2023 Maryland Statutes › Tax - General › Title 10 - Income Tax › Subtitle 2 - Maryland Taxable Income Calculations for Individual › Part II - Maryland Adjusted Gross Income › Section 10-210.1 - Further Modifications -- Depreciation Deduction; Net Operating Loss Deduction

(a)    (1)    In this section the following words have the meanings indicated.
(2)    “Depreciation” includes any deduction allowed under § 179 of the Internal Revenue Code.
(3)    “Heavy duty SUV” means a 4–wheeled vehicle that:
(i)    is manufactured primarily for use on public streets, roads, and highways;
(ii)    is rated at more than 6,000 but not more than 14,000 pounds gross vehicle weight; and
(iii)    would be a passenger automobile as defined in § 280F of the Internal Revenue Code if it were rated at 6,000 pounds gross vehicle weight or less.
(4)    (i)    “Manufacturing entity” means a person conducting or operating a trade or business that is primarily engaged in activities that, in accordance with the North American Industrial Classification System (NAICS), United States Manual, United States Office of Management and Budget, 2012 Edition, would be included in Sector 31, 32, or 33.
(ii)    “Manufacturing entity” does not include a refiner, as defined in § 10–101 of the Business Regulation Article.
(b)    In addition to the modifications under §§ 10–204 through 10–210 of this subtitle, to determine Maryland adjusted gross income of an individual:
(1)    (i)    except as provided in item (ii) of this item, an amount is added to or subtracted from federal adjusted gross income to reflect the determination of the depreciation deduction provided under § 167(a) of the Internal Revenue Code and the adjusted basis of property without regard to the additional allowance under § 168(k) of the Internal Revenue Code; and
(ii)    item (i) of this item does not apply to property placed in service by a manufacturing entity on or after January 1, 2019;
(2)    an amount is added to or subtracted from federal adjusted gross income to determine the net operating loss deduction allowed under § 172 of the Internal Revenue Code without regard to an election under § 172(b)(1)(H) of the Internal Revenue Code for a carryback period of up to 5 years;
(3)    (i)    except as provided in item (ii) of this item, an amount is added to or subtracted from federal adjusted gross income to reflect the determination of the maximum aggregate costs that the taxpayer may treat as an expense under § 179 of the Internal Revenue Code for any taxable year without regard to any changes made to that section after December 31, 2002:
1.    increasing above $25,000 the dollar limitation set forth in § 179(b)(1) of the Internal Revenue Code; or
2.    increasing above $200,000 the phase–out threshold set forth in § 179(b)(2) of the Internal Revenue Code; and
(ii)    item (i) of this item does not apply to property that is placed in service by a manufacturing entity on or after January 1, 2019;
(4)    an amount is added to or subtracted from federal adjusted gross income to reflect the recognition of income from discharge of indebtedness and the allowance of any deduction with respect to original issue discount without regard to § 108(i) of the Internal Revenue Code; and
(5)    an amount is added to or subtracted from federal adjusted gross income to reflect the determination of the depreciation deduction with respect to any heavy duty SUV as if the heavy duty SUV were subject to the limitations of § 280F of the Internal Revenue Code in the same manner as it would be if the vehicle were rated at 6,000 pounds gross vehicle weight or less.