{"data":{"id":"us-md/md.-code-tax-general-8-204","jurisdiction":"us-md","citation":"Md. Code, Tax - General § 8–204","heading":"","body":"(a) A financial institution shall compute its net earnings:\n(1) based on the accounting period used as its fiscal year; and\n(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.\n(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:\n(1) profit realized from the sale or exchange of bonds issued by this State or a political subdivision of this State;\n(2) dividends received from foreign corporations and included in federal gross income under § 78 of the Internal Revenue Code;\n(3) interest derived from a United States obligation;\n(4) State tax–exempt interest received from a mutual fund and allowed to be subtracted under § 10–307(g)(4) of this article; and\n(5) interest excluded from federal gross income under § 103 of the Internal Revenue Code and derived from a bond:\n(i) issued by a state or a public corporation, special district, or political subdivision of a state or their instrumentalities; or\n(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.\n(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.","path":["Article - Tax - General"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg\u0026section=8-204","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T20:01:18Z","sha256":"a4242b4bb4091ad783e1a044ef726539d56a1de8a89cede8e9988231f5a97e6d","source_id":"us-md","stale":false,"prev":"us-md/md.-code-tax-general-8-203","next":"us-md/md.-code-tax-general-8-205"},"notice":"GroundRules: Original legal text. Not legal advice."}