Budget & Taxes (Income Tax)

signed · Maryland · House of Delegates Apr 28, 2026

HB 363: Local Government - Grant for Recipients of State Child Tax Credit - Authorization

HB 363 authorizes Maryland counties to create a local child tax credit against county income tax for low-income families with children. It allows counties to provide a $500 credit per qualified child for taxpayers with federal adjusted gross income below $15,000, reduced by $50 for every $1,000 over that threshold. To qualify, both the taxpayer and child must be residents of the county (either domiciled there or maintaining a principal residence). Counties must formally adopt the credit by July 1 prior to implementation and notify the Comptroller, but the credit is optional for counties to implement.

Topics ✓ Budget & TaxesSupports Budget & TaxesAuthorizes local child tax credit providing $500 tax relief per child for low-income families ($15k AGI threshold), directly advancing tax relief for lower-income residents.95% confidence

Sub-Topics Audits & Accountability Income Tax Tax Credits

passed · Maryland · House of Delegates Apr 13, 2026

HB 653: Income Tax - Subtraction Modification for Public Safety Retirement Income - Amount

HB 653 increases Maryland's tax deduction for retirement income earned by retired public safety employees, including correctional officers, law enforcement officers, firefighters, and emergency medical personnel. It phases in a gradual increase in the deductible amount from $15,000 to $20,000 over five years, starting with $15,000 for 2025-2026 tax years and rising by $1,000 annually until reaching $20,000 by 2029-2030. This deduction reduces taxable income for eligible retirees aged 55+ who receive retirement income tied to their public safety service. The changes take effect July 1, 2026, as part of Maryland's income tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for public safety retirees, providing targeted tax relief and reducing taxable income for eligible middle-income retirees per bill's phased deduction structure.95% confidence

Sub-Topics Income Tax

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in committee · Maryland · Senate Jan 28, 2026

SB 377: Earned Income Tax Credit - Individuals Without Qualifying Children - Eligibility

SB 377 expands Maryland's Earned Income Tax Credit (EITC) for low-income residents without qualifying children by raising the income level at which the credit begins to phase out. It directly affects eligible Maryland workers earning below the new, higher income thresholds who previously lost credit benefits too quickly. The bill establishes annual inflation adjustments starting in 2026 to keep the credit's value current, calculated using the federal cost-of-living adjustment formula. This change ensures the credit remains accessible for more low-income workers without children as living costs rise.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands EITC for low-income workers without children by raising income phase-out threshold and adding inflation adjustments, providing direct tax relief to lower-income residents.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands EITC for low-income workers without children, increasing financial support and benefits through higher income thresholds and inflation adjustments.95% confidence

Sub-Topics Income Tax Tax Credits

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

HB 707: Income Tax - Subtraction Modification - Retirement Income

HB 707 modifies Maryland's income tax rules to allow residents aged 65+ or disabled individuals (or their spouses) to subtract a larger portion of retirement income from taxable income. Starting in 2026, it increases the subtraction from 30% to 60% and eventually to 100% of retirement income from qualified plans (like 401(k)s or IRAs) for tax years beginning after 2025. It also clarifies that military or public safety retirement income already used for other tax subtractions cannot be double-counted. Special rules apply to retired forest/park/rangers, limiting the subtraction to $15,000 of their specific retirement income unless they or their spouse are disabled or over 65. The changes take effect July 1, 2026, for all applicable tax years.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief by increasing retirement income subtraction from taxable income for seniors/disabled, reducing tax burden on middle/lower income groups.95% confidence

Sub-Topics Income Tax

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passed · Maryland · Senate Mar 16, 2026

SB 25: Income Tax - Cybersecurity Technology and Service Tax Credit - Alterations

