Budget & Taxes (Income Tax)

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

HB 926: Income Tax – Individual Itemized Deductions – Alterations

HB 926 modifies Maryland's income tax code to adjust how itemized deductions are calculated for certain taxpayers. It requires individuals who itemize deductions to further reduce their Maryland itemized deductions by either the amount of real property taxes paid (capped at $10,000) or $10,000, for tax years 2025 through 2029. This applies to Maryland taxpayers who claim federal itemized deductions, including homeowners who deduct property taxes. The bill also maintains a separate phase-out for high-income earners (exceeding $100,000 single/$200,000 married) where deductions are reduced by 7.5% of the excess AGI. The changes take effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesLimits property tax deductions to $10k cap, increasing state tax revenue by reducing available deductions for high-value homeowners.95% confidence

Sub-Topics Income Tax

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signed · Maryland · Senate May 26, 2026

SB 805: Income Tax - Student Loan Debt Relief Tax Credit - Alterations

SB 805 modifies Maryland's Student Loan Debt Relief Tax Credit program. It changes the recapture rule so individuals only repay the *unused portion* of the credit (not the full amount) if they don't use it for student loan payments within 3 years. The bill also authorizes the Maryland Higher Education Commission to extend the repayment deadline for eligible individuals facing specific delays, such as litigation over federal student loan plans or government processing issues. This directly affects Maryland residents who claimed the credit for undergraduate or graduate student loan debt and must now use it within a flexible timeframe. The bill does not alter credit limits ($9 million for 2025, $18 million annually after) or priority rules for state employees.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies tax credit recapture to reduce repayment burden, expanding access to student loan debt relief and strengthening tax relief for eligible residents.90% confidence ✓ EducationSupports EducationModifies tax credit to reduce repayment burden for student loan relief, enhancing higher education access and affordability for eligible individuals.92% confidence

Sub-Topics Income Tax Tax Credits Higher Education Student Financial Aid

in committee · Maryland · Senate Mar 5, 2026

SB 987: Corporate Income Tax - Addition Modification - Direct-to-Consumer Pharmaceutical Advertising

SB 987 modifies Maryland's corporate income tax to allow pharmaceutical companies to deduct certain direct-to-consumer advertising expenses for covered drugs. It directly affects pharmaceutical manufacturers that advertise prescription drugs directly to the public via TV, radio, social media, or digital platforms (excluding journal ads). The bill creates a new tax deduction for these advertising costs, with revenue from this modification distributed as follows: the first $5 million annually to Medicaid eligibility operations, and remaining funds to health insurance subsidy programs. This change aligns Maryland's tax treatment with federal rules while directing revenue toward health coverage affordability.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates new corporate tax deduction, reducing state revenue by allowing pharmaceutical companies to deduct advertising costs, weakening fiscal management.85% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Maryland · House of Delegates Feb 17, 2026

HB 1510: Unemployment Insurance - Fraud Prevention, Detection, and Enforcement

HB 1510 requires unemployment insurance claimants in Maryland to use two-step verification (like a password plus a code) when accessing online claim services to prevent fraud. It mandates the Department of Labor to review claims with suspicious patterns - such as identical bank account details used across multiple claims - and refer suspected fraud cases to law enforcement. The bill also authorizes the Department to recover overpaid benefits by withholding from state income tax refunds and increases penalties for fraud, including extending disqualification periods for claimants found to have committed fraud.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents fraud in unemployment benefits by recovering overpayments via tax refund withholdings, strengthening fiscal management and protecting state budget resources.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentPrevents fraud in unemployment claims, ensuring legitimate beneficiaries receive benefits and protecting the integrity of the unemployment insurance system.95% confidence ✓ TechnologySupports TechnologyMandates two-step verification and fraud pattern analysis for cybersecurity, directly enhancing digital security in unemployment systems per bill text.95% confidence

Sub-Topics Income Tax Unemployment

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

HB 801: Income Tax - Addition Modifications - Business Stock Gains, Fines, Penalties, and Bonus Depreciation

HB 801 modifies Maryland's income tax rules by requiring taxpayers to add back certain amounts excluded from federal income tax. Specifically, it adds back gains from qualified small business stock sales (excluded under federal law) and fines/penalties exceeding $50,000 that were deducted as business expenses (excluding taxes paid for violations). The bill also adjusts depreciation calculations for businesses, particularly removing special treatment for manufacturing entities placing property in service after 2018. These changes directly affect Maryland businesses and individuals with qualifying stock sales, significant compliance costs, or specific depreciation deductions.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses business tax loopholes by requiring add-back of excluded gains/deductions, increasing state tax revenue and strengthening fiscal management.90% confidence

