Maryland 2022 Regular Session

Maryland House Bill HB321 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0321
6	6
7	7	HOUSE BILL 321
8	8	Q3 2lr2006
9	9	SB 458/19 – B&T CF 2lr2004
10	10	By: Delegate Luedtke
11	11	Introduced and read first time: January 19, 2022
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Corporate Income Tax – Single Sales Factor Apportionment – Deferred Tax 2
19	19	Relief 3
20	20
21	21	FOR the purpose of providing a subtraction modification under the Maryland corporate 4
22	22	income tax for certain changes to a certain corporation’s deferred tax assets or 5
23	23	liabilities that are the result of certain acts of the General Assembly; providing that 6
24	24	the subtraction modification may be claimed only for certain taxable years; providing 7
25	25	that the subtraction may not be reduced as a result of an event that occurs after the 8
26	26	calculation of the subtraction; providing, under certain circumstances, for the 9
27	27	carryforward of the subtraction; requiring a corporation that intends to claim the 10
28	28	subtraction to file a certain statement on or before a certain date; authorizing the 11
29	29	Comptroller to review and alter the amount of the subtraction specified in the 12
30	30	statement or claimed on certain tax returns; and generally relating to a subtraction 13
31	31	modification under the Maryland corporate income tax for certain changes to a 14
32	32	certain corporation’s deferred tax assets or liabilities. 15
33	33
34	34	BY adding to 16
35	35	Article – Tax – General 17
36	36	Section 10–311 18
37	37	Annotated Code of Maryland 19
38	38	(2016 Replacement Volume and 2021 Supplement) 20
39	39
40	40	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
41	41	That the Laws of Maryland read as follows: 22
42	42
43	43	Article – Tax – General 23
44	44
45	45	10–311. 24
46	46	2 HOUSE BILL 321
47	47
48	48
49	49	(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
50	50	INDICATED. 2
51	51
52	52	(2) “NET DEFERRED TAX ASSE T” MEANS THE AMOUNT BY WHICH THE 3
53	53	DEFERRED TAX ASSETS EXCEED THE DEFERRED TAX LIABILI TIES OF A TAXPAYER , 4
54	54	COMPUTED IN ACCORDAN CE WITH GENERALLY AC CEPTED ACCOUNTING 5
55	55	PRINCIPLES. 6
56	56
57	57	(3) “NET DEFERRED TAX LIAB ILITY” MEANS THE AMOUNT BY WHICH 7
58	58	THE DEFERRED TAX LAB ILITIES EXCEED THE D EFERRED TAX ASSETS O F A 8
59	59	TAXPAYER, COMPUTED I N ACCORDANCE WITH GE NERALLY ACCEPTED ACC OUNTING 9
60	60	PRINCIPLES. 10
61	61
62	62	(B) THIS SECTION APPLIES TO A CORPORATION THA T, ON OR BEFORE APRIL 11
63	63	24, 2018, THE DATE OF ENACTMEN T OF THE PROVISIONS OF § 10–402 OF THIS TITLE 12
64	64	BY CHAPTERS 341 AND 342 OF THE ACTS OF THE GENERAL ASSEMBLY OF 2018, 13
65	65	WAS: 14
66	66
67	67	(1) PUBLICLY TRADED ; OR 15
68	68
69	69	(2) AFFILIATED WITH A CO RPORATION THAT WAS P UBLICLY TRADED 16
70	70	AND PARTICIPATED IN THE FILING OF THE PU BLICLY TRADED CORPOR ATION’S 17
71	71	FINANCIAL STATEMENTS PREPARED IN ACCORDAN CE WITH GENERALLY AC CEPTED 18
72	72	ACCOUNTING PRINCIPLES. 19
73	73
74	74	(C) (1) IN ADDITION TO THE MO DIFICATIONS UNDER §§ 10–307 AND 20
75	75	10–308 OF THIS SUBTITLE, THE AMOUNTS DETERMIN ED UNDER SUBSECTION (D) OF 21
76	76	THIS SECTION ARE SUB TRACTED FROM THE FED ERAL TAXABLE INCOME OF A 22
77	77	CORPORATION TO DETER MINE MARYLAND MODIFI ED INCOME OF THE 23
