§ 10–403
Statutes in effect as of October 1, 2026.
Md. Code Ann., Tax-Gen. § 10-403 (2026)
Title 10. Income Tax
Subtitle 4. Special Treatment of Income
§ 10–403LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
(i)
“Financial institution” means:
(1)
a credit company;
(2)
except as provided in subparagraph (ii)1 of this paragraph, a finance company;
(3)
an international banking facility;
(4)
a loan company;
(5)
a mortgage company;
(6)
a safe-deposit company; and
(7)
a savings and loan association.
(ii)
“Financial institution” does not include:
(1)
a finance company that makes loans only to farmers for agricultural purposes;
(2)
a company licensed under the federal Small Business Investment Act of 1958;
(3)
a corporation that elects to be taxed as a small business corporation under Subchapter S of the Internal Revenue Code;
(4)
an entity that is a real estate mortgage investment conduit as defined in the Internal Revenue Code;
(5)
a limited liability company; or
(6)
a commercial bank, savings bank, trust company, or company that substantially competes with national banks in the State.
(3)
“Financial institution holding company” means a financial institution whose only activities are:
(i)
the maintenance and management of intangible investments; and
(ii)
the collection and distribution of income from intangible investments.
(b)
Notwithstanding § 10-402 of this subtitle, interest received by a financial institution holding company from one of its subsidiary corporations that is a financial institution shall be allocated to this State only to the extent that the interest is derived from the trade or business of the subsidiary corporation within this State.