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable 50% tax credit for cybersecurity purchases, providing direct tax relief to businesses under specific criteria.90% confidence ✓ TechnologySupports TechnologyCreates tax credit for cybersecurity tech purchases, incentivizing business investment in security measures, directly enhancing cybersecurity protections.95% confidence ✓ VeteransSupports VeteransBill requires cybersecurity vendors to be veteran-owned to qualify for tax credit, directly supporting veteran entrepreneurship and business ownership opportunities.85% confidence

Sub-Topics Income Tax Procurement Tax Credits Cybersecurity

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died · Maryland · House of Delegates Mar 9, 2026

HB 323: Income Tax - Credit for Income Taxes and Penalties Due to Financial Exploitation

HB 323 creates a Maryland state income tax credit for residents who paid early withdrawal penalties on retirement funds due to financial exploitation. The credit covers the lesser of the state tax attributable to those penalties or the federal penalty paid, directly helping vulnerable adults (defined as older adults or those with diminished capacity due to age, disability, or health conditions) who were exploited by someone in a position of trust. It applies when exploitation involved deception, breach of fiduciary duty, or misuse of assets leading to forced early retirement fund withdrawals. This policy change provides financial relief for victims of financial exploitation by offsetting penalties they incurred.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit providing relief to vulnerable adults, reducing their tax burden through direct tax relief for exploitation-related penalties.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Maryland · Senate Feb 3, 2026

SB 372: Community Development - Maryland New Markets Development Program - Establishment

SB 372 establishes Maryland's New Markets Development Program to incentivize private investment in low-income communities. It creates a refundable tax credit against state income tax and certain insurance taxes for investors who make qualified equity investments in Maryland-based community development entities serving low-income areas. The credit provides 5% of the investment amount for the first three years and 8.75% for the next four years, totaling seven years. This directly affects investors, community development entities, and qualifying low-income businesses that receive capital to support job creation and economic development in underserved areas.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credits (5-8.75%) for investors in low-income communities, incentivizing private investment through tax relief to fund community development.95% confidence ✓ HousingSupports HousingCreates tax credits to incentivize private investment in low-income community development, directly funding affordable housing initiatives in underserved areas.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Community Development Property Development Tags Economic Development

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signed · Maryland · Senate May 31, 2026

SB 148: Income Tax - Credit for 9-1-1 Specialist Retirement Income (Supporting Our 9-1-1 Specialists Act)

SB 148 expands Maryland's income tax break for retired public safety employees to include 9-1-1 specialists. The bill modifies the tax code to allow retired 9-1-1 specialists - defined as those working at county emergency call centers handling emergency requests - to subtract up to $15,000 of their retirement income from taxable income, just like correctional officers and emergency medical personnel. This change applies to retirees aged 55+ who receive retirement income attributable to their work as 9-1-1 specialists. The law takes effect for tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax break for retired 9-1-1 specialists, reducing taxable income by $15k, providing tax relief to public safety retirees per tax code modification.95% confidence

Sub-Topics Income Tax Tax Incentives Tags Public Safety

passed · Maryland · House of Delegates Apr 13, 2026

HB 13: Income Tax - Credit for 9-1-1 Specialist Retirement Income (Supporting Our 9-1-1 Specialists Act)

This bill expands Maryland's income tax deduction for retirement income by adding "9-1-1 specialists" to the list of eligible public safety employees. It modifies tax code sections to include retired 9-1-1 specialists - defined as employees handling emergency calls and dispatching services - in the $15,000 annual tax deduction for retirement income. The change directly affects retired 9-1-1 specialists who meet the age requirement (55+), allowing them to reduce their taxable income by up to $15,000. The policy takes effect for tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax deduction for retired 9-1-1 specialists, providing tax relief to public safety retirees per tax code modification.95% confidence

Sub-Topics Income Tax Tags Public Safety

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passed · Maryland · Senate Mar 16, 2026

SB 356: Income Tax Credit - Parent of a Stillborn Child

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit reducing tax liability for eligible parents, offering direct financial relief through state tax system95% confidence

Sub-Topics Income Tax Tax Credits

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