HB 735 delays Maryland's Earned Income Tax Credit (EITC) Assistance Program implementation until 2029 (from 2024) and requires two key studies. The Comptroller's Office must study outreach methods to help eligible low-income residents claim the state EITC by December 31, 2030. The Department of Service and Civic Innovation must also recommend ways to assist low-income residents in claiming tax credits and accessing support. This bill directly affects Marylanders who qualify for the EITC but may not have claimed it, without changing the credit amount or eligibility rules.
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 99 modifies Maryland's rules for how municipalities can develop land after annexing it from counties. For 5 years following annexation, municipalities would no longer need county approval to develop annexed land for uses or densities (up to 50% higher) that align with the county's existing comprehensive plan recommendations. However, municipalities would still require county approval to exceed those recommended land uses or densities. This bill directly affects Maryland municipalities and counties by altering the balance of planning authority after annexation, effective October 1, 2026.
SB 265 modifies Maryland's rules for siting community solar energy systems by removing a restriction that previously prohibited multiple systems on adjacent parcels if their combined capacity exceeded 5 megawatts. The bill replaces this with a new 10-megawatt limit for adjacent parcels, but only if at least 75% of the system's capacity serves low- or moderate-income subscribers (LMI) or projects use agrivoltaics (combining solar with agriculture). This change directly affects community solar developers, utilities, and LMI subscribers by expanding where solar projects can be located while prioritizing access for underserved communities. The bill takes effect October 1, 2026.
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 543 allows landlords to charge up to two months' rent as a security deposit if a tenant operates a family child care home (defined as caring for up to eight children in a residence). It prohibits landlords from unreasonably restricting or banning such homes on single-family rental properties and shields landlords from civil liability related to the child care operation. Tenants must provide written notice 60 days before starting, share their child care registration, and supply insurance naming the landlord and property owners as additional insureds. The bill also requires tenants to notify landlords immediately if they stop operating the home and permits landlords to mandate $1 million liability insurance coverage.
This bill exempts Dorchester County from standard public notice requirements when leasing county property under specific conditions. It allows the county to enter leases with terms of five years or less and annual rents of $750 or less without publishing weekly notices in local newspapers for three weeks. The exemption directly affects Dorchester County's process for managing small-scale, low-cost property leases. This change streamlines administrative procedures for these limited agreements while maintaining notice requirements for longer or higher-cost leases.
SB 274 updates Maryland's fair housing laws to address discriminatory practices regardless of intent. It defines "discriminatory effect" as actions creating segregated housing patterns based on protected characteristics like race, disability, or sexual orientation, even without malicious intent. The bill requires housing authorities and political subdivisions to actively "affirmatively further fair housing" and prohibits practices with disparate impacts on protected groups. These changes apply to all housing providers, landlords, and government entities involved in housing decisions. The law removes intent as a defense for discriminatory housing practices, aligning enforcement with federal standards.
HB 402 establishes a Common Ownership Community Ombudsman Unit within Maryland's Attorney General's Office to handle complaints from residents of homeowners associations (HOAs), condominiums, and cooperative housing communities about final adverse decisions made by their governing bodies. The unit will monitor relevant laws, provide members with information and referrals to dispute resolution services, and either make determinations about whether decisions violate laws or refer complaints to local county commissions. The bill also requires all common ownership communities to file governing documents with the Department of Housing and Community Development and mandates the department to create a public database of these documents. Annual reports on the unit's activities, including complaint volumes and actions taken, must be submitted to the department and the General Assembly.
SB 455 establishes the Transformational Project Financing Program to help local governments fund large-scale development projects in designated areas. It allows counties or cities to apply to the Maryland Economic Development Corporation for "State-supported development district" status, requiring them to redirect property tax increases (tax increment) from these areas into a special fund instead of the general budget. This fund finances projects in priority areas like sustainable communities, transit-oriented developments, and designated enterprise zones. The bill creates new rules for calculating state revenue contributions and managing bond proceeds specifically for these designated districts.