Budget & Taxes (Income Tax)

in committee · Maryland · House of Delegates Jan 14, 2026

HB 2: Subtraction Modification - Public Safety Retirement Income

HB 2 increases the Maryland income tax deduction for retirement income from $15,000 to $20,000 annually for retired public safety employees. It specifically affects individuals who are at least 55 years old during the tax year and received retirement income from employment as correctional officers, law enforcement officers, firefighters, rescue personnel, or emergency medical technicians (paramedics). The bill modifies Section 10-207(mm) of Maryland's tax code to expand this deduction, reducing taxable income for qualifying retirees. The change takes effect for tax years beginning after December 31, 2025, and applies to all eligible public safety retirees meeting the age requirement.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for public safety retirees, providing tax relief to a specific lower/middle-income group through expanded tax code modification.95% confidence

Sub-Topics Income Tax

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in committee · Maryland · House of Delegates Jan 16, 2026

HB 290: Income Tax – Cybersecurity Technology and Service Tax Credit – Alterations

HB 290 creates a refundable tax credit called the "Buy Maryland Cybersecurity Tax Credit" for Maryland businesses and nonprofits with fewer than 50 employees that purchase cybersecurity technology or services from qualifying Maryland-based cybersecurity companies. The credit covers 50% of qualifying costs, with a $50,000 annual limit per buyer and a $1 million annual cap per seller. Eligible sellers must be headquartered in Maryland, have under $10 million in annual revenue, and meet specific ownership criteria (e.g., minority-, woman-, or veteran-owned) or be located in a designated business zone. The credit expires for taxable years beginning after December 31, 2030, and is refundable if the credit exceeds the buyer's income tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit covering 50% of cybersecurity costs for small businesses, reducing tax liability and promoting local economic development under tax policy.95% confidence ✓ TechnologySupports TechnologyCreates refundable tax credit to incentivize cybersecurity purchases by small businesses, directly enhancing cybersecurity adoption per bill's purpose.90% confidence

Sub-Topics Income Tax Tax Credits Cybersecurity

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in committee · Maryland · House of Delegates Jan 27, 2026

HB 542: Earned Income Tax Credit - Individuals Without Qualifying Children - Eligibility

HB 542 expands Maryland's Earned Income Tax Credit (EITC) for low-income residents without qualifying children by raising the income level at which the credit begins to phase out. Specifically, it increases the phase-out threshold from $19,160 to higher amounts that will automatically adjust annually for inflation starting in 2026. This change directly benefits working Marylanders earning below the new phase-out limits, allowing them to retain more of their EITC. The bill modifies existing tax code (Section 10-704) to implement these higher income thresholds and annual inflation adjustments.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands EITC for low-income earners without children by raising phase-out threshold, increasing tax relief for working poor.95% confidence ✓ HousingSupports HousingExpands EITC for low-income workers, increasing disposable income to improve housing affordability without explicit housing policy language.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands EITC access for low-income workers, increasing financial support without reducing benefits, directly advancing employment income standards.90% confidence

Sub-Topics Income Tax Tax Credits

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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 · House of Delegates Jan 16, 2026

HB 133: Income Tax and Sales and Use Tax - Rate Reductions and Alterations

HB 133 reduces Maryland's individual and corporate income tax rates, with key changes to capital gains taxation. It exempts the first $10,000 of net capital gains from tax for residents aged 65 or older and removes income tax on capital gains from primary home sales (under $1.5 million), retirement accounts, and certain agricultural or conservation land. The bill also repeals the sales tax on data, information technology services, and software publishing. These changes directly affect Maryland residents and businesses subject to state income and sales tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces income tax rates for individuals/corporations and exempts capital gains for seniors, providing direct tax relief per bill summary.95% confidence ✓ TechnologySupports TechnologyRepeals sales tax on data, IT services, and software publishing, lowering costs for tech providers and indirectly supporting the technology sector.85% confidence

Sub-Topics Business Taxes Income Tax Sales Tax

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in committee · Maryland · House of Delegates Feb 2, 2026

