Budget & Taxes (Tax Incentives)

in committee · Maryland · Senate Feb 3, 2026

SB 374: Transportation - Rental Cars - Excise Tax Exemption

SB 374 exempts rental vehicles from Maryland's vehicle excise tax, directly affecting rental car companies operating in the state. The bill adds a new exemption category (Section 13-810(a)(26)) to the existing list, removing rental vehicles from the tax base that previously applied a 3.5% rate under Section 13-809(c)(1)(ii). This change eliminates the excise tax obligation for rental car companies on vehicles they lease to customers. The exemption takes effect July 1, 2026, and does not alter other tax rates or provisions.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts rental cars from excise tax, reducing state revenue and weakening tax base for fiscal management.90% confidence

Sub-Topics Sales Tax Tax Incentives

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signed · Maryland · House of Delegates May 26, 2026

HB 500: Sales and Use Tax - Precious Metal Bullion or Coins - Exemption

HB 500 removes two requirements that previously limited the sales tax exemption for precious metal bullion and coins. Specifically, it eliminates the $1,000 minimum sale price and the requirement that sales must occur at the Baltimore Convention Center. The bill expands the exemption to cover all qualifying precious metal bullion (refined metal where value depends on metal content) and historically used coins, while still excluding jewelry and art. This change directly affects buyers and sellers of these items by making the exemption available for more transactions without location or price restrictions. The exemption will apply to all qualifying sales starting July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands sales tax exemption for precious metals, providing tax relief for qualifying buyers/sellers, directly affecting tax policy.90% confidence

Sub-Topics Sales Tax Tax Incentives

in committee · Maryland · House of Delegates Feb 3, 2026

HB 506: Economic Development - Transformational Project Financing Program - Establishment

HB 506 establishes the Transformational Project Financing Program under Maryland's Economic Development Corporation. It allows local governments (political subdivisions) to apply for designation of specific areas as "State-supported development districts" to fund major development projects. The key mechanism redirects property tax revenue from increased property values ("tax increment") within these districts into a dedicated fund, rather than the general municipal budget, for approved projects. Priority areas include sustainable communities, transit-oriented developments, and designated enterprise zones. This program modifies existing law to create a structured process for economic development financing through tax increment funding.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects tax increment revenue into dedicated project funds, promoting fiscal management for economic development without impacting general budgets.90% confidence

Sub-Topics Property Tax Revenue Tax Incentives Tags Economic Development

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signed · Maryland · Senate May 26, 2026

SB 193: Washington County - Sales and Use Tax Exemption - Target Redevelopment Area

SB 193 creates a sales and use tax exemption for construction materials and warehousing equipment purchased specifically for use in Washington County's designated Target Redevelopment Area (bounded by Robinwood Drive, Mount Aetna Road, and Yale Drive within an Office/Research/Industry zoning district). Businesses buying these items for that area can avoid the tax if they provide the vendor with Comptroller-issued eligibility proof. The exemption is valid from July 1, 2026, through June 30, 2036, after which it automatically expires without further legislative action. This directly affects developers and businesses operating within the defined redevelopment zone.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates sales tax exemption for business development in Target Redevelopment Area, providing tax relief to stimulate economic growth in designated zone.95% confidence

Sub-Topics Audits & Accountability Sales Tax Tax Incentives

signed · Maryland · House of Delegates May 12, 2026

HB 135: Economic Development - Tax Increment Financing - Noncontiguous Areas

HB 135 allows local governments in Maryland to designate *noncontiguous* areas as development districts for tax increment financing (TIF). This means political subdivisions (like counties or cities) can now create TIF zones that include separate, disconnected parcels of land - not just connected areas - under new provisions in Section 12-201(i)(1). The bill modifies existing law to explicitly permit this by redefining "development district" to include noncontiguous areas and updating related sections (e.g., 12-203). It directly affects local governments seeking to use TIF for economic development projects across multiple, non-adjacent sites. The law takes effect October 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesEnables local governments to use tax increment financing (TIF) for noncontiguous development zones, strengthening fiscal tools for economic development funding under budget management.85% confidence

