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MD SB163
Bill
AI Summary
- Exempts foreign earned income from Maryland's addition modification that normally requires residents to add back federally tax-exempt income to their state taxable income
- Foreign earned income qualifying for this exemption must meet the definition under Internal Revenue Code § 911(b)(1) and is subject to the limitation under IRC § 911(b)(2)
- Salary, wages, and other personal service compensation exempted by federal law or treaty from federal tax remains subject to Maryland's addition modification
- Takes effect July 1, 2026, and applies to all taxable years beginning after December 31, 2025
- Sponsored by Senators West and McCray; received favorable committee report with amendments from Budget and Taxation Committee
Legislative Description
Income Tax - Addition Modification for Federal Tax-Exempt Income - Alterations
Income Tax
Last Action
Hearing 3/24 at 1:00 p.m.
3/16/2026
Committee Referrals
Ways and Means2/18/2026
Budget and Taxation1/14/2026
Full Bill Text
No bill text available