Case Conclusion Date:January 12, 2006
Description:TAX CREDIT â€“ SECTION 10-703(a) DOES NOT APPLY TO LOCAL INCOME TAX. The Circuit Court for Baltimore County erred in its interpretation of Section 10-703(a) of the Tax-General Article. The Maryland Tax Court was correct in affirming the Comptrollerâ€™s decision that the tax credit against State income taxes applied exclusiv ely to reduce State income taxes. We hold that the tax credit may be applied only to reduce the amount of a Maryland residentâ€™s State income tax liability and that the credit, pursuant to Section 10-703(a), does not reduce the amount owed by a Maryland resident for local income tax.