" MEANS A QUALIFYING INDIVIDUAL
WITHIN THE MEANING OF § 21(B) OF THE INTERNAL REVENUE CODE.

(B) AN INDIVIDUAL WHOSE FEDERAL ADJUSTED GROSS INCOME FOR THE
TAXABLE YEAR DOES NOT EXCEED $70,000 $40,000, OR $35,000 $20,000 IN THE CASE OF
A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, MAY CLAIM A CREDIT AGAINST
THE STATE INCOME TAX AS PROVIDED IN THIS SECTION FOR EXPENSES PAID BY THE