SB 607 increases the Maryland income tax deduction for retirement income received by retired public safety employees. It phases in higher deduction amounts over time: starting at $15,000 for 2025-2025 tax years, rising to $20,000 by 2030. The bill specifically affects retired correctional officers, law enforcement officers, firefighters, emergency medical personnel, and paramedics who meet the eligibility criteria (age 55+ and retired from qualifying public safety roles). The change takes effect July 1, 2026, and is implemented through incremental annual increases in the deductible amount.
HB 1430 requires Maryland's Interagency Commission on School Construction to distribute funds directly to public charter schools for maintaining and operating their facilities, bypassing local governments. It mandates that starting in fiscal year 2028, the state must appropriate $1,600 per enrolled student from the previous fiscal year for these facilities. The bill applies to all public charter schools occupying facilities used for K-12 education, including those that own or lease their buildings. This establishes a fixed per-student funding formula for facility costs, effective July 1, 2026.
This bill authorizes Wicomico County or its municipalities to grant a property tax credit against local property taxes for real estate owned by Salisbury Neighborhood Housing Services, Inc. (SNHS), specifically for properties SNHS intends to transfer to private owners within a near future. The credit applies only to properties used for development, rehabilitation, and transfer to private owners, excluding administrative or warehouse buildings owned by SNHS. SNHS must submit annual reports detailing all its property holdings and transactions in the jurisdiction granting the credit. The credit becomes effective for taxable years beginning after June 30, 2026.
HB 889 authorizes Wicomico County or its municipalities to grant a property tax credit against local property taxes for real property owned by Salisbury Neighborhood Housing Services, Inc. (SNHS), specifically for properties they intend to transfer soon, use for housing development/rehabilitation, and are not used for administrative purposes. The nonprofit must submit annual reports detailing all its properties and transactions in the jurisdiction granting the credit. The credit terms (amount, duration, scope) would be set by the local government, and the law takes effect June 1, 2026, applying to taxes for 2026 and later.
HB 842 repeals a requirement that a surviving spouse of a service member who died in the line of duty must acquire a dwelling house within two years of the service member's death to qualify for a property tax exemption. The bill directly affects surviving spouses of service members who died in the line of duty, allowing them to qualify for the exemption regardless of when they purchase or acquire the home. Key provisions remove the 2-year acquisition deadline from existing law (Maryland Code, Tax-Property § 7-208(b)), making the exemption available as long as the surviving spouse meets other eligibility criteria. This change takes effect June 1, 2026, applying to all taxable years beginning after June 30, 2026.
HB 1096 requires Baltimore City and Maryland counties to include written notice of eligible property tax credits on property tax bills sent to taxpayers. This applies to existing property tax credits (such as those for seniors or veterans) that taxpayers may qualify for but might not be aware of. If someone other than the taxpayer receives the bill, the recipient must forward the notice to the actual taxpayer in writing. The bill does not create new credits but ensures taxpayers receive clear information about existing ones through their tax billing process.
HB 1611 repeals a fixed $100,000 federal adjusted gross income limit for disabled veterans seeking a property tax credit on their primary residence. Instead, it allows counties and municipalities to set their own income eligibility criteria for the credit, based on a veteran's federal adjusted gross income. The bill directly affects disabled veterans (with service-connected disabilities of 50%+) and their surviving spouses who own their homes. Key provisions shift authority from the state to local governments to determine income thresholds, while maintaining existing credit rates (25% or 50% of property tax) based on disability rating. The change takes effect June 1, 2026, for tax years beginning after that date.
SB 890 exempts premiums for captive insurance purchased by nonprofit hospitals and healthcare systems in Maryland from the state's insurance premium receipts tax. Specifically, it removes the tax obligation for premiums paid by these entities, including their parent companies, subsidiaries, or affiliated providers. The bill also prohibits the Maryland Insurance Administration from charging past-due taxes, penalties, or interest related to this tax for qualifying entities before the law's effective date. This directly affects nonprofit healthcare organizations seeking cost savings on self-insurance arrangements. The policy change modifies existing tax code sections to create this specific exemption.
SB 805 modifies Maryland's Student Loan Debt Relief Tax Credit program. It changes the recapture rule so individuals only repay the *unused portion* of the credit (not the full amount) if they don't use it for student loan payments within 3 years. The bill also authorizes the Maryland Higher Education Commission to extend the repayment deadline for eligible individuals facing specific delays, such as litigation over federal student loan plans or government processing issues. This directly affects Maryland residents who claimed the credit for undergraduate or graduate student loan debt and must now use it within a flexible timeframe. The bill does not alter credit limits ($9 million for 2025, $18 million annually after) or priority rules for state employees.
SB 651 establishes a legal framework for "transfer-on-death deeds" in Maryland, allowing property owners to designate beneficiaries who automatically inherit real estate upon the owner's death without probate. The bill directly affects Maryland homeowners and their named beneficiaries, providing standardized forms for creating or revoking these deeds and exempting them from property transfer taxes. Key provisions simplify recording requirements (removing tax certification needs) and allow retroactive application to certain existing life estate deeds. This change streamlines property transfer, reduces administrative hurdles, and avoids court involvement for qualifying real estate.
