Maryland’s New Tax Relief Legislation
** Tax Relief For All Retirees. The Retirement Tax Reduction Act will eliminate 100% of state retirement taxes in Maryland. Tax relief is phased in over time using an income exclusion, and begins in tax year 2022. In past years, the governor has been successful in enacting retirement tax relief for law enforcement and first responders, as well as military veterans, but to date the legislature has failed to act on broad-based relief for retirees.
** Small Business Fee Relief. The governor will also propose legislation to eliminate the filing fees for businesses that submit their annual report online with the Maryland State Department of Assessments and Taxation (SDAT), including the $300 annual filing fee for companies, LLCs, and other legal entities, and $100 for family farms. This would make Maryland the first state in the country to provide a zero-fee option for all businesses for this type of filing.
Expansion of Manufacturing Incentives. The More Jobs for Marylanders Act 3.0 extends the More Jobs for Marylanders program an additional five years, through 2027. The More Jobs for Marylanders program provides tax incentives to new and existing manufacturers that locate or expand in Maryland and create new manufacturing jobs and to non-manufacturers that locate or expand in Maryland Opportunity Zones.
Long-Term Economic Development. The Project Restore Act will codify and make permanent one of the state’s successful COVID-19 economic recovery initiatives, which provides financial assistance for small businesses and commercial developers to revitalize vacant retail and commercial space.