Bill > HB930

This bill prohibits the Governor from opting into a federal tax credit program for elementary and secondary education scholarships, and it modifies Maryland's income tax rules for education-related expenses. Specifically, it adds to a taxpayer's income any employer contributions to a "Trump account" (a type of savings account for education expenses) that are excluded from an employee's federal income, and it also requires taxpayers to add back to their income any distributions from certain prepaid college contracts or investment accounts that are not used for qualified higher education expenses, with some exceptions and limitations. The bill also clarifies that "qualified higher education expenses" for these purposes do not include expenses for elementary or secondary education as defined by federal law, and it limits the subtraction for contributions to college investment plans to $2,500 per year per beneficiary, with unused amounts able to be carried over for up to 10 years. These changes are set to apply to taxable years beginning after December 31, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0930?ys=2026RS