HB 840 would allow Baltimore City and local Maryland counties or municipalities to create a property tax credit for commercial buildings rented to small businesses. This credit applies only to buildings located in designated Arts and Entertainment Districts (under Title 4, Subtitle 7 of the Economic Development Article) or Main Street Maryland Communities (designated by the Department of Housing and Community Development). Local governments would set the credit amount, duration, eligibility rules, and application process. The bill takes effect June 1, 2026, for tax years beginning after June 30, 2026.
SB 767 would allow Baltimore City and Maryland counties or municipalities to create a property tax credit for commercial buildings rented at fair market value to small businesses located in two specific zones: Arts and Entertainment Districts (under Title 4, Subtitle 7 of the Economic Development Article) or designated Main Street Maryland communities. Local governments would set the credit amount, duration, eligibility rules, and application process through their own ordinances. The credit applies to property taxes on qualifying buildings and takes effect for tax years beginning after June 30, 2026. This bill directly affects small businesses renting commercial space in these designated areas and the local governments managing property tax policy.
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.
HB 983 modifies Maryland's tax credit programs and exemptions. It terminates the Enterprise Zone Program and the One Maryland Economic Development Tax Credit Program on specific dates, ending eligibility for related tax benefits. The bill also limits annual claims for enterprise zone tax credits, restricts carryforwards for film production tax credits, and repeals sales tax exemptions for concrete, telecom equipment, and construction materials. Additionally, it alters eligibility rules for certain vehicle tax credits and ends property tax credits tied to enterprise zones.
HB 898, the DECADE Act, reorganizes Maryland's economic development programs to streamline administration and expand incentives. It redesignates the Economic Development Opportunities Program Account as the "Strategic Closing Fund" under the Department of Commerce, alters eligibility and calculation rules for tax credits (including Job Creation, R&D, and film production credits), and extends the Build Our Future Grant Pilot Program. The bill allows pass-through entities to allocate tax credits to members and removes limits on film production tax credit certificates. These changes directly affect businesses, investors, and film producers seeking state economic development incentives.
SB 547 requires state and local government units, as well as businesses receiving state funding for goods or services, to report annual details about how funds are used. Specifically, it mandates that recipients disclose contractor/subcontractor information - including addresses, employee counts, work locations, and minority business certification status - on annual reports to the Comptroller and on business tax returns. The Comptroller must then compile this data into an annual report for the legislature, including metrics like the percentage of in-state vs. out-of-state contractors and minority business participation. This bill directly affects government entities, funded businesses, and their contractors, aiming to increase transparency in public spending. It takes effect July 1, 2026.
SB 388, the DECADE Act, reorganizes Maryland's economic development programs to streamline administration and adjust eligibility for tax incentives. It redesignates the Economic Development Opportunities Program Account as the Strategic Closing Fund within the Department of Commerce, alters how video lottery proceeds are distributed, and modifies rules for several tax credits - including Job Creation, Research and Development, and film production credits - to expand access for businesses and investors. Key changes include allowing pass-through entities to allocate biotechnology tax credits differently, enabling film producers to amend credit applications, and extending the Build Our Future Grant Pilot Program. The bill directly affects businesses seeking economic development tax credits and state agencies managing these programs.
HB 484 modifies Maryland's corporate income tax code to disallow deductions for certain direct-to-consumer (DTC) pharmaceutical advertising expenses that are deductible under federal law. It specifically targets expenses paid by "covered entities" (pharmaceutical sponsors or companies owning drug outsourcing facilities) for advertising "covered drugs" (prescription drugs under federal law) to the general public via media like TV, radio, social media, or digital platforms. The bill requires these expenses - already deducted federally - to be added back to Maryland taxable income, effectively eliminating the state tax deduction for such advertising. This change applies to taxable years beginning after December 31, 2025, and directly affects pharmaceutical companies engaging in DTC advertising for covered drugs.
HB 294 modifies Maryland's personal property tax law to simplify exemptions for small businesses. It repeals restrictions that previously prevented the State Department of Assessments and Taxation from collecting information or requiring tax returns from businesses owning business personal property valued under $20,000 total (excluding vehicles). This change directly affects small business owners with low-value equipment, removing administrative burdens by eliminating the need to submit tax returns or provide property details if they qualify for the exemption. The law takes effect June 1, 2026, for taxable years beginning after June 30, 2026.
HB 690, the "Economic Competitiveness Act of 2026," lowers Maryland's corporate income tax rate gradually over several years. It directly affects corporations doing business in Maryland that pay state corporate income tax. The bill reduces the rate from 8.25% (for tax years 2026-2027) to 7.75% (2027-2028), then to 7.25% (2028-2029), 6.75% (2029-2030), and finally to 6.25% starting in 2030. The changes take effect July 1, 2026, as specified in the bill's provisions.
