Income Tax - Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act)

SB 99 modifies Maryland's income tax code to increase tax deductions for military retirees. It raises the deductible amount for military retirement income from $20,000 (for those 55+) to $25,000 for 2025 tax years and $40,000 starting in 2026, regardless of age. This directly affects Maryland residents receiving military retirement income, including death benefits, from qualifying service (active duty, reserves, National Guard, or specific federal health corps). The bill expands existing tax relief by increasing the deduction threshold without changing eligibility requirements. It takes effect July 1, 2025.