Ch. 76                                     2004 LAWS OF MARYLAND

(II) IF PERFORMED AS PART OF THE REHABILITATION CERTIFIED
UNDER THIS SECTION, WOULD HAVE MADE THE REHABILITATION INELIGIBLE FOR
CERTIFICATION.

(2)      THE GRANT CREDIT ALLOWED UNDER THIS SECTION SHALL BE
RECAPTURED AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION IF, DURING THE
CALENDAR TAXABLE YEAR IN WHICH A CERTIFIED REHABILITATION IS COMPLETED
OR ANY OF THE 4 CALENDAR TAXABLE YEARS SUCCEEDING THE CALENDAR TAXABLE
YEAR IN WHICH THE CERTIFIED REHABILITATION IS COMPLETED, ANY
DISQUALIFYING WORK IS PERFORMED ON THE CERTIFIED HERITAGE STRUCTURE
FOR WHICH THE CERTIFIED REHABILITATION HAS BEEN COMPLETED.

(3)      (I) 1. IF THE DISQUALIFYING WORK IS PERFORMED DURING
THE CALENDAR TAXABLE YEAR IN WHICH THE CERTIFIED REHABILITATION WAS
COMPLETED, 100% OF THE GRANT CREDIT SHALL BE RECAPTURED.

2.       IF THE DISQUALIFYING WORK IS PERFORMED DURING
THE FIRST FULL YEAR SUCCEEDING THE CALENDAR TAXABLE YEAR IN WHICH THE
CERTIFIED REHABILITATION WAS COMPLETED, 80% OF THE GRANT CREDIT SHALL
BE RECAPTURED.

3.       IF THE DISQUALIFYING WORK IS PERFORMED DURING
THE SECOND FULL YEAR SUCCEEDING THE CALENDAR TAXABLE YEAR IN WHICH
THE CERTIFIED REHABILITATION WAS COMPLETED, 60% OF THE GRANT CREDIT
SHALL BE RECAPTURED.

4.       IF THE DISQUALIFYING WORK IS PERFORMED DURING
THE THIRD FULL YEAR SUCCEEDING THE CALENDAR TAXABLE YEAR IN WHICH THE
CERTIFIED REHABILITATION WAS COMPLETED, 40% OF THE GRANT CREDIT SHALL
BE RECAPTURED.

5.       IF THE DISQUALIFYING WORK IS PERFORMED DURING
THE FOURTH FULL YEAR SUCCEEDING THE CALENDAR TAXABLE YEAR IN WHICH
THE CERTIFIED REHABILITATION WAS COMPLETED, 20% OF THE GRANT CREDIT
SHALL BE RECAPTURED.

(II) THE INDIVIDUAL OR BUSINESS ENTITY THAT RECEIVED THE
GRANT CLAIMED THE TAX CREDIT SHALL PAY THE AMOUNT TO BE RECAPTURED AS
DETERMINED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH AS TAXES PAYABLE TO
THE STATE FOR THE CALENDAR TAXABLE YEAR IN WHICH THE DISQUALIFYING
WORK IS PERFORMED.

(F) (1) THE COMPTROLLER MAY DETERMINE, UNDER THE PROCESS FOR
RETURN EXAMINATION AND AUDIT UNDER §§ 13-301 AND 13-302 OF THE TAX -
GENERAL ARTICLE:

(I)      THE AMOUNT OF REHABILITATION EXPENDITURES USED IN
CALCULATING THE CREDIT;

(II)     WHETHER SUCH EXPENDITURES ARE QUALIFIED
REHABILITATION EXPENDITURES UNDER THIS SECTION; AND

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