Md. Code, Tax - General § 10-703.2
This is the official text of Md. Code, Tax - General § 10-703.2, part of Maryland’s Code, Tax - General — governs state taxation.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§10–703.
Official statutory text
§10–703.2.
(a) In this section, “installment sale” has the meaning stated in § 453(b) of the Internal Revenue Code.
(b) A credit against the State income tax in the amount determined under subsection (c) of this section may be claimed by a resident who recognizes income for the current taxable year for federal income tax purposes from an installment sale of property located in a state other than Maryland if:
(1) the disposition of the property occurred in an earlier taxable year; and
(2) the taxpayer paid state tax on income for the earlier taxable year to the state where the property was located on the income that for federal income tax purposes is recognized in the current taxable year.
(c) The amount of the credit allowed under this section is equal to the income recognized for federal income tax purposes for the current year on which state income tax was paid to another state in an earlier year, as described in subsection (b)(2) of this section, multiplied by the lesser of:
(1) the rate of tax imposed by the other state on the income described in subsection (b)(2) of this section; or
(2) the maximum rate of Maryland State income tax.
(a) In this section, “installment sale” has the meaning stated in § 453(b) of the Internal Revenue Code.
(b) A credit against the State income tax in the amount determined under subsection (c) of this section may be claimed by a resident who recognizes income for the current taxable year for federal income tax purposes from an installment sale of property located in a state other than Maryland if:
(1) the disposition of the property occurred in an earlier taxable year; and
(2) the taxpayer paid state tax on income for the earlier taxable year to the state where the property was located on the income that for federal income tax purposes is recognized in the current taxable year.
(c) The amount of the credit allowed under this section is equal to the income recognized for federal income tax purposes for the current year on which state income tax was paid to another state in an earlier year, as described in subsection (b)(2) of this section, multiplied by the lesser of:
(1) the rate of tax imposed by the other state on the income described in subsection (b)(2) of this section; or
(2) the maximum rate of Maryland State income tax.
Status: in_force · Read it on the official government site
Need a lawyer in Maryland?
Find a Maryland lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.