Bill > HB634

This bill establishes the Income Tax Reconciliation Program in Maryland, designed to help justice-involved individuals (defined as people who have been convicted of a crime and served between 6 months and 10 years in a state or federal correctional facility) manage their income tax obligations. The program allows these individuals to create installment payment plans for unpaid income taxes from years during which they were incarcerated, and provides a waiver of all associated interest and penalties for taxable years between January 1, 2025, and December 31, 2029. The Comptroller will administer the program, working with the Department of Public Safety and Correctional Services to develop an awareness campaign and establish regulations. When a court sentences an individual to imprisonment between 6 months and 10 years, the court must inform them about this reconciliation program. The Comptroller is required to establish installment plans that allow individuals to pay their unpaid taxes over a period not exceeding 10 years and will report to the General Assembly on the program's impact annually beginning in December 2026. The law aims to reduce financial barriers for individuals transitioning back into society after incarceration by providing a structured, supportive approach to resolving tax debt.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0634?ys=2025RS