Bill > HB1014

This bill proposes several significant changes to Maryland's tax code, covering areas such as estate tax, income tax, and business taxation. Specifically, the bill reduces the estate tax exemption from $5 million to $2 million for decedents dying on or after January 1, 2026, while maintaining the ability to use deceased spousal unused exclusion amounts. It modifies the child tax credit by expanding the definition of a qualified child to include children under 18 years old (previously under 6 or under 17 with a disability) and adjusting the credit amounts based on the child's age and the taxpayer's income. The bill introduces a new business transportation fee of 2.5% on corporations and pass-through entities with taxable income exceeding $10 million, with the revenue directed to the Transportation Trust Fund. Additionally, it implements changes to corporate tax reporting by requiring combined group tax returns for unitary businesses starting in 2029, which aims to more comprehensively capture the income of interconnected business entities. The bill also makes adjustments to income tax rates, introduces a new tax on pass-through entity income exceeding $1 million, and modifies how net operating losses are calculated. Most provisions are set to take effect at different stages between 2025 and 2029, allowing businesses and taxpayers time to adapt to the new regulations.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1014?ys=2025RS