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.