MD SB859

Reduces the Maryland estate tax exclusion from $5,000,000 to $2,000,000 for decedents dying on or after January 1, 2026, and caps the estate tax credit at 16% of the taxable estate exceeding $2,000,000

Increases individual income tax rates for high earners: 6% on income $250,001-$500,000 (single) or $300,001-$600,000 (joint), 6.5% on income up to $1,000,000/$1,200,000, and 7% above those thresholds; adds a 1% tax on net investment income for individuals with federal AGI over $350,000

Imposes a 2.5% "business transportation fee" on corporations and pass-through entities with Maryland taxable income exceeding $10,000,000 for tax years 2027-2032, with revenue directed to the Transportation Trust Fund

Expands the Maryland child tax credit to include dependents under age 18 (up from age 6), sets credit at $750 for children under 6 and $500 for ages 6-17, with phase-outs beginning at $65,000 for joint filers and $45,000 for single filers

Requires corporations engaged in unitary businesses to file combined income tax returns beginning in tax year 2029, and limits net operating loss deductions to $500,000 annually for tax years 2027-2031