Budget & Taxes (Income Tax)

in committee · Maryland · Senate Jan 22, 2026

SB 291: Income Tax - Credit for Income Taxes and Penalties Due to Financial Exploitation

SB 291 creates a state income tax credit for Maryland residents who paid income taxes and penalties due to early retirement fund withdrawals caused by financial exploitation. It directly affects eligible taxpayers who experienced exploitation - defined as misuse of assets by someone in a position of trust (e.g., family members, caregivers) through deception, breach of fiduciary duty, or unauthorized actions. The credit equals the lesser of the state income tax attributable to the early withdrawal or the federal penalty paid under IRS Section 72(T). This policy change provides financial relief for victims of exploitation without altering existing estate or tax laws beyond this specific credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit reducing burden for victims of financial exploitation, providing direct tax relief to affected taxpayers.95% confidence

Sub-Topics Income Tax Tax Credits

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in committee · Maryland · House of Delegates Jan 15, 2026

HB 87: Income Tax - Energy Efficient Home Improvement Credit

HB 87 creates a Maryland income tax credit allowing homeowners to claim up to 30% of costs for qualifying energy-efficient home improvements, capped at $3,200 annually. It covers specific items like home energy audits ($150 limit), exterior windows ($600 total), doors ($500 total), heat pumps, and biomass stoves ($2,000 limit), all applied to the primary residence. The credit excludes improvements paid for with subsidized energy financing and requires documentation for verification. This policy takes effect for tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for energy-efficient home improvements, providing tax relief to homeowners. Aligns with tax relief indicators for middle/lower income.95% confidence ✓ EnergySupports EnergyProvides tax credit for energy-efficient home upgrades, promoting renewable energy adoption and efficiency improvements like heat pumps and biomass stoves.95% confidence ✓ EnvironmentSupports EnvironmentProvides tax credit for energy-efficient home upgrades (heat pumps, windows, etc.), directly promoting reduced energy consumption and lower emissions per bill summary.95% confidence

Sub-Topics Income Tax Tax Credits Energy Efficiency

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signed · Maryland · House of Delegates Apr 28, 2026

HB 595: Income Tax - Credit for Physician Preceptors in Areas With Health Care Workforce Shortages - Alterations

HB 595 modifies Maryland's income tax credit for physicians mentoring medical students in underserved areas. It removes a requirement that students must be enrolled in a Maryland medical school or training program and reduces the required hours per preceptor rotation from 100 to 90 for community-based clinical training. Licensed physicians serving as preceptors in designated healthcare shortage areas may claim a $1,000 tax credit per qualifying student rotation, capped at $10,000 annually per physician and $100,000 statewide. The bill aims to expand access to physician mentorship by broadening eligibility for the credit, directly benefiting doctors and medical training programs in regions facing healthcare workforce shortages.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a $1,000 tax credit per qualifying student rotation for physicians, providing direct tax relief to incentivize healthcare workforce development in underserved areas.95% confidence ✓ HealthcareSupports HealthcareBill expands tax credit accessibility for physician preceptors in healthcare shortage areas, removing enrollment restrictions and reducing hour requirements to strengthen workforce development in underserved communities.95% confidence

Sub-Topics Income Tax Tax Credits Healthcare Workforce

passed both · Maryland · Senate Apr 13, 2026

SB 247: Biotechnology Investment Incentive Tax Credit - Conversion to Grant Program

SB 247 converts Maryland's Biotechnology Investment Incentive Tax Credit into a direct grant program administered by the Department of Commerce. It replaces tax credits with cash grants for qualifying biotechnology companies engaged in research, development, or commercialization of biological technologies. The bill requires the Department to disburse grants within a specified timeframe and allows recipients to deduct these grants from their Maryland income tax for the same year. This change shifts the incentive from tax savings to immediate funding, directly affecting eligible biotech firms in Maryland.

Topics ✓ Budget & TaxesSupports Budget & TaxesConverts tax credit to direct grants, increasing state spending on biotech incentives instead of reducing tax revenue, advancing fiscal support for the sector.90% confidence ✓ TechnologySupports TechnologyConverts tax credits to direct grants for biotech R&D, funding innovation in biological technologies per bill summary.95% confidence

Sub-Topics Income Tax Tax Credits

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died · Maryland · House of Delegates Feb 23, 2026

HB 370: Prince George's County - Income Tax - Credit for Employers Providing Parental Engagement Leave PG 419-26

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates state income tax credit for employers, providing tax relief and aligning with fiscal policies that strengthen tax incentives for qualifying programs.95% confidence ✓ EducationSupports EducationCreates tax credit for employers providing paid leave for school events (e.g., parent-teacher conferences), directly enhancing parental engagement in K-12 education access.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentCreates tax credit for employers providing paid parental leave (10-20 hours) for school events, expanding employee benefits and supporting work-life balance within employment standards.95% confidence

Sub-Topics Income Tax Tax Credits Teachers Minimum Wage Professional Licensing

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in committee · Maryland · House of Delegates Jan 27, 2026

HB 528: Income Tax - Subtraction Modification - Retirement Income of Fire, Rescue, and Emergency Services Personnel - Eligibility

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands $15,000 tax subtraction for public safety retirees, providing targeted tax relief to eligible individuals through modified income tax code.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands tax benefit for retired public safety workers' retirement income, enhancing financial security for a specific labor group.95% confidence

Sub-Topics Income Tax

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in committee · Maryland · Senate Feb 3, 2026

SB 382: Retire in Maryland Tax Relief Act

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit reducing state tax liability for seniors under $175k AGI, directly advancing tax relief for qualifying residents.95% confidence

Sub-Topics Income Tax Tax Credits Tags Seniors

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passed · Maryland · House of Delegates Apr 10, 2026

HB 694: Income Tax - Addition Modification for Federal Tax-Exempt Income - Study

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes federal tax-exempt foreign income from MD tax calculation, reducing tax burden for overseas workers per IRS Section 911.95% confidence

Sub-Topics Income Tax

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in committee · Maryland · House of Delegates Jan 22, 2026

HB 411: Income Tax - Standard Deduction - Alteration

HB 411 increases Maryland's standard income tax deduction amounts for 2026 and beyond. It raises the standard deduction to $4,100 for single filers (from $3,350), $8,200 for heads of household or surviving spouses (from $6,700), and $8,200 for married couples filing jointly (from $6,700). The bill also establishes an automatic annual cost-of-living adjustment starting in 2026, tying future increases to inflation as measured by the IRS formula. This directly affects Maryland residents who claim the standard deduction instead of itemizing deductions on their state tax returns.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases standard income tax deductions for all filer types, providing tax relief for middle/lower-income residents and tying future increases to inflation.95% confidence

Sub-Topics Income Tax

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in committee · Maryland · Senate Jan 15, 2026

SB 122: State Department of Assessments and Taxation - Local Reimbursement for Administration Costs - Alterations

SB 122 modifies how Maryland counties and Baltimore City reimburse the State Department of Assessments and Taxation for administrative costs. It requires these local jurisdictions to pay 90% of costs for real property valuation, business personal property valuation, and related IT services (instead of 50% for 2012-2013 as previously noted), with payments calculated based on property accounts or business property value. Reimbursements must be paid quarterly (50% by October 1, 25% each January 1 and April 1), and late payments may trigger withholding of local income tax distributions. The changes take effect June 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases state revenue from local reimbursements by raising rate from 50% to 90% for property valuation costs, strengthening budget management.95% confidence

Sub-Topics Income Tax Property Tax

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