MD HB1321

Creates a refundable Maryland state income tax credit for small businesses (50 or fewer employees, including sole proprietors with no employees) that incur cybersecurity-related costs

Allows up to $1,000 credit for initial cybersecurity risk assessments and implementing the resulting recommendations

Allows up to $500 credit annually for recurring cybersecurity measures including subsequent risk assessments, antivirus software, multifactor authentication, and data encryption

Requires businesses to submit proof of costs incurred with their tax return or file documentation with the Comptroller

Takes effect July 1, 2025, and applies to taxable years beginning after December 31, 2024