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.
HB 556 creates a property tax credit for Maryland households that spend a significant portion of their income on utilities. It allows Baltimore City or local counties to grant a credit against property taxes for "eligible individuals" who pay at least 25% of their household net income on utility services (electricity, gas, water, or internet) for their primary residence. Local governments would determine the credit amount, duration, and additional eligibility rules through their own ordinances. The credit applies to property taxes on the dwelling, not utility bills directly, and would take effect for taxable years starting after June 30, 2026.
HB 320 creates a property tax credit for Anne Arundel County landowners who sell development rights under the Rural Legacy Program. It allows the county to grant a credit against the county property tax for real property located in a designated Rural Legacy Area (as defined in Maryland’s Natural Resources Article) where the owner has sold development rights. This directly affects rural landowners participating in the Rural Legacy Program who choose to restrict future development on their land. The credit replaces an existing provision and becomes effective for tax years beginning after June 30, 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.
SB 329 (Opting in on Opportunity Act) requires Maryland’s State Department of Education to certify nonprofit organizations as scholarship granting organizations (SGOs) if they meet specific criteria, such as being organized under Maryland law and providing scholarships to eligible students. It mandates the Department to annually submit a list of certified SGOs to the U.S. Treasury starting in 2027 and directs the Comptroller to provide online guidance helping taxpayers claim federal tax credits for donations to these SGOs. The bill directly affects nonprofit scholarship organizations seeking certification and Maryland taxpayers who contribute to them. Key provisions include standardized certification rules, annual reporting requirements, and public reporting of scholarship data (e.g., numbers awarded, amounts, schools attended). It aims to align Maryland’s process with the federal tax credit program under Section 25F of the Internal Revenue Code.
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.
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.
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.