78	78	CORPORATION IF , AS OF APRIL 24, 2018, THE DATE OF ENACTMEN T OF THE 24
79	79	PROVISIONS OF § 10–402 OF THIS TITLE BY CHAPTERS 341 AND 342 OF THE ACTS 25
80	80	OF THE GENERAL ASSEMBLY OF 2018, THE ENACTMENT RESULT ED IN AN 26
81	81	AGGREGATE : 27
82	82
83	83	(I) INCREASE TO THE CORPORATION ’S NET DEFERRED TAX 28
84	84	LIABILITY; 29
85	85
86	86	(II) DECREASE TO THE CORP ORATION’S NET DEFERRED TAX 30
87	87	ASSET; OR 31
88	88
89	89	(III) CHANGE FROM A NET DE FERRED TAX ASSET TO A NET 32
90	90	DEFERRED TAX LIABILI TY. 33
91	91	HOUSE BILL 321 3
92	92
93	93
94	94	(2) THE AMOUNT OF ANY INC REASE, DECREASE, OR CHANGE SHALL 1
95	95	BE DETERMINED WITHOUT REGAR D TO THE SUBTRACTION AUTHORIZED UNDER 2
96	96	THIS SECTION. 3
97	97
98	98	(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 4
99	99	SUBTRACTION AUTHORIZ ED UNDER THIS SECTIO N IS EQUAL TO ONE–TENTH OF THE 5
100	100	AMOUNT NECESSARY TO OFFSET THE AGGREGATE : 6
101	101
102	102	(I) INCREASE TO THE CORPORAT ION’S NET DEFERRED TAX 7
103	103	LIABILITY; 8
104	104
105	105	(II) DECREASE TO THE CORP ORATION’S NET DEFERRED TAX 9
106	106	ASSET; OR 10
107	107
108	108	(III) CHANGE FROM A NET DE FERRED TAX ASSET TO A NET 11
109	109	DEFERRED TAX LIABILI TY. 12
110	110
111	111	(2) THE SUBTRACTION AUTHO RIZED UNDER THIS SEC TION MAY BE 13
112	112	USED TO REDUCE THE C ORPORATION ’S MARYLAND MODIFIED INC OME FOR 10 14
113	113	CONSECUTIVE TAXABLE YEARS BEGINNING WITH THE FIRST TAXABLE YE AR THAT 15
114	114	BEGINS AFTER DECEMBER 31, 2031. 16
115	115
116	116	(3) THE SUBTRACTION CALCU LATED UNDER THIS SEC TION MAY NOT 17
117	117	BE REDUCED AS A RESU LT OF ANY EVENT THAT OCCUR S AFTER THE CALCULAT ION, 18
118	118	INCLUDING THE DISPOS ITION OR ABANDONMENT OF ANY ASSET. 19
119	119
120	120	(4) THE SUBTRACTION AUTHO RIZED UNDER THIS SEC TION: 20
121	121
122	122	(I) SHALL BE CALCULATED WITHOUT REGARD TO TH E FEDERAL 21
123	123	TAX EFFECT; AND 22
124	124
125	125	(II) MAY NOT ALTER THE TAX BASIS OF ANY ASS ET. 23
126	126
127	127	(5) IF THE SUBTRACTION DE TERMINED UNDER THIS SECTION 24
128	128	RESULTS IN A SUBTRAC TION THAT EXCEEDS MARYLAND MODIFIED INC OME 25
129	129	COMPUTED WITHOUT REG ARD TO THE SUBTRACTI ON UNDER THIS SECTIO N, THE 26
130	130	AMOUNT OF THE EXCESS MAY BE CARRIED FORWA RD TO SUCCEEDING TAXABLE 27
131	131	YEARS AND USED TO RE DUCE MARYLAND MODIFIED INC OME IN EACH SUCCEEDI NG 28
132	132	TAXABLE YEAR UNTIL T HE EXCESS IS FULLY U SED. 29
133	133
134	134	(E) (1) ON OR BEFORE JULY 1, 2023, A CORPORATION THAT I NTENDS TO 30
135	135	CLAIM A SUBTRACTION UNDER THIS SECTION S HALL FILE WITH THE COMPTROLLER 31
136	136	A STATEMENT THAT SPE CIFIES THE TOTAL AMO UNT OF THE SUBTRACTI ON THAT 32
137	137	THE CORPORATION INTE NDS TO CLAIM. 33 4 HOUSE BILL 321
138	138
139	139
140	140
141	141	(2) THE STATEMENT SHALL B E ON THE FORM AND CO NTAIN THE 1
142	142	INFORMATION THE COMPTROLLER REQUIRES . 2
143	143
144	144	(3) THE COMPTROLLER MAY REVIE W AND ALTER THE AMOUNT OF : 3
145	145
146	146	(I) THE SUBTRACTION SPEC IFIED IN THE STATEME NT 4
147	147	REQUIRED UNDER PARAG RAPH (1) OF THIS SUBSECTION ; OR 5
148	148
149	149	(II) THE SUBTRACTION CLAI MED ON A TAX RETURN FOR ANY 6
150	150	TAXABLE YEAR . 7
151	151
152	152	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
153	153	1, 2022. 9
154	154
155	155
156	156