Sub-Topics Tax Incentives Tags Economic Development

in committee · Maryland · House of Delegates Feb 3, 2026

HB 729: Sales and Use Tax - Precious Metal Bullion or Coins - Exemption

HB 729 removes two requirements for a sales tax exemption on precious metal bullion or coins. Currently, the exemption only applies if the sale price exceeds $1,000 and occurs at the Baltimore Convention Center. This bill repeals both conditions, making the exemption available for all qualifying sales regardless of price or location. It specifically defines "precious metal bullion or coins" to exclude jewelry and art, ensuring the exemption applies only to investment-grade metal products. The change takes effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands sales tax exemption for precious metal bullion, reducing tax burden on investment-grade purchases and providing tax relief per policy indicators.95% confidence

Sub-Topics Sales Tax Tax Incentives

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signed · Maryland · Senate May 26, 2026

SB 309: Sales and Use Tax - Precious Metal Bullion or Coins - Exemption

SB 309 expands Maryland's sales tax exemption for precious metal bullion or coins by removing two current requirements: a $1,000 minimum sale price and the need for sales to occur at the Baltimore Convention Center. The bill clarifies that the exemption applies to refined precious metal products (like gold or silver bars) and coins used as currency, excluding jewelry or art made from precious metals. This change directly affects buyers purchasing investment-grade bullion or coins, making the exemption available for more transactions regardless of price or location. The policy update takes effect July 1, 2026, broadening access to the tax break for eligible purchases.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands sales tax exemption for precious metals, providing tax relief by removing barriers to tax-free purchases.90% confidence

Sub-Topics Procurement Sales Tax Tax Incentives

in committee · Maryland · House of Delegates Jan 29, 2026

HB 585: Transportation - Rental Cars - Excise Tax Exemption

HB 585 exempts rental cars from Maryland's vehicle excise tax, directly affecting rental car companies operating in the state. The bill adds "RENTAL VEHICLE" to the list of vehicles already exempt from this tax under Maryland law. This change takes effect July 1, 2026, removing a tax burden specifically on vehicles used for short-term rentals.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts rental cars from excise tax, reducing state revenue; tax break for businesses aligns with 'oppose' indicators for weakening tax base90% confidence

Sub-Topics Sales Tax Tax Incentives

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passed · Maryland · Senate Mar 24, 2026

SB 455: Economic Development - Transformational Project Financing Program - Establishment

SB 455 establishes the Transformational Project Financing Program to help local governments fund large-scale development projects in designated areas. It allows counties or cities to apply to the Maryland Economic Development Corporation for "State-supported development district" status, requiring them to redirect property tax increases (tax increment) from these areas into a special fund instead of the general budget. This fund finances projects in priority areas like sustainable communities, transit-oriented developments, and designated enterprise zones. The bill creates new rules for calculating state revenue contributions and managing bond proceeds specifically for these designated districts.

Topics ✓ Budget & TaxesSupports Budget & TaxesRedirects property tax increments to a special fund for development projects, promoting targeted fiscal management and strategic spending on priority areas.90% confidence ✓ HousingSupports HousingBill creates tax increment fund for development projects in sustainable communities, directly supporting housing development priorities without restricting tenant rights or affordability.85% confidence

Sub-Topics Property Tax Revenue Tax Incentives Housing Finance Property Development Property Taxes Tags Economic Development

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in committee · Maryland · House of Delegates Jan 29, 2026

HB 5: Community Development - Maryland New Markets Development Program - Establishment

HB 5 establishes Maryland's New Markets Development Program, administered by the Department of Housing and Community Development. It allows businesses to claim tax credits against certain state insurance taxes (like premium receipts tax) for equity investments in qualifying community development entities that serve low-income areas. The credit equals 0% of the investment amount for the first three years and 12.5% for the next four years, applicable to investments made on or after July 1, 2026. This directly affects investors in qualifying community development entities and businesses meeting the "qualified active low-income community business" criteria, including those relocating operations to Maryland.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credits for businesses investing in low-income community development, providing tax relief to stimulate economic activity in underserved areas.90% confidence ✓ HousingSupports HousingBill creates tax credits to incentivize investments in low-income areas via community development entities, directly advancing affordable housing development.90% confidence

Sub-Topics Tax Incentives Community Development Property Development

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