Bill > HB1573

This bill allows individuals and married couples filing jointly to claim a credit against their state income tax for small political contributions made to a "campaign finance entity," which is defined by election law as an organization that promotes or opposes candidates, political parties, or ballot questions, or helps pay for election contests. The credit is capped at $50 for individuals and $100 for married couples filing jointly, and can only be claimed once per taxable year. Importantly, if the credit amount exceeds the taxpayer's income tax liability, the excess will be refunded to the taxpayer, making the credit "refundable." This provision is intended to encourage small political donations and will be in effect for taxable years beginning after December 31, 2025, and before January 1, 2031, with the Comptroller required to report on its usage and fiscal impact annually.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1573?ys=2026RS