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MD HB694

Bill

Official Source

Status

Engrossed

4/9/2026

Primary Sponsor

Harry Bhandari

Click for details

Origin

House of Delegates

2026 Regular Session

AI Summary

  • Exempts foreign earned income (as defined under IRC § 911(b)(1)) from Maryland's addition modification that normally adds back federally tax-exempt income to state adjusted gross income
  • The exemption applies up to the limitation specified in IRC § 911(b)(2), which caps the foreign earned income exclusion amount
  • Retains the requirement to add back salary, wages, and other personal service compensation that is exempt from federal tax by law or treaty but not exempt from Maryland state tax
  • Takes effect July 1, 2026, and applies to taxable years beginning after December 31, 2025

Legislative Description

Income Tax - Addition Modification for Federal Tax-Exempt Income - Study

Income Tax

Last Action

Referred Rules

4/10/2026

Committee Referrals

Rules4/10/2026
Ways and Means2/2/2026

Full Bill Text

No bill text available