SB 500 expands Washington County's property tax credit program for disabled veterans to include members of the National Oceanic and Atmospheric Administration (NOAA) and the Public Health Service (PHS) who meet the existing eligibility criteria. The bill amends the county code to define "disabled veteran" to cover these federal service members, who must still have an honorable discharge, a service-connected disability certified by the U.S. Department of Veterans Affairs, and own their primary residence. The credit amount remains tied to the veteran's disability rating percentage, applied against county property taxes. This change directly affects qualifying NOAA and PHS members in Washington County who previously did not qualify under the county's existing definition.
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 1279 modifies Maryland's Catalytic Revitalization Project Tax Credit program to expand eligibility and adjust credit calculations. It updates definitions to include properties formerly owned by the federal government or state, or those formerly used as schools/hospitals, and clarifies income thresholds for "workforce housing" (e.g., 60-150% area median income in designated areas). The bill changes how tax credits are claimed: for workforce housing projects, 50% of the credit applies to workforce units in the first year, with 33% of non-workforce costs spread over three subsequent years. This directly affects developers and property owners rehabilitating qualifying properties seeking state tax credits. The changes aim to simplify claiming while expanding opportunities for projects in targeted communities.
HB 745 makes Maryland's senior income tax credit refundable, allowing eligible residents aged 65 or older to receive a cash refund if the credit exceeds their state tax liability. The credit applies to single seniors with federal adjusted gross income under $100,000 ($1,000 credit) and married couples filing jointly with income under $150,000 ($1,750 credit, or $1,000 if only one spouse qualifies). In specific fiscal years when state revenue estimates fall more than 3.75% below projections, the credit amount is reduced to $500 for singles ($50,000-$100,000 income) or $875 for married couples ($100,000-$150,000 income). This change ensures seniors receive the full credit amount as a refund rather than losing unused portions under previous non-refundable rules.
HB 930 modifies Maryland’s income tax code to decouple from federal changes affecting education expenses. It prohibits the Governor from joining a federal tax credit program for elementary/secondary education scholarships and adjusts how employer contributions to education accounts (like Maryland’s Prepaid College Trust or College Investment Plans) are treated. Specifically, it adds tax on unused distributions from these accounts if not used for qualified education expenses, while excluding contributions and qualified distributions from taxable income. This directly affects Maryland residents using these education savings accounts and ensures state tax rules differ from federal law.
SB 468 authorizes Maryland counties to create their own local child tax credits against county income tax for qualifying families. It allows counties to provide credits for each "qualified child" (defined as a dependent under age 6, or under 17 with a disability) to households with federal adjusted gross income below $15,000. The credit amount is set by the county, but must follow income phaseout rules ($50 reduction per $1,000 of income over $15,000) and requires county notification to the Comptroller. This bill does not create a state-level credit but gives counties the option to implement this local tax benefit for low-income families.
HB 1308 modifies Maryland's homeowners' property tax credit program by raising eligibility thresholds. It increases the assessed value cap for qualifying homes from $300,000 to $480,000, raises the income threshold for the first tax credit bracket from $8,000 to $12,500, and raises the combined gross income limit from $60,000 to $95,000. The bill also raises the net worth limit for eligibility from $200,000 to $320,000. These changes will directly affect more middle-income homeowners who previously exceeded the lower limits, expanding access to the credit starting June 1, 2026.
HB 1273 (Maryland Homeowner Protection and Homestead Tax Credit Portability Act of 2026) modifies Maryland's homestead tax credit system by reducing the maximum credit percentage from 110% to 105% for state and bicounty property taxes. It creates a new "homestead credit portability" feature allowing homeowners who move to a new residence to carry forward a portion of their previous home's tax credit. The portability adjustment calculates a credit based on the difference in taxable assessments between the previous and new dwelling, capped at $500,000 of the new property's assessment. This bill directly affects homeowners who relocate within Maryland and change their primary residence.
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.
SB 812 modifies Maryland's homeowners' property tax credit by raising the income eligibility threshold from $60,000 to $100,000 in the preceding calendar year and adjusting the credit calculation structure. The bill now applies 0% to the first $15,000 of combined income, 3% to the next $7,500, 6% to the following $7,500, and 9% to income exceeding $30,000. This change directly affects Maryland homeowners with combined gross income up to $100,000 who qualify for the credit. The bill takes effect for tax years beginning after June 30, 2026.
