Budget & Taxes

SB 455 establishes the Transformational Project Financing Program to help local governments fund large-scale development projects in designated areas. It allows counties or cities to apply to the Maryland Economic Development Corporation for "State-supported development district" status, requiring them to redirect property tax increases (tax increment) from these areas into a special fund instead of the general budget. This fund finances projects in priority areas like sustainable communities, transit-oriented developments, and designated enterprise zones. The bill creates new rules for calculating state revenue contributions and managing bond proceeds specifically for these designated districts.

SB 25 creates the "Buy Maryland Cybersecurity Tax Credit," allowing Maryland businesses to claim a 50% tax credit (up to $50,000 annually) for purchasing cybersecurity technology or services from Maryland-based cybersecurity companies meeting specific criteria. The credit is refundable (businesses can get cash if the credit exceeds taxes owed) and requires sellers to be Maryland-headquartered, small businesses (under $10 million revenue), and/or owned by minorities, women, veterans, or located in designated business zones. It limits total credits per seller to $1 million annually and ends all new credits after 2030. This directly affects Maryland businesses buying cybersecurity and qualifying Maryland cybersecurity firms.

SB 9 establishes an annual tax-free day on November 11 (Veterans Day) in Maryland starting in 2026. It exempts sales tax on items costing less than $2,000 purchased by veterans, provided they show valid ID (like a driver's license or government ID) indicating veteran status. The Comptroller may suspend this tax-free day at their sole discretion. The law takes effect July 1, 2026, directly benefiting eligible veterans making qualifying purchases.

SB 356 creates a $1,000 refundable state income tax credit for Maryland parents who experience a stillbirth, as documented by a certified birth certificate or fetal death certificate issued under Maryland law or equivalent from another state. The credit can be claimed in the tax year the stillbirth occurred, and if it exceeds the parent's state income tax liability, they receive a cash refund for the difference. This policy directly affects eligible Maryland parents of stillborn children, providing financial relief tied to the year of the stillbirth. The credit applies to all taxable years beginning after December 31, 2026, and takes effect July 1, 2026.