# Tax - General (GTG)

## Title 10. Income Tax

### Subtitle 4. Special Treatment of Income

#### Section 10-403

(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 Sec. 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.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)