HB 595 modifies Maryland's income tax credit for physicians mentoring medical students in underserved areas. It removes a requirement that students must be enrolled in a Maryland medical school or training program and reduces the required hours per preceptor rotation from 100 to 90 for community-based clinical training. Licensed physicians serving as preceptors in designated healthcare shortage areas may claim a $1,000 tax credit per qualifying student rotation, capped at $10,000 annually per physician and $100,000 statewide. The bill aims to expand access to physician mentorship by broadening eligibility for the credit, directly benefiting doctors and medical training programs in regions facing healthcare workforce shortages.
SB 58 allows Baltimore City or Maryland counties to offer property tax credits to owners who convert former gas stations into retail, residential, or mixed-use properties. The credit is specifically intended to help cover costs for removing old underground gas tanks and cleaning up soil or water contamination from those tanks. Local governments can set the credit amount and duration, and the state will reimburse them 50% of the lost property tax revenue. This directly affects property owners and developers planning to redevelop former gas station sites into other commercial or housing uses.
HB 472 extends the expiration date for Maryland's theatrical production tax credit from 2027 to 2032. This credit allows theater producers to claim a reduction on their state income tax for qualifying production costs. The bill directly affects film and theater producers in Maryland who currently qualify for the credit. It modifies existing law (from 2022) to extend the credit's validity period by five additional years, ensuring the program remains active through 2032 without requiring new legislative action.
SB 247 converts Maryland's Biotechnology Investment Incentive Tax Credit into a direct grant program administered by the Department of Commerce. It replaces tax credits with cash grants for qualifying biotechnology companies engaged in research, development, or commercialization of biological technologies. The bill requires the Department to disburse grants within a specified timeframe and allows recipients to deduct these grants from their Maryland income tax for the same year. This change shifts the incentive from tax savings to immediate funding, directly affecting eligible biotech firms in Maryland.
HB 370 creates a state income tax credit for employers in Prince George’s County who provide "parental engagement leave" to qualified employees. The leave must be 10-20 hours per employee, paid at regular wage rates, and used solely for attending school-related events (e.g., parent-teacher conferences) at a public or nonpublic school in the county. Employers must obtain a certification form signed by school officials (e.g., principal and county board member) to claim the credit, which is calculated as the employee’s hourly wage multiplied by hours used, capped at $800 per employee annually. This credit directly affects PG County employers, qualified parents/guardians of school students, and school officials who verify attendance.
SB 382, the "Retire in Maryland Tax Relief Act," provides a state income tax credit for Maryland residents aged 77 or older with federal adjusted gross income under $175,000 (for individuals or certain filing statuses). The credit amount increases with age: 25% of state tax for 77-year-olds, rising to 100% for those 80 or older. Married couples filing jointly must both be 77+ to qualify for the tiered credit, and unused credit amounts cannot be carried forward to future years. The bill applies to tax years beginning after December 31, 2025, and takes effect July 1, 2026.
HB 685 allows Anne Arundel County or its municipalities to create a property tax credit for county employees who own homes within the county. The bill authorizes local governments to set eligibility rules, credit amounts, and application procedures through their own ordinances. It directly affects Anne Arundel County employees who own qualifying dwellings, reducing their local property tax burden. The credit would apply to tax years beginning after June 30, 2026, with implementation starting June 1, 2026. The bill establishes a framework but does not specify exact credit details, leaving those to local decision-making.
HB 652 creates a property tax credit for first-time homebuyers in Maryland. It defines a "first-time homebuyer" as a Maryland resident who has never owned a dwelling in any state. The bill changes how the taxable assessment is calculated for this credit: for the first year a first-time homebuyer owns a home, the credit uses the previous owner's assessment (adjusted for revaluation) instead of the new owner's current assessment. This directly affects eligible first-time homebuyers by lowering their initial property tax burden. The change applies to all taxable years beginning after June 30, 2026.
HB 511 increases Maryland's catalytic revitalization tax credit rate from 20% to 25% of eligible rehabilitation costs for qualifying projects and raises the annual credit cap from $15 million to $35 million, with annual inflation adjustments based on the Washington metropolitan area's consumer price index. It defines eligible projects as the rehabilitation of historic properties formerly owned by government or large, substantially vacant commercial properties (minimum 250,000 square feet and $50 million investment) in designated economic development areas like Main Street Maryland communities. The credit applies to individuals, nonprofits, and businesses for four consecutive years (for single-phase projects) or in full upon completion (for phased projects). This directly affects property owners and developers seeking to revitalize underutilized commercial or historic properties in targeted communities.
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.
