Budget & Taxes

signed · Maryland · Senate May 26, 2026

SB 607: Income Tax - Subtraction Modification for Public Safety Retirement Income - Amount

SB 607 increases the Maryland income tax deduction for retirement income received by retired public safety employees. It phases in higher deduction amounts over time: starting at $15,000 for 2025-2025 tax years, rising to $20,000 by 2030. The bill specifically affects retired correctional officers, law enforcement officers, firefighters, emergency medical personnel, and paramedics who meet the eligibility criteria (age 55+ and retired from qualifying public safety roles). The change takes effect July 1, 2026, and is implemented through incremental annual increases in the deductible amount.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for public safety retirees, providing direct tax relief to middle-income retirees, aligning with support indicators for Budget & Taxes.95% confidence

Sub-Topics Income Tax Tags Public Safety

in committee · Maryland · House of Delegates Feb 16, 2026

HB 1189: Property and Casualty Insurance - Distribution of Premium Tax Proceeds to State Disaster Recovery Fund

HB 1189 requires property and casualty insurance companies in Maryland to redirect $5 million annually from their existing tax payments to the State Disaster Recovery Fund, starting July 1, 2026. This policy change applies directly to insurers who pay the tax and benefits the Disaster Recovery Fund, which supports disaster response and recovery efforts. The bill amends Maryland law to mandate this specific annual transfer without creating new taxes or altering existing insurance regulations. It takes effect on July 1, 2026, as specified in the legislation.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects existing insurance tax proceeds ($5M/year) to fund disaster recovery, strengthening public service financing without new taxes.90% confidence

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in committee · Maryland · House of Delegates Feb 10, 2026

HB 1035: Income Tax - Subtraction Modification - Overtime Compensation

HB 1035 modifies Maryland's income tax code to allow residents to subtract certain overtime pay from their taxable income, aligning with federal tax rules. It directly affects Maryland taxpayers who earn "qualified overtime compensation" as defined under Section 225 of the federal Internal Revenue Code. The bill adds a new provision (Section 10-208(dd)) specifying that qualifying overtime pay - already deductible under federal law - can be subtracted when calculating Maryland adjusted gross income. The change applies to taxable years beginning after December 31, 2025, and expires June 30, 2029. This is a temporary policy adjustment, not a permanent tax rate change.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows tax deduction for overtime pay, reducing taxable income for residents and aligning with federal rules, providing direct tax relief per bill's modification of income tax code.95% confidence

Sub-Topics Income Tax

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in committee · Maryland · House of Delegates Feb 12, 2026

HB 1273: Maryland Homeowner Protection and Homestead Tax Credit Portability Act of 2026

HB 1273 (Maryland Homeowner Protection and Homestead Tax Credit Portability Act of 2026) modifies Maryland's homestead tax credit system by reducing the maximum credit percentage from 110% to 105% for state and bicounty property taxes. It creates a new "homestead credit portability" feature allowing homeowners who move to a new residence to carry forward a portion of their previous home's tax credit. The portability adjustment calculates a credit based on the difference in taxable assessments between the previous and new dwelling, capped at $500,000 of the new property's assessment. This bill directly affects homeowners who relocate within Maryland and change their primary residence.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill reduces homestead tax credit max from 110% to 105%, decreasing tax relief for homeowners. This increases property tax burden for middle/lower income residents, aligning with 'oppose' indicators of weakening tax relief.90% confidence

Sub-Topics Property Tax Tax Credits

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in committee · Maryland · House of Delegates Mar 3, 2026

HB 1314: Natural Resources - Chesapeake Bay Trust - Urban Trees Program

HB 1314 makes permanent an annual $10 million state funding requirement for Maryland's Urban Trees Program, administered by the Chesapeake Bay Trust. The program plants native trees in underserved areas - defined as historically redlined neighborhoods or communities with high unemployment, poverty, or housing challenges - to improve environmental health. Qualified organizations (like nonprofits, schools, or local governments) can apply for grants to implement tree-planting projects, with priority given to initiatives led by or engaging residents in those target areas. The bill also requires the Trust to report annually on funded projects, including locations and tree counts, to state environmental agencies. This ensures consistent, community-focused tree planting as a permanent part of state environmental policy.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates permanent $10M annual state funding for urban tree-planting program, directly advancing fiscal allocation for environmental initiatives.95% confidence ✓ EnvironmentSupports EnvironmentFunds permanent $10M annual program planting native trees in underserved areas to improve environmental health through conservation and pollution control.95% confidence

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in committee · Maryland · House of Delegates Feb 5, 2026

HB 761: Income Tax - Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act)

