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MD HB323

Bill

Official Source

Status

Introduced

1/16/2026

Primary Sponsor

Vaughn Stewart

Click for details

Origin

House of Delegates

2026 Regular Session

AI Summary

  • Creates a Maryland state income tax credit for victims of financial exploitation who were forced to make early withdrawals from retirement funds
  • Credit amount equals the lesser of: the state income tax on the early withdrawal, or the federal early withdrawal penalties paid under IRC § 72(t)
  • Eligible taxpayers must provide documentation of financial exploitation from Adult Protective Services, law enforcement, a financial institution report under the Maryland SAFE Act, or a court order
  • Taxpayers must also submit an affidavit attesting that federal tax penalties resulted from the early withdrawal due to financial exploitation
  • Unused credit cannot be carried over to future tax years; effective July 1, 2026 for taxable years beginning after December 31, 2025

Legislative Description

Income Tax - Credit for Income Taxes and Penalties Due to Financial Exploitation

Financial Institutions

Last Action

Withdrawn by Sponsor

3/9/2026

Committee Referrals

Ways and Means1/16/2026

Full Bill Text

No bill text available