Income Tax - Subtraction Modification - Maryland 529 Plan Contributions

SB 412 increases the state income tax deduction for contributions to Maryland's 529 college savings plans. For taxable years beginning after December 31, 2025, the annual deduction limit rises from $2,500 to $4,850 per beneficiary for contributions to the Maryland Senator Edward J. Kasemeyer Prepaid College Trust, College Investment Plan, or Broker-Dealer College Investment Plan. Unused deduction amounts can now be carried forward for up to 10 years to offset future tax liability. This change directly affects Maryland residents contributing to these specific 529 plans who claim the state tax deduction. The bill modifies existing tax code sections to implement these updated deduction limits and carryover rules.