Bill > SB859

This bill introduces several significant tax changes for Maryland residents and businesses. The legislation reduces the estate tax exemption from $5 million to $2 million for decedents dying on or after January 1, 2026, while maintaining provisions for transferring unused spousal exemptions. 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 credit amounts based on the child's age and the taxpayer's income. The bill imposes a new 2.5% business transportation fee on corporations and pass-through entities with taxable income exceeding $10 million, with revenues directed to the Transportation Trust Fund. Additionally, the legislation introduces significant changes to corporate taxation, including requiring corporations engaged in a unitary business to file combined tax returns reporting worldwide taxable income, starting for taxable years beginning after December 31, 2028. The bill also adjusts income tax rates for high-income earners and modifies how net operating losses are calculated. These changes aim to generate additional state revenue and create more comprehensive tax reporting requirements for businesses operating in Maryland.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0859?ys=2025RS