EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0333*
SENATE BILL 333
Q3 2lr2138
SB 900/21 – B&T CF 2lr1631
By: Senator Young
Introduced and read first time: January 20, 2022
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Subtraction Modification – Expenses of Medical Cannabis Grower, 2
Processor, Dispensary, or Independent Testing Laboratory 3
FOR the purpose of allowing a subtraction modification under the Maryland income tax for 4
certain expenses paid or incurred during the taxable year in carrying on a trade or 5
business as a certain medical cannabis grower, processor, dispensary, or 6
independent testing laboratory; and generally relating to an income tax subtraction 7
modification for certain expenses of medical cannabis growers, processors, 8
dispensaries, or independent testing laboratories. 9
BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 10–208(a) and 10–308(a) 12
Annotated Code of Maryland 13
(2016 Replacement Volume and 2021 Supplement) 14
BY adding to 15
Article – Tax – General 16
Section 10–208(bb) 17
Annotated Code of Maryland 18
(2016 Replacement Volume and 2021 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Tax – General 21
Section 10–308(b) 22
Annotated Code of Maryland 23
(2016 Replacement Volume and 2021 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26
2 SENATE BILL 333
Article – Tax – General 1
10–208. 2
(a) In addition to the modification under § 10–207 of this subtitle, the amounts 3
under this section are subtracted from the federal adjusted gross income of a resident to 4
determine Maryland adjusted gross income. 5
(BB) (1) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION 6
INCLUDES THE AMOUNT OF ORDINARY AND NECE SSARY EXPENSES PAID OR 7
INCURRED DURING THE TAXABLE YEAR IN CARR YING ON A TRADE OR A BUSINESS AS 8
A MEDICAL CANNABIS G ROWER, PROCESSOR, OR DISPENSARY LICENS ED UNDER 9
TITLE 13, SUBTITLE 33 OF THE HEALTH – GENERAL ARTICLE OR AN INDEPENDENT 10
TESTING LABORATORY R EGISTERED IN ACCORDA NCE WITH § 13–3311 OF THE 11
HEALTH – GENERAL ARTICLE IF THE DEDUCT ION FOR ORDINARY AND NECESSARY 12
EXPENSES IS DISALLOW ED UNDER § 280E OF THE INTERNAL REVENUE CODE. 13
(2) THE SUBTRACTION ALLOW ED UNDER PARAGRAPH (1) OF THIS 14
SUBSECTION INCLUDES A REASONABLE ALLOWAN CE FOR SALARIES OR O THER 15
COMPENSATION FOR PER SONAL SERVICES ACTUA LLY RENDERED DURING THE 16
TAXABLE YEAR . 17
10–308. 18
(a) In addition to the modification under § 10–307 of this subtitle, the amounts 19
under this section are subtracted from the federal taxable income of a corporation to 20
determine Maryland modified income. 21
(b) The subtraction under subsection (a) of this section includes the amounts 22
allowed to be subtracted for an individual under: 23
(1) § 10–208(d) of this title (Enhanced agricultural management equipment 24
expenses); 25
(2) § 10–208(i) of this title (Reforestation or timber stand expenses); 26
(3) § 10–208(k) of this title (Wage expenses for targeted jobs); 27
(4) § 10–208(p) of this title (Elevator handrails in health care facilities); 28
[and] 29
(5) § 10–208(z) of this title (Donations to diaper banks and other charitable 30
entities); AND 31
(6) § 10–208(BB) OF THIS TITLE (TRADE OR BUSINESS EXP ENSES OF 32 SENATE BILL 333 3
MEDICAL CANNABIS GRO WER, PROCESSOR, DISPENSARY, OR INDEPENDENT 1
TESTING LABORATORY ). 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 4