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PARRIS N. GLENDENING, Governor
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Ch. 515
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(1) THE FULL AMOUNT OF THE EXCESS IS USED; OR
(2) THE EXPIRATION OF THE 15TH TAXABLE YEAR AFTER THE TAXABLE
YEAR IN WHICH THE MARYLAND QUALIFIED RESEARCH AND DEVELOPMENT
EXPENSE WAS INCURRED.
(E) (1) IN DETERMINING THE AMOUNT OF THE CREDIT UNDER THIS
SECTION:
(I) ALL MEMBERS OF THE SAME CONTROLLED GROUP OF
CORPORATIONS, AS DEFINED UNDER § 41(F) OF THE INTERNAL REVENUE CODE,
SHALL BE TREATED AS A SINGLE TAXPAYER; AND
(II) THE CREDIT ALLOWABLE BY THIS SECTION TO EACH MEMBER
SHALL BE ITS PROPORTIONATE SHARES OF THE QUALIFIED RESEARCH EXPENSES
GIVING RISE TO THE CREDIT.
(2) THE COMPTROLLER SHALL ADOPT REGULATIONS- PROVIDING FOR:
(I) DETERMINATION OF THE AMOUNT OF THE. CREDIT UNDER THIS
SECTION IN THE CASE OF TRADES OR BUSINESSES,. WHETHER OR NOT
INCORPORATED, THAT ARE UNDER COMMON CONTROL;
(II) PASS-THROUGH AND ALLOCATION OF THE CREDIT IN THE
CASE OF ESTATES AND TRUSTS, PARTNERSHIPS, UNINCORPORATED TRADES OR
BUSINESSES, AND S CORPORATIONS;
(III) ADJUSTMENTS IN THE CASE OF ACQUISITIONS AND
DISPOSITIONS DESCRIBED IN § 41(F)(3) OF THE INTERNAL REVENUE CODE; AND
(IV) DETERMINATION OF THE CREDIT IN THE CASE OF SHORT
TAXABLE YEARS.
(3) THE REGULATIONS ADOPTED' UNDER PARAGRAPH (2) OF THIS
SUBSECTION SHALL BE BASED ON PRINCIPLES SIMILAR TO THE PRINCIPLES
APPLICABLE UNDER § 41 OF THE INTERNAL REVENUE CODE AND REGULATIONS
ADOPTED THEREUNDER
(F) (1) THE DEPARTMENT OF BUSINESS AND ECONOMIC DEVELOPMENT
AND THE COMPTROLLER JOINTLY SHALL ADOPT REGULATIONS TO PRESCRIBE
STANDARDS FOR DETERMINING WHEN RESEARCH OR DEVELOPMENT IS
CONSIDERED CONDUCTED IN THE STATE FOR PURPOSES OF DETERMINING THE
CREDIT UNDER THIS SECTION.
(2) IN ADOPTING REGULATIONS UNDER THIS SUBSECTION, THE
DEPARTMENT AND THE COMPTROLLER MAY CONSIDER:
(I) THE LOCATION WHERE SERVICES ARE PERFORMED;
(II) THE RESIDENCE OR BUSINESS LOCATION OF THE PERSON OR
PERSONS PERFORMING SERVICES;
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- 2765 -
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