HB 734 extends the deadline for community solar energy systems to qualify for agricultural property tax assessment from 2025 to December 31, 2030. It applies to systems placed in service after June 30, 2022, and approved by the Public Service Commission by the new deadline. The bill ensures land used for qualifying community solar projects is assessed as actively farmed agricultural land, allowing property owners to receive lower tax rates. This directly affects landowners operating community solar systems that meet these criteria.
SB 961 modifies Maryland's tax credit for hunters donating processed deer meat. It removes the previous $300 annual limit on the credit, allowing hunters to claim the full credit for eligible expenses without the cap. The bill maintains a $75 per deer processing expense limit and requires donations to go to IRS 501(c)(3) organizations. Hunters must still comply with hunting laws, and donation programs must report donor information to the Comptroller annually. The change takes effect July 1, 2026.
HB 1254 requires county school boards to justify service contracts (outsourcing school services) by submitting detailed cost comparisons showing at least 20% savings over using school employees, along with plans to assist affected staff. It mandates that boards demonstrate they considered alternatives like reorganizing services before contracting. The bill also directs the State Department of Education to develop a paid, in-person professional development system for paraeducators and support staff by July 2027, including training on collaboration, student safety, crisis prevention, and job skills. This new system must be provided during school hours and will directly affect all paraeducators and support professionals in Maryland public schools.
SB 980 modifies Maryland's property tax credit for disabled veterans and surviving spouses by adjusting the required disability rating thresholds. It lowers the minimum rating for the 50% credit from 75% to 70% and for the 25% credit from 74% to 69%, expanding eligibility without changing existing income limits ($100,000 for single filers, $200,000 for joint filers). The bill applies to veterans or surviving spouses owning a dwelling house who meet the revised disability criteria. This change takes effect for taxable years beginning after June 30, 2026.
HB 1297 modifies Maryland's student loan debt relief tax credit by changing how unused credit amounts are recaptured. It requires taxpayers to repay only the unused portion of the credit (not the full amount) if they don't use it for student loan repayment within 3 years. The bill also authorizes the Maryland Higher Education Commission to grant extensions of this 3-year period for taxpayers unable to repay due to specific federal delays, such as litigation over the SAVE repayment plan, Department of Education understaffing, or waiting for public service loan forgiveness. This directly affects Maryland residents with qualifying student loan debt who claim the tax credit.
HB 139 establishes an annual tax-free day on November 11 (Veterans Day) starting in 2026, allowing veterans to purchase items under $2,000 without paying Maryland's sales tax. To qualify, veterans must show a driver's license or ID card noting veteran status at the point of sale. The Comptroller can suspend the tax-free day at their discretion. This law directly affects veterans shopping for qualifying items on Veterans Day, creating a temporary sales tax exemption with specific verification requirements.
SB 247 converts Maryland's Biotechnology Investment Incentive Tax Credit into a direct grant program administered by the Department of Commerce. It replaces tax credits with cash grants for qualifying biotechnology companies engaged in research, development, or commercialization of biological technologies. The bill requires the Department to disburse grants within a specified timeframe and allows recipients to deduct these grants from their Maryland income tax for the same year. This change shifts the incentive from tax savings to immediate funding, directly affecting eligible biotech firms in Maryland.
This bill expands Maryland's income tax deduction for retirement income by adding "9-1-1 specialists" to the list of eligible public safety employees. It modifies tax code sections to include retired 9-1-1 specialists - defined as employees handling emergency calls and dispatching services - in the $15,000 annual tax deduction for retirement income. The change directly affects retired 9-1-1 specialists who meet the age requirement (55+), allowing them to reduce their taxable income by up to $15,000. The policy takes effect for tax years beginning after December 31, 2025.
SB 328 amends Maryland’s property tax credit for disabled or fallen public safety officers by expanding eligibility. It adds disabled officers who die regardless of cause (not just duty-related deaths) to the definition of "fallen public safety officer," and removes the requirement that a dwelling must have been acquired within 10 years of the disability or death. The bill also allows the tax credit amount for new dwellings to match the original credit for a previous dwelling, and authorizes local governments to set their own acquisition timelines or eligibility limits. This directly affects disabled officers, their surviving spouses, and cohabitants who own qualifying homes, as well as county/municipal tax administrators.
SB 389, the Maryland Transit and Housing Opportunity Act, automatically designates transit-oriented development (TOD) areas near rail stations with hourly weekday service (8 a.m.-6 p.m.) as enterprise zones - bypassing normal limits on such designations. It requires Maryland’s development corporation to prioritize loans for projects redeveloping state-owned land near rail stations and delays development taxes/fees for qualifying residential projects. The bill also adds project labor agreements as a scoring factor for TOD funding and adjusts local land-use regulations to support transit-focused development. Directly affecting developers, local governments, and communities near transit hubs, it aims to accelerate housing and infrastructure near rail corridors.