HB 651: Tax Exemptions - Individuals Detained or Taken Hostage Abroad

HB 651 creates tax exemptions in Maryland for U.S. nationals detained or taken hostage abroad (and their spouses). It exempts their income from state income tax and waives property tax on their primary residence if the home is exclusively used by the spouse or was previously used by the detainee before their detention. The exemption applies to taxable years starting after December 31, 2025 (income tax) and June 30, 2026 (property tax). Eligibility requires federal determination under the Robert Levinson Hostage Recovery Act, with the Comptroller collaborating with the State Department to identify affected individuals.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill grants tax exemptions for detained nationals, reducing state tax revenue through income and property tax relief, aligning with tax relief indicators.95% confidence

Sub-Topics Audits & Accountability Income Tax Property Tax

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signed · Maryland · House of Delegates Apr 14, 2026

HB 478: Income Tax - Subtraction Modification for Classroom Supplies Purchased by Teachers - Alteration

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands income tax deduction for teachers, providing tax relief to prekindergarten educators without increasing government spending.95% confidence ✓ EducationSupports EducationExpands tax deduction for preK teachers' classroom supplies, supporting educator financial relief and expanding access to teacher expense benefits.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands tax deduction for prekindergarten teachers' classroom supplies, providing financial support for work-related expenses under employment benefits.90% confidence

Sub-Topics Income Tax K-12 Education Teachers

died · Maryland · House of Delegates Feb 23, 2026

HB 378: Prince George's County - Income Tax Credit for Parent and Guardian Volunteers in Elementary and Secondary Schools PG 420-26

HB 378 creates a state income tax credit for parents or legal guardians who volunteer at their child's elementary or secondary school in Prince George's County. Eligible individuals can claim a credit of $20 per volunteer hour, up to a $500 annual maximum, based on hours verified by school administrators or county board members. The credit is refundable if it exceeds the taxpayer's state income tax liability for the year. To claim the credit, applicants must submit a form to their school's administrator (for nonpublic schools) or county board representative (for public schools), and the State Department of Education will provide the necessary application and certificate forms. This policy directly affects parents and guardians volunteering in PG County public or charter schools.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable income tax credit ($20/hr up to $500) for school volunteers, providing direct tax relief to eligible families.90% confidence

Sub-Topics Income Tax Tax Credits

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signed · Maryland · House of Delegates Apr 28, 2026

HB 175: Income Tax Credit - Venison Donation - Alterations

HB 175 repeals the $300 annual limit on Maryland’s income tax credit for hunters donating processed antlerless deer meat to 501(c)(3) organizations, allowing individuals to claim up to $75 per deer processed for human consumption. It requires hunters to comply with state hunting laws and donate meat through eligible nonprofit programs, while mandating donation programs to report donor names and donation counts to the Comptroller annually. The bill directly affects hunters who process and donate antlerless deer meat to qualified nonprofits, removing a previous cap on the total credit amount. Key provisions include maintaining the $75 per deer limit, requiring donations to 501(c)(3) organizations, and adding reporting requirements for donation programs. This changes the policy by expanding access to the credit without increasing the per-deer benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals $300 annual cap on venison donation tax credit, expanding tax relief for eligible hunters through increased per-deer credit.90% confidence

Sub-Topics Audits & Accountability Income Tax Tax Credits

in committee · Maryland · Senate Jan 15, 2026

SB 151: Income Tax - Credit for Individuals Residing With and Caring for Elderly Parents

SB 151 creates a $3,000 refundable Maryland income tax credit for residents who live with and care for a parent aged 70 or older. To qualify, individuals must reside with the parent for at least six months, provide care, not be claimed as a dependent, and have income under $92,000 (single) or $143,000 (joint). The credit is refundable, meaning taxpayers can receive cash if the credit exceeds their state income tax liability. The bill takes effect for 2026 tax years and includes annual income adjustments for inflation.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit reducing tax burden for middle-income caregivers under $92k/$143k, aligning with tax relief indicators for middle/lower income.90% confidence

Sub-Topics Income Tax Tax Credits

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