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Bill > SB987
MD SB987
MD SB987Corporate Income Tax - Addition Modification - Direct-to-Consumer Pharmaceutical Advertising
summary
Introduced
02/15/2026
02/15/2026
In Committee
03/04/2026
03/04/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Providing an addition modification under the corporate income tax for the amount of certain direct-to-consumer advertising expenses for certain covered drugs paid or incurred during the taxable year that are deducted under the Internal Revenue Code; providing for the distribution of revenue attributable to the addition modification; etc.
AI Summary
This bill modifies Maryland's corporate income tax by adding back certain direct-to-consumer advertising expenses for "covered drugs" – which are defined as prescription drug products or compounded drugs – to a corporation's federal taxable income when calculating its state modified income. This means companies will pay state income tax on these advertising expenses, which they might have otherwise deducted. The revenue generated from this change will be distributed: the first $5 million will go to the Maryland Department of Health for Medicaid eligibility operations, and the remaining revenue will be sent to the Maryland Health Benefit Exchange Fund. This fund is specifically designated to support health insurance subsidy programs, aiming to improve the affordability of health insurance coverage for Maryland residents.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Senate Budget and Taxation Hearing (13:00:00 3/11/2026 ) (on 03/11/2026)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0987?ys=2026RS |
| BillText | https://mgaleg.maryland.gov/2026RS/bills/sb/sb0987f.pdf |
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