Income Tax - Subtraction Modification - Retirement Income

HB 355 modifies Maryland's income tax deduction for retirement income, allowing eligible residents to subtract a larger portion of their retirement earnings from taxable income over time. Starting in 2025, residents aged 65+ or disabled (or whose spouse is disabled), or retired forest/park/rangers meeting specific criteria, can deduct 30% of retirement income in 2025-2026, rising to 60% in 2026-2027, and 100% after 2026. The bill expands the definition of "qualified retirement plan" to include IRAs and Roth accounts (previously excluded), while clarifying that certain income types (like Social Security) cannot be double-counted for this deduction. This change takes effect for tax years beginning after December 31, 2024, with full 100% deduction applicable after 2026.