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.
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.
HB 653 increases Maryland's tax deduction for retirement income earned by retired public safety employees, including correctional officers, law enforcement officers, firefighters, and emergency medical personnel. It phases in a gradual increase in the deductible amount from $15,000 to $20,000 over five years, starting with $15,000 for 2025-2026 tax years and rising by $1,000 annually until reaching $20,000 by 2029-2030. This deduction reduces taxable income for eligible retirees aged 55+ who receive retirement income tied to their public safety service. The changes take effect July 1, 2026, as part of Maryland's income tax code.
HB 1353 exempts homeless individuals in Maryland from specific fees and requirements. It prohibits the Maryland Department of Health from charging for vital records (like birth or death certificates) issued to homeless people, waives vehicle registration fees for vehicles owned by homeless individuals, and eliminates driver’s license fees for homeless applicants. The bill also allows unaccompanied homeless youth under 18 to take certain driver’s license exams sooner and exempts homeless individuals from mandatory vehicle emissions inspections. Homeless individuals must provide a written statement proving their homelessness to access these exemptions.
HB 694 modifies Maryland's income tax calculation by excluding certain foreign earned income from the state tax addition. Specifically, it removes the requirement to include income exempt from federal tax under IRS Section 911 (for overseas workers) when calculating Maryland adjusted gross income. This change directly affects Maryland residents who work abroad and qualify for the federal foreign earned income exclusion. The bill takes effect July 1, 2026, for tax years beginning after December 31, 2025.
HB 706 (Federal Obligations Enforcement Act) authorizes Maryland's Central Collection Unit to collect delinquent federal funds owed to the state, directly affecting the state government and the federal government. Key provisions allow the Unit to place liens on federal property within Maryland, withhold state payments to the federal government, and refer delinquent funds for enforcement. The bill establishes that the Board of Public Works can determine federal delinquency when the government fails to comply with court decisions on spending. It modifies existing Maryland law to reserve state jurisdiction over federal land and creates specific procedures for collecting funds. The law focuses on concrete enforcement mechanisms for unpaid federal obligations to the state.
