Subtraction Modification - Public Safety Retirement Income

HB 2 increases the Maryland income tax deduction for retirement income from $15,000 to $20,000 annually for retired public safety employees. It specifically affects individuals who are at least 55 years old during the tax year and received retirement income from employment as correctional officers, law enforcement officers, firefighters, rescue personnel, or emergency medical technicians (paramedics). The bill modifies Section 10-207(mm) of Maryland's tax code to expand this deduction, reducing taxable income for qualifying retirees. The change takes effect for tax years beginning after December 31, 2025, and applies to all eligible public safety retirees meeting the age requirement.