Budget Reconciliation and Financing Act of 2025

SB 321, the Budget Reconciliation and Financing Act of 2025, makes broad changes to Maryland's tax code and budget structure. It increases income tax rates for certain income brackets, adds a new tax on net capital gains, and alters the Maryland Earned Income Tax Credit. The bill also adjusts fees for horse industry licensees, modifies pension funding requirements for counties, and repeals several existing programs like the Low Intensity Support Services Program and teacher retirement supplemental grants. Key provisions include changing how corporations calculate state taxes, expanding revenue sources for certain funds, and altering estate tax thresholds.