HB 370 creates a state income tax credit for employers in Prince George’s County who provide "parental engagement leave" to qualified employees. The leave must be 10-20 hours per employee, paid at regular wage rates, and used solely for attending school-related events (e.g., parent-teacher conferences) at a public or nonpublic school in the county. Employers must obtain a certification form signed by school officials (e.g., principal and county board member) to claim the credit, which is calculated as the employee’s hourly wage multiplied by hours used, capped at $800 per employee annually. This credit directly affects PG County employers, qualified parents/guardians of school students, and school officials who verify attendance.
HB 408 allows Prince George's County to retain up to 10 cents per bag from fees that retailers charge customers for single-use or reusable carryout bags. The bill authorizes the county to keep this portion of the fee through local law, depositing it into the county’s general fund. It applies specifically to retail establishments within Prince George’s County that are already required to charge such fees. The law takes effect on July 1, 2026, and does not prevent retailers from retaining fees under their own local rules.
HB 528 modifies Maryland's income tax code to expand a $15,000 tax subtraction for retirement income from public safety jobs. It specifically adds retired fire, rescue, and emergency services personnel who worked for the District of Columbia to the list of eligible individuals, previously limited to those employed in Maryland or federal roles. The change applies to residents aged 55 or older receiving retirement income attributable to these services, effective for tax years beginning after December 31, 2025. This adjustment ensures DC-based public safety retirees working in these fields receive the same tax benefit as Maryland-based retirees.
SB 382, the "Retire in Maryland Tax Relief Act," provides a state income tax credit for Maryland residents aged 77 or older with federal adjusted gross income under $175,000 (for individuals or certain filing statuses). The credit amount increases with age: 25% of state tax for 77-year-olds, rising to 100% for those 80 or older. Married couples filing jointly must both be 77+ to qualify for the tiered credit, and unused credit amounts cannot be carried forward to future years. The bill applies to tax years beginning after December 31, 2025, and takes effect July 1, 2026.
HB 561 extends annual funding for Maryland's Child Care Credential Program, requiring the Governor to appropriate specific amounts starting in fiscal year 2026. It mandates $4 million for FY2021 (already enacted), a 10% annual increase through FY2024, and locks funding at the FY2024 level beginning in FY2028. The program directly supports child care workers pursuing staff or administrator credentials by providing achievement bonuses, training reimbursements, or vouchers. This bill establishes a fixed funding structure to sustain credentialing opportunities for early childhood educators.
HB 685 allows Anne Arundel County or its municipalities to create a property tax credit for county employees who own homes within the county. The bill authorizes local governments to set eligibility rules, credit amounts, and application procedures through their own ordinances. It directly affects Anne Arundel County employees who own qualifying dwellings, reducing their local property tax burden. The credit would apply to tax years beginning after June 30, 2026, with implementation starting June 1, 2026. The bill establishes a framework but does not specify exact credit details, leaving those to local decision-making.
HB 694 modifies Maryland's income tax calculation by excluding certain foreign earned income from the state tax addition. Specifically, it removes the requirement to include income exempt from federal tax under IRS Section 911 (for overseas workers) when calculating Maryland adjusted gross income. This change directly affects Maryland residents who work abroad and qualify for the federal foreign earned income exclusion. The bill takes effect July 1, 2026, for tax years beginning after December 31, 2025.
SB 403 exempts sales tax on in-person book fairs held at Maryland elementary and secondary schools. It applies to sales by schools, parent-teacher organizations (PTOs), or other nonprofit groups operating these events on school premises. The exemption covers sales where students, staff, or PTO members act as agents for vendors, with all net proceeds used solely for the school's educational benefit. This bill adds a new tax exemption provision (Section 11-204(b)(9)) to Maryland’s tax code, effective July 1, 2026.
HB 602 exempts first-time home buyers in Baltimore County from the county's transfer tax when purchasing improved residential property they will occupy as their primary residence. It directly affects individuals who have never owned residential property in Maryland that served as their principal residence before. To qualify, buyers (or their agents) must provide a sworn statement confirming their first-time buyer status and intent to live in the property as their primary home. The exemption takes effect July 1, 2026, and applies to property transfers meeting these specific criteria.
HB 507 extends the funding period for a grant program supporting nonprofit organizations that provide automotive repair training and reentry services to incarcerated and formerly incarcerated individuals. The bill allows the Governor to appropriate $1 million annually from fiscal years 2026 through 2029 (previously ending in 2028) for qualifying nonprofits that train at least 50 people yearly, provide nationally recognized automotive repair certificates, and achieve a 50% job placement rate for participants. These organizations must report on fund usage, participant numbers, and employment outcomes to the Governor’s Office of Crime Prevention. The extension ensures continued access to job training and employment opportunities for formerly incarcerated individuals in Maryland.
