Budget & Taxes (Tax Incentives)

passed both · Maryland · House of Delegates Apr 13, 2026

HB 139: Sales and Use Tax - Tax-Free Day - Veterans' Day

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.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates temporary sales tax exemption for veterans, reducing state revenue and weakening tax base during the tax-free day.90% confidence ✓ VeteransSupports VeteransTax-free shopping on Veterans Day provides direct financial benefit to veterans, recognizing service through reduced costs on qualifying items.95% confidence

Sub-Topics Audits & Accountability Sales Tax Tax Incentives Memorials & Recognition

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in committee · Maryland · Senate Feb 3, 2026

SB 372: Community Development - Maryland New Markets Development Program - Establishment

SB 372 establishes Maryland's New Markets Development Program to incentivize private investment in low-income communities. It creates a refundable tax credit against state income tax and certain insurance taxes for investors who make qualified equity investments in Maryland-based community development entities serving low-income areas. The credit provides 5% of the investment amount for the first three years and 8.75% for the next four years, totaling seven years. This directly affects investors, community development entities, and qualifying low-income businesses that receive capital to support job creation and economic development in underserved areas.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credits (5-8.75%) for investors in low-income communities, incentivizing private investment through tax relief to fund community development.95% confidence ✓ HousingSupports HousingCreates tax credits to incentivize private investment in low-income community development, directly funding affordable housing initiatives in underserved areas.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Community Development Property Development Tags Economic Development

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signed · Maryland · Senate May 31, 2026

SB 148: Income Tax - Credit for 9-1-1 Specialist Retirement Income (Supporting Our 9-1-1 Specialists Act)

SB 148 expands Maryland's income tax break for retired public safety employees to include 9-1-1 specialists. The bill modifies the tax code to allow retired 9-1-1 specialists - defined as those working at county emergency call centers handling emergency requests - to subtract up to $15,000 of their retirement income from taxable income, just like correctional officers and emergency medical personnel. This change applies to retirees aged 55+ who receive retirement income attributable to their work as 9-1-1 specialists. The law takes effect for tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax break for retired 9-1-1 specialists, reducing taxable income by $15k, providing tax relief to public safety retirees per tax code modification.95% confidence

Sub-Topics Income Tax Tax Incentives Tags Public Safety

signed · Maryland · House of Delegates May 26, 2026

HB 359: Property Tax Credit - Urban Agricultural Property - Alterations

HB 359 amends Maryland's property tax credit for urban agricultural property, clarifying eligibility and adding procedural requirements for jurisdictions granting the credit. It defines "urban agricultural property" as land between 1/8 and 5 acres in priority areas (not assessed as agricultural) used for activities like crop production, beekeeping, environmental mitigation, community programs, or agritourism. The bill requires jurisdictions to evaluate the credit's effectiveness after 3 years and, if terminating it, must provide the public with at least one year's notice and an opportunity to comment or appeal. This directly affects Baltimore City, counties, and municipalities that administer the tax credit for qualifying urban farms and agricultural operations.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends property tax credit, providing tax relief for urban agricultural property owners, aligning with tax relief indicators.90% confidence ✓ EnvironmentSupports EnvironmentExplicitly lists 'environmental mitigation' as qualifying activity for tax credit, incentivizing eco-friendly urban agricultural practices that align with environmental protection goals.85% confidence

Sub-Topics Property Tax Tax Credits Tax Incentives Tags Agriculture

in committee · Maryland · House of Delegates Jan 28, 2026

HB 560: Sales and Use Tax and Property Tax - Exemptions for Data Centers - Repeal

HB 560 repeals two tax exemptions for data centers in Maryland: one that exempted sales and use tax on qualifying equipment purchases and another that allowed local governments to reduce property tax on data center equipment. This bill directly affects data centers previously eligible for these breaks, requiring them to pay standard sales and use tax on equipment and full property tax on their assets. The repeal removes Sections 11-239 (Tax-General) and 7-248 (Tax-Property) from Maryland law, eliminating the eligibility requirements and certification process for these exemptions. As a result, data centers will no longer qualify for these specific tax benefits under current law.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals tax exemptions for data centers, closing a loophole to increase state revenue and strengthen fiscal management per Budget & Taxes topic.95% confidence

Sub-Topics Property Tax Sales Tax Tax Incentives

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signed · Maryland · Senate Apr 28, 2026

SB 403: Sales and Use Tax - Elementary or Secondary School Book Fairs - Exemption

SB 403 exempts sales tax on in-person book fairs held at Maryland elementary and secondary schools. It applies to sales by schools, parent-teacher organizations (PTOs), or other nonprofit groups operating these events on school premises. The exemption covers sales where students, staff, or PTO members act as agents for vendors, with all net proceeds used solely for the school's educational benefit. This bill adds a new tax exemption provision (Section 11-204(b)(9)) to Maryland’s tax code, effective July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts sales tax on school book fairs, providing tax relief for educational programs and increasing net proceeds for schools per tax code amendment.95% confidence ✓ EducationSupports EducationExempts sales tax on school book fairs, increasing net proceeds for educational programs without direct state funding.95% confidence

Sub-Topics Sales Tax Tax Incentives K-12 Education Teachers

in committee · Maryland · Senate Jan 22, 2026

SB 271: Income Tax - Subtraction Modification - Retirement Income of Fire, Rescue, and Emergency Services Personnel - Eligibility

This bill expands a Maryland income tax break for retirees by including retirement income from the District of Columbia. It modifies the tax code to allow Maryland residents who are retired fire, rescue, or emergency services personnel (including those who worked for DC fire/rescue organizations) to subtract up to $15,000 of that retirement income from their taxable income. The change applies to individuals aged 55 or older as of the end of the tax year. This adjustment aligns DC-based public safety retirees with existing eligibility for the state's tax subtraction benefit. The bill takes effect July 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing retirement income subtraction for specific retirees, aligning with tax relief indicators for middle-income groups under Budget & Taxes policy.95% confidence

Sub-Topics Income Tax Tax Incentives Tags Public Safety

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in committee · Maryland · Senate Jan 15, 2026

SB 33: Recordation and Transfer Taxes - Exemption for Related Business Entities - Common Law Trusts

SB 33 expands an existing tax exemption for property transfers between related business entities to include common law trusts. It amends Maryland law to explicitly allow transfers of real property between parent companies and subsidiaries (or among subsidiaries) involving common law trusts to qualify for exemption from recordation and transfer taxes. This applies to transfers with no consideration, nominal consideration, or consideration limited to ownership interest changes, provided specific ownership history requirements are met. The change takes effect July 1, 2026, and affects business entities using common law trusts in related-party property transfers. Individual homeowners or unrelated transfers are not impacted by this provision.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExpands tax exemption for business transfers, reducing state tax revenue, aligning with tax break indicators for wealthy entities.90% confidence

Sub-Topics Tax Incentives

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in committee · Maryland · Senate Jan 15, 2026

SB 137: Personal Property Tax - Exemptions for Low Assessment - Alteration

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces tax compliance burden for small businesses with property under $20k, providing tax relief per middle-income support indicator90% confidence

Sub-Topics Property Tax Tax Incentives Tags Small Business

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

HB 579: Baltimore County - Property Tax - Partial Exemption and Credits for Seniors

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for seniors (65+) on primary residence, reducing their tax burden. Aligns with tax relief for lower-income seniors through direct reduction in assessed value tax liability.95% confidence ✓ HousingSupports HousingProvides property tax exemption for seniors, enhancing housing affordability and stability for elderly homeowners through reduced tax burden.85% confidence

Sub-Topics Property Tax Tax Credits Tax Incentives Property Taxes

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