Bill > HB377

This bill creates a state income tax credit for employers in Prince George's County who provide parental engagement leave to qualified employees. A qualified employee is defined as a parent or legal guardian of a school student who uses leave to attend school-related meetings or events. The leave must be between 10 and 20 hours per employee, paid at the employee's normal wage rate, and established through a written employer policy. The tax credit amount is calculated by multiplying the employee's hourly wage rate by the number of parental engagement leave hours used, with a maximum credit of $800 per qualified employee per taxable year. To claim the credit, employers must obtain a certification form from each qualified employee, which must be signed by school officials to verify attendance at the school-related meeting or event. The State Department of Education will develop the certification form in consultation with the Comptroller. Notably, the credit is refundable, meaning if the credit exceeds the employer's state income tax for the year, the employer can claim a refund for the difference. The bill will take effect on July 1, 2025, and apply to taxable years beginning after December 31, 2024.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0377?ys=2025RS