Ch. 557                                    2004 LAWS OF MARYLAND

(1) TO REQUIRE A CORPORATION TO ADD TO ITS NET INCOME MORE
THAN ONCE ANY AMOUNT OF INTEREST EXPENSE OR INTANGIBLE EXPENSE THAT
THE CORPORATION PAYS, ACCRUES, OR INCURS TO A RELATED MEMBER; OR

(2) TO LIMIT OR NEGATE ANY OTHER AUTHORITY PROVIDED TO THE
COMPTROLLER UNDER THIS ARTICLE, INCLUDING:

(I) THE AUTHORITY TO MAKE ADJUSTMENTS UNDER § 10-109 OR §
10-402(D) OF THIS TITLE; OR

(II) THE AUTHORITY TO ENTER INTO AGREEMENTS AND
COMPROMISES OTHERWISE ALLOWED BY LAW.

(E) (G) THE COMPTROLLER SHALL ADOPT ANY REGULATIONS THAT ARE
NECESSARY OR APPROPRIATE TO IMPLEMENT THIS SECTION.

10-725.

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

(2) "PAYEE CORPORATION" MEANS A CORPORATION PERSON THAT HAS
RECEIVED PAYMENTS OF ROYALTIES, INTEREST, OR SIMILAR INCOME FROM
INTANGIBLES FROM A RELATED MEMBER

(3) "RELATED MEMBER" HAS THE SAME MEANING AS SET FORTH IN §
10-306.1 OF THIS TITLE.

(B) A PAYEE CORPORATION MAY CLAIM THE CREDIT DESCRIBED IN
SUBSECTION (C) OF THIS SECTION IF, FOR THE SAME TAXABLE YEAR, THE RELATED
MEMBER THAT PAID TO THE PAYEE CORPORATION THE ROYALTIES, INTEREST, OR
SIMILAR INCOME FROM INTANGIBLES:

(1) IS SUBJECT TO THE ADDITION MODIFICATION SET FORTH IN §
10-306.1 OF THIS TITLE; AND

(2) PAID TO THE COMPTROLLER THE FULL AMOUNT OF MARYLAND
CORPORATION INCOME TAX DEVELOPED ON THE MARYLAND INCOME TAX RETURN
ON WHICH THE ADDITION MODIFICATION SET FORTH IN § 10-306.1 OF THIS TITLE
WAS INCLUDED.

(C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE AMOUNT OF
THE CREDIT ALLOWED UNDER SUBSECTION (B) OF THIS SECTION IS EQUAL TO THE
MARYLAND INCOME TAX LIABILITY OF THE RELATED MEMBER THAT PAID THE
ROYALTIES, INTEREST, OR SIMILAR INCOME FROM INTANGIBLES TO THE PAYEE
CORPORATION, AS COMPUTED ON ITS MARYLAND INCOME TAX RETURN FILED WITH
THE COMPTROLLER, REDUCED BY THE MARYLAND INCOME TAX LIABILITY OF THE
RELATED MEMBER THAT PAID THE ROYALTIES, INTEREST, OR SIMILAR INCOME
FROM INTANGIBLES TO THE PAYEE CORPORATION, COMPUTED WITHOUT REGARD
TO THE ADDITION MODIFICATION REQUIRED IN § 10-306.1 OF THIS TITLE.

(2) (I) FOR ANY TAXABLE YEAR, THE CREDIT ALLOWED UNDER THIS
SECTION MAY NOT EXCEED THE STATE INCOME TAX LIABILITY OF THE PAYEE FOR

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