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MD HB690

MD HB690
Corporate Income Tax - Rate Reduction (Economic Competitiveness Act of 2026)


summary

Introduced
02/02/2026
In Committee
02/02/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Decreasing, over 4 taxable years, the State corporate income tax rate from 8.25% to 6.25%.

AI Summary

This bill, titled the "Economic Competitiveness Act of 2026," proposes to gradually reduce Maryland's corporate income tax rate from its current 8.25% to 6.25% over a period of four taxable years, starting with tax years beginning after December 31, 2025. Specifically, the rate will decrease incrementally each year: to 7.75% for tax years beginning after December 31, 2026, then to 7.25% for tax years beginning after December 31, 2027, followed by 6.75% for tax years beginning after December 31, 2028, and finally reaching 6.25% for tax years beginning after December 31, 2029. This change aims to make the state more economically competitive by lowering the tax burden on corporations. The Act is scheduled to take effect on July 1, 2026.

Committee Categories

Budget and Finance

Sponsors (27)

Last Action

House Ways and Means Hearing (13:00:00 2/19/2026 ) (on 02/19/2026)

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