MD SB805

Changes the recapture provision so that only the unused portion of the Student Loan Debt Relief Tax Credit must be repaid if the credit is not applied to student loans within 3 years, rather than the total amount previously required

Authorizes the Maryland Higher Education Commission to grant extensions of the 3-year repayment deadline for individuals who could not use their credit due to federal loan program disruptions

Extension eligibility includes forbearance related to SAVE plan litigation, inability to change income-based repayment plans due to U.S. Department of Education understaffing, or forbearance while awaiting Public Service Loan Forgiveness Buyback agreements

Requires the Commission to adopt procedures for the extension waiver application process by October 1, 2026

Takes effect July 1, 2026, applicable to tax years beginning after December 31, 2025