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PARRIS N. GLENDENING, Governor
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S.B. 140
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(I) under § 10-208(n) of this subtitle for the taxable year and all
prior taxable years for the individual's PURCHASER'S payments to the [higher
education investment] PREPAID contract under which the refund OR DISTRIBUTION
is received; OR
(II) UNDER § 10-208(O) OF THIS SUBTITLE FOR THE TAXABLE YEAR
AND ALL PRIOR TAXABLE YEARS FOR CONTRIBUTIONS MADE BY A CONTRIBUTOR TO
AN INVESTMENT ACCOUNT UNDER WHICH THE REFUND OR DISTRIBUTION IS
RECEIVED.
(I) (1) IN THIS SUBSECTION, "INVESTMENT ACCOUNT", "QUALIFIED
DESIGNATED BENEFICIARY', "CONTRIBUTOR" AND "QUALIFIED HIGHER EDUCATION
EXPENSES" HAVE THE MEANINGS STATED IN § 18-19A-01 OF THE EDUCATION
ARTICLE.
(2) THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES
THE AMOUNT OF ANY DISTRIBUTION RECEIVED BY A CONTRIBUTOR IN THE TAXABLE
YEAR FROM AN INVESTMENT ACCOUNT TO THE EXTENT THE DISTRIBUTION IS NOT
USED ON BEHALF OF THE QUALIFIED DESIGNATED BENEFICIARY FOR QUALIFIED
HIGHER EDUCATION EXPENSES.
(3) THE AMOUNT OF THE ADDITION REQUIRED UNDER THIS
SUBSECTION SHALL BE REDUCED BY ANY AMOUNT INCLUDED IN THE
CONTRIBUTOR'S FEDERAL ADJUSTED CROSS INCOME AS A RESULT OF THE
DISTRIBUTION.
(4) THE CUMULATIVE AMOUNT OF THE ADDITION UNDER THIS
SUBSECTION FOR THE TAXABLE YEAR AND ALL PRIOR TAXABLE YEARS MAY NOT
EXCEED THE CUMULATIVE AMOUNT ALLOWED AS A SUBTRACTION UNDER $
10-208(O) OF THIS SUBTITLE FOR THE TAXABLE YEAR AND ALL PRIOR TAXABLE
YEARS FOR THE CONTRIBUTOR'S CONTRIBUTIONS TO THE INVESTMENT ACCOUNT
FROM WHICH THE DISTRIBUTION IS RECEIVED.
10-207.
(a) To the extent included in federal adjusted gross income, the amounts under
this section are subtracted from the federal adjusted gross income of a resident to
determine Maryland adjusted gross income.
(s) (1) (I) In this subsection, "tuition" means the charges imposed by an
institution of higher education for enrollment at the institution and includes
registration and all fees required as a condition of enrollment THE FOLLOWING
WORDS HAVE THE MEANINGS INDICATED.
(II) "QUALIFIED BENEFICIARY" HAS THE MEANING STATED IN §
18-1901 OF THE EDUCATION ARTICLE.
(III) "QUALIFIED DESIGNATED BENEFICIARY" HAS THE MEANING
STATED IN § 18-19A-01 OF THE EDUCATION ARTICLE.
(IV) "QUALIFIED HIGHER EDUCATION EXPENSES" HAS THE
MEANING STATED IN § 529 OF THE INTERNAL REVENUE CODE.
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- 3633 -
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