HB 761 modifies Maryland's income tax code to increase the tax break for military retirees. It removes the age requirement for the full tax deduction on military retirement income, raising the deduction from $12,500 (under 55) or $20,000 (55+) to $25,000 for 2026-2026 and $40,000 starting in 2027. This directly affects Maryland residents who receive military retirement income from active or reserve service, including death benefits. The bill amends Section 10-207(q) of Maryland’s tax code to apply the higher deduction regardless of the retiree’s age. The change takes effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for military retirees, providing tax relief under Maryland's income tax code by raising deduction amounts.95% confidence ✓ VeteransSupports VeteransIncreases tax deduction for military retirees from $12.5K/$20K to $25K/$40K, expanding financial benefits for veterans95% confidence

Sub-Topics Income Tax Tax Incentives National Guard & Reserve

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passed · Maryland · House of Delegates Mar 26, 2026

HB 1059: State Department of Education - Asian American History - Accurate Instruction

HB 1059 requires Maryland's State Department of Education to evaluate specific Asian American history training programs from seven approved organizations (including the Smithsonian and Asian American Education Project) for inclusion in its teacher professional development program. It creates a grant program providing up to $2,000 per teacher to cover costs for these trainings and up to $1,000 annually per school library to purchase age-appropriate books and resources on Asian American and Pacific Islander history. The bill mandates annual state funding of $500,000 starting in fiscal year 2028 to support these grants. The bill directly affects Maryland public school educators and school libraries by expanding access to culturally specific professional development and learning materials.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates grant program allocating state funds for teacher training and library resources, directly funding educational programs within budget framework.95% confidence ✓ EducationSupports EducationBill allocates grants for teacher training and library resources on Asian American history, directly enhancing curriculum content and educator support in K-12 education.90% confidence

Sub-Topics Libraries Teachers

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died · Maryland · Senate Mar 2, 2026

SB 923: Solar Photovoltaic Modules, Energy Storage, and Zero-Emission Vehicles - Advisory Councils, Checkoff Programs, and Funds

SB 923 creates three new state funds to promote solar photovoltaic modules, energy storage systems, and zero-emission vehicles in Maryland. Each fund will be financed through a fee-based marketing program (a "checkoff" where industry participants pay small contributions) to support statewide promotion efforts. The funds are permanent (nonlapsing) and will retain all interest earnings instead of transferring them to the state general fund. Advisory councils, made up of industry representatives and state officials, will manage the funds and guide marketing initiatives for these technologies.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates permanent funds via industry checkoff fees, establishing dedicated revenue for clean energy programs without general tax impact. Funds retain interest earnings instead of transferring to general fund.85% confidence ✓ EnergySupports EnergyBill creates permanent state funds financed by industry checkoffs to promote solar, energy storage, and zero-emission vehicles through statewide marketing efforts.95% confidence

Sub-Topics State Budget Energy Storage Solar

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died · Maryland · House of Delegates Mar 9, 2026

HB 1307: State Finance and Procurement - Employers Receiving State Public Funds - Unfair Labor Practices

HB 1307 requires employers receiving $250,000 or more in state public funds under a single contract to agree they will not engage in unfair labor practices defined under federal law (29 U.S.C. §158) and acknowledge that violations may result in the state recapturing those funds. It directly affects large state contractors by linking funding eligibility to compliance with federal labor protections under the National Labor Relations Act. The bill authorizes the state to recapture funds for up to two years after disbursement if violations occur, and allows employees to file complaints with the Attorney General, who must investigate and may sue for damages including full fund recovery. The law takes effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill promotes fiscal responsibility by recapturing misused state funds for labor violations, aligning with fiscal management under Budget & Taxes.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill mandates compliance with federal labor protections (29 U.S.C. §158) for state contractors, linking funding eligibility to adherence and enabling fund recapture for violations, directly strengthening worker rights enforcement.95% confidence

Sub-Topics Procurement Collective Bargaining Labor Standards

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passed · Maryland · House of Delegates Apr 13, 2026

HB 1297: Income Tax - Student Loan Debt Relief Tax Credit - Alterations

HB 1297 modifies Maryland's student loan debt relief tax credit by changing how unused credit amounts are recaptured. It requires taxpayers to repay only the unused portion of the credit (not the full amount) if they don't use it for student loan repayment within 3 years. The bill also authorizes the Maryland Higher Education Commission to grant extensions of this 3-year period for taxpayers unable to repay due to specific federal delays, such as litigation over the SAVE repayment plan, Department of Education understaffing, or waiting for public service loan forgiveness. This directly affects Maryland residents with qualifying student loan debt who claim the tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax credit to reduce repayment burden on unused portions, providing targeted tax relief for student loan borrowers92% confidence ✓ EducationSupports EducationModifies student loan tax credit to reduce recapture burden and allow extensions, supporting higher education affordability and access for borrowers.90% confidence

Sub-Topics Income Tax Tax Credits Student Financial Aid

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