ROBERT L. EHRLICH, JR., Governor                              Ch. 76

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 taxable
year in which the certified rehabilitation was completed. 100% of the credit shall be
recaptured.

2. If the disqualifying work is performed during the first full
year succeeding the taxable year in which the certified rehabilitation was completed.
80% of the credit shall be recaptured.

3. If the disqualifying work is performed during the second
full year succeeding the taxable year in which the certified rehabilitation was
completed, 60% of the credit shall be recaptured.

4. If the disqualifying work is performed during the third full
year succeeding the taxable year in which the certified rehabilitation was completed,
40% of the credit shall be recaptured.

5. If the disqualifying work is performed during the fourth
full year succeeding the taxable year in which the certified rehabilitation was
completed, 20% of the credit shall be recaptured.

(ii) Except as provided under paragraph (4) of this subsection, the
business entity or individual that claimed the credit shall pay the amount to be
recaptured as determined under subparagraph (i) of this paragraph as taxes payable
to the State for the taxable year in which the disqualifying work is performed.

(4) Recapture of the credit allowed under this section is not required if
the business entity or individual that claimed the credit does not own an interest in
the certified heritage structure when the disqualifying work is performed.

(f) A refund payable under subsection (c) of this section:

(1)     Operates to reduce the income tax revenue from corporations if the
person entitled to the refund is a corporation subject to the income tax under Title 10
of the Tax - General Article;

(2)     Operates to reduce insurance premium tax revenues if the person
entitled to the refund is subject to taxation under Title 6 of the Insurance Article; and

(3)     Operates to reduce the income tax revenue from individuals if the
person entitled to the refund is:

(i) An individual subject to the income tax under Title 10 of the Tax
- General Article; or

(ii) An organization exempt from taxation under § 501(c)(3) of the
Internal Revenue Code.

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