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§ 8-204. Computation of net earnings

West's Annotated Code of MarylandTax-General

West's Annotated Code of Maryland
Tax-General (Refs & Annos)
Title 8. Franchise Taxes (Refs & Annos)
Subtitle 2. Financial Institution Franchise Tax (Refs & Annos)
MD Code, Tax - General, § 8-204
§ 8-204. Computation of net earnings
In general
(a) A financial institution shall compute its net earnings:
(1) based on the accounting period used as its fiscal year; and
(2) subject to the modifications required under this section, in the manner that a corporation computes, for purposes of the income tax, the Maryland modified income.
Additions to net earnings
(b) A financial institution shall add to its net earnings computed under subsection (a) of this section the amounts that, even if otherwise allowed to be subtracted under § 10-307(b) and (g)(1) and (4) of this article, equal:
(1) profit realized from the sale or exchange of bonds issued by this State or a political subdivision of this State;
(2) dividends received from foreign corporations and included in federal gross income under § 78 of the Internal Revenue Code;
(3) interest derived from a United States obligation;
(4) State tax-exempt interest received from a mutual fund and allowed to be subtracted under § 10-307(g)(4) of this article; and
(5) interest excluded from federal gross income under § 103 of the Internal Revenue Code and derived from a bond:
(i) issued by a state or a public corporation, special district, political subdivision of a state or their instrumentalities; or
(ii) under § 150 of the Internal Revenue Code, treated as a bond issued by a state or a public corporation, special district, or political subdivision of a state or their instrumentalities.
Subtractions from net earnings
(c) A financial institution shall subtract from its net earnings computed under subsection (a) of this section interest expense incurred to purchase or carry a bond as defined in subsection (b)(5) of this section.

Credits

Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1988, c. 565; Acts 1989, c. 110, § 1; Acts 1989, c. 178, § 3; Acts 1989, c. 545, § 1; Acts 1991, c. 55, § 1; Acts 1994, c. 265, § 1, eff. Oct. 1, 1994; Acts 1995, c. 127, § 1, eff. July 1, 1995; Acts 1996, c. 10, § 1, eff. April 9, 1996; Acts 1996, c. 99, § 1, eff. July 1, 1996; Acts 1997, c. 14, § 1, eff. April 8, 1997.
Formerly Art. 81, § 128A.
MD Code, Tax - General, § 8-204, MD TAX GENERAL § 8-204
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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