Bill > HB880

This bill modifies how Maryland calculates income tax by decoupling from certain recent changes made to federal tax laws, specifically concerning depreciation and business interest expenses. For individuals and corporations, it adjusts their federal adjusted gross income or federal taxable income to reflect depreciation deductions as they were calculated before certain federal updates, with an exception for manufacturing entities that placed property in service after January 1, 2019. It also addresses the deduction for business interest expenses, ensuring that Maryland tax calculations do not include changes to the limitation on these deductions made after July 4, 2025. Additionally, the bill clarifies how certain heavy-duty SUVs are treated for depreciation purposes and modifies how net operating loss deductions are calculated for Maryland tax purposes. These changes are intended to align Maryland's tax code with its own established rules rather than automatically adopting all federal tax law amendments, and they will apply to tax years beginning after December 31, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0880?ys=2026RS