Sub-Topics Income Tax

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signed · Maryland · Senate Apr 28, 2026

SB 519: Earned Income Tax Credit - Assistance Program Implementation Delay and Study

SB 519 delays Maryland's Earned Income Tax Credit Assistance Program implementation until 2029, instead of 2024. It requires the Comptroller's Office to study outreach efforts by December 31, 2030, to help low-income residents claim the credit they qualify for but often miss. The bill also directs the Department of Service and Civic Innovation to recommend ways to assist low-income residents in claiming tax credits. This legislation postpones the program's start date while mandating studies to improve future outreach and participation.

Topics ✗ Budget & TaxesOpposes Budget & TaxesDelays EITC implementation until 2029, restricting immediate tax relief for low-income residents instead of advancing the credit program.85% confidence

Sub-Topics Audits & Accountability Income Tax Tax Credits

passed both · Maryland · Senate Apr 13, 2026

SB 961: Income Tax Credit - Venison Donation - Alterations

SB 961 modifies Maryland's tax credit for hunters donating processed deer meat. It removes the previous $300 annual limit on the credit, allowing hunters to claim the full credit for eligible expenses without the cap. The bill maintains a $75 per deer processing expense limit and requires donations to go to IRS 501(c)(3) organizations. Hunters must still comply with hunting laws, and donation programs must report donor information to the Comptroller annually. The change takes effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves $300 annual cap on venison donation tax credit, expanding tax relief for hunters. Directly strengthens tax credit provisions per Budget & Taxes indicators.95% confidence

Sub-Topics Audits & Accountability Income Tax Tax Credits

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in committee · Maryland · Senate Feb 14, 2026

SB 973: Income Tax - Credit for Long-Term Care Premiums

SB 973 adjusts Maryland's income tax credit for long-term care insurance premiums. It reduces the maximum annual credit from $500 to $250 per person for Maryland residents aged 45 or older who pay premiums for qualifying long-term care insurance covering themselves or eligible family members. The bill restricts claims if the insured individual was covered before January 1, 2027, or if the credit was previously claimed for that person. These changes take effect for tax years beginning after December 31, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesReduces tax credit amount, restricting tax breaks for long-term care insurance premiums90% confidence ✗ HealthcareOpposes HealthcareReduces tax credit for long-term care insurance from $500 to $250, weakening financial support for coverage and limiting access to long-term care services.85% confidence

Sub-Topics Income Tax Tax Credits Long-Term Care

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

HB 745: Income Tax - Senior Tax Credit - Refundability

HB 745 makes Maryland's senior income tax credit refundable, allowing eligible residents aged 65 or older to receive a cash refund if the credit exceeds their state tax liability. The credit applies to single seniors with federal adjusted gross income under $100,000 ($1,000 credit) and married couples filing jointly with income under $150,000 ($1,750 credit, or $1,000 if only one spouse qualifies). In specific fiscal years when state revenue estimates fall more than 3.75% below projections, the credit amount is reduced to $500 for singles ($50,000-$100,000 income) or $875 for married couples ($100,000-$150,000 income). This change ensures seniors receive the full credit amount as a refund rather than losing unused portions under previous non-refundable rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesMakes senior tax credit refundable, providing tax relief for lower-income seniors (under $100k/$150k AGI), aligning with tax relief indicators for middle/lower income.92% confidence

Sub-Topics Income Tax Revenue Tax Credits Tags Seniors

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

HB 930: Income Tax – Decoupling From Federal Changes – Education Expenses

HB 930 modifies Maryland’s income tax code to decouple from federal changes affecting education expenses. It prohibits the Governor from joining a federal tax credit program for elementary/secondary education scholarships and adjusts how employer contributions to education accounts (like Maryland’s Prepaid College Trust or College Investment Plans) are treated. Specifically, it adds tax on unused distributions from these accounts if not used for qualified education expenses, while excluding contributions and qualified distributions from taxable income. This directly affects Maryland residents using these education savings accounts and ensures state tax rules differ from federal law.

Topics ✗ Budget & TaxesOpposes Budget & TaxesAdds tax on unused education account distributions, increasing tax burden and restricting tax relief for education expenses.90% confidence ✗ EducationOpposes EducationBlocks federal education tax credits for scholarships and taxes unused education savings, restricting access to education funding mechanisms.95% confidence

Sub-Topics Income Tax Tax Credits Higher Education

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