§ 8–204
Statutes in effect as of October 1, 2026.
Md. Code Ann., Tax-Gen. § 8-204 (2026)
Title 8. Franchise Taxes
Subtitle 2. Financial Institution Franchise Tax
§ 8–204LinkCopy Citation
(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.
(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, or 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.
(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.