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.
SB 305 extends funding for nonprofit organizations providing automotive repair training and reentry services to formerly incarcerated individuals in Maryland. It extends the grant period from fiscal years 2026-2028 to 2026-2029, authorizing $1 million annually for qualifying nonprofits that train at least 50 individuals yearly in auto repair and achieve a 50% job placement rate for participants. The Governor’s Office of Crime Prevention administers the grants, requiring nonprofits to submit annual reports on fund usage, participant numbers, and employment outcomes. This bill directly affects nonprofits meeting specific service criteria and supports employment pathways for formerly incarcerated individuals.
SB 137 modifies Maryland's personal property tax exemption rules for small business owners. It removes restrictions that previously prevented the State Department of Assessments and Taxation from collecting information or requiring tax returns from individuals or businesses owning personal property (excluding exempt vehicles) with a total original cost under $20,000. If a taxpayer attests that their property meets this threshold, the department cannot demand tax returns or additional information. The bill applies to all taxable years beginning after June 30, 2026, and takes effect June 1, 2026. This change streamlines tax collection for low-value business property without altering the exemption threshold itself.
SB 4, the "Keeping Charities Nonpartisan Act of 2026," requires charitable organizations recognized by the IRS for tax-deductible donations to remain nonpartisan. It prohibits these groups from participating in political campaigns for or against candidates for public office. The bill authorizes Maryland’s Secretary of State and Attorney General to jointly revoke a charity’s tax-exempt status if it violates this rule, and mandates that the Comptroller and State Department of Assessments and Taxation must revoke related state tax exemptions. This directly affects Maryland-based charities receiving federal tax-deductible donations, requiring them to avoid political activity to maintain their tax status.
SB 369 exempts certain real property owned by nonprofit housing corporations (or their subsidiaries) that provides housing for low-income residents from state and local taxes and special assessments. It also protects this housing property from being seized through court judgments or enforcement actions, while allowing nonprofits to pay a mutually agreed fee instead of taxes. The bill applies to organizations meeting specific criteria: incorporated in Maryland, recognized as 501(c)(3) nonprofits, and operating primarily for affordable housing. Key changes include clarifying which properties qualify for exemptions and reinforcing that judgments against these nonprofits cannot create liens on their housing properties. The law takes effect July 1, 2026.
HB 579 creates a property tax exemption for Baltimore County homeowners aged 65+ who already qualify for the homestead property tax credit. It exempts the first $50,000 of a home's assessed value from state property tax and sets the homestead credit percentage at 100% (instead of the standard 110%) for county and municipal taxes. The bill requires Baltimore County's governing body to implement this credit and specifies that applicants must indicate their age (65+) on the credit application form. This directly affects Baltimore County seniors meeting the existing homestead credit eligibility criteria. The policy changes are limited to Baltimore County and do not alter statewide tax rates or credit calculations for other jurisdictions.
HB 390 is Maryland's 2027 state budget bill, allocating $859 million in total funding for fiscal year 2027 (July 1, 2026-June 30, 2027). It directs $208 million to civil divisions (including $203.6 million for Disparity Grants and $3.0 million for cannabis tax distributions), $163.6 million to legislative operations (like the Office of Legislative Audits), and $859.2 million to the judiciary (covering courts, public defenders, and judicial systems). The bill primarily affects state agencies and programs by authorizing specific funding amounts for their operations, with no new policy requirements. It serves as the formal appropriations framework for state government spending under Maryland's constitutional budget process.
HB 478 modifies Maryland's income tax by expanding the existing $250 deduction for unreimbursed classroom supply expenses to include prekindergarten teachers. Previously, only K-12 classroom teachers qualified; this bill explicitly adds prekindergarten teachers employed full-time in state programs. The deduction remains limited to $250 per year for supplies used by students or for teaching preparation, excluding expenses already deducted federally. This change affects prekindergarten teachers statewide who purchase classroom supplies without reimbursement, effective for taxable years starting after December 31, 2025.
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.
HB 112 extends the deadline for community solar energy systems to receive Public Service Commission approval from December 31, 2025, to December 31, 2030, to qualify for agricultural property tax assessment. It specifically clarifies that land used for "agrivoltaics" (solar systems combined with farming) must be assessed as actively farmland under Maryland’s agricultural tax program. This change directly affects community solar developers and landowners with qualifying solar installations seeking lower agricultural tax rates. The bill takes effect June 1, 2026, applying to taxable years beginning after June 30, 2026.
