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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0370*
HOUSE BILL 370
Q3, F1, F3 6lr1076
HB 377/25 – W&M
By: Prince George’s County Delegation
Introduced and read first time: January 19, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Prince George’s County – Income Tax – Credit for Employers Providing 2
Parental Engagement Leave 3
PG 419–26 4
FOR the purpose of allowing employers in Prince George’s County who provide certain 5
parental engagement leave to certain qualified employees during the taxable year a 6
credit against the State income tax; requiring the State Department of Education, in 7
consultation with the Comptroller, to develop and make available a certain 8
certification form; requiring a certain qualified employee to obtain the signatures of 9
a certain Prince George’s County Board of Education member and certain Prince 10
George’s County scho ol personnel under certain circumstances; making the credit 11
refundable under certain circumstances; and generally relating to a credit against 12
the State income tax for employers in Prince George’s County who provide parental 13
engagement leave to qualified employees. 14
BY adding to 15
Article – Tax – General 16
Section 10–758 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2025 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Tax – General 22
10–758. 23
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 24
2 HOUSE BILL 370
INDICATED. 1
(2) “COUNTY BOARD ” MEANS THE PRINCE GEORGE’S COUNTY 2
BOARD OF EDUCATION. 3
(3) “PARENTAL ENGAGEMENT L EAVE” MEANS LEAVE AWAY FRO M 4
WORK PROVIDED IN ACCORDANCE WITH SUBSECTION (C) OF THIS SECTION. 5
(4) “QUALIFIED EMPLOYEE” MEANS AN INDIVIDUAL WHO: 6
(I) 1. IS THE PARENT OF A SCHOOL STUDENT; OR 7
2. HAS LEGAL CUSTODY OF A SCHOOL STUDENT AS A 8
LEGAL GUARDIAN; AND 9
(II) USES PARENTAL ENGAGE MENT LEAVE IN ACCORD ANCE 10
WITH AN EMPLOYER POLICY. 11
(5) “SCHOOL” MEANS A PUBLIC OR NO NPUBLIC ELEMENTARY O R 12
SECONDARY SCHOOL IN PRINCE GEORGE’S COUNTY, INCLUDING A CHARTER 13
SCHOOL. 14
(B) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, AN EMPLOYER IN 15
PRINCE GEORGE’S COUNTY THAT PROVIDES PARENTAL ENGAGEMENT LEAVE TO 16
ITS EMPLOYEES DURING THE TAXABLE YEAR IN ACCORDANCE WITH SUBSECTION (C) 17
OF THIS SECTION MAY CLAIM A CREDIT AGAINST THE STATE INCOME TAX: 18
(1) IN THE AMOUNT CALCUL ATED UNDER SUBSECTIO N (D) OF THIS 19
SECTION; AND 20
(2) AFTER ATTACHING THE CERTIFICATION FORM REQUIRED UNDER 21
SUBSECTION (E) OF THIS SECTION TO THE INCOME TAX RETURN OF THE EMPLOYER. 22
(C) (1) SUBJECT TO PARAGRAPH (2) OF THI S SUBSECTION , ANY 23
PARENTAL ENGAGEMENT LEAVE PROVIDED UNDER THIS SECTION SHALL BE: 24
(I) PROVIDED AT THE DISCRETION OF AN EMPLOYER FOR THE 25
BENEFIT OF A QUALIFIED EMPLOYEE OF THE EMPLOYER; 26
(II) USED FOR ALLOWING TH E QUALIFIED EMPLOYEE TO 27
ATTEND SCHOOL–RELATED MEETINGS OR EVENTS AT THE SCHOOL IN WHICH THE 28
STUDENT OF THE QUALIFIED EMPLOYEE IS ENROLLED; 29
HOUSE BILL 370 3
(III) ESTABLISHED BY WRITTEN POLICY; 1
(IV) AT LEAST 10 BUT NOT MORE THAN 20 HOURS OF LEAVE PER 2
QUALIFIED EMPLOYEE; 3
(V) PAID AT THE SAME WAG E R ATE AS THE QUALIFIED 4
EMPLOYEE NORMALLY EARNS; AND 5
(VI) SUPPLEMENTAL TO , WITHOUT SUPPLANTING , ANY OTHER 6
LEAVE OR BENEFITS PROVIDED BY THE EMPLOYER TO THE QUALIFIED EMPLOYEE. 7
(2) AN EMPLOYER THAT PROV IDES PARENTAL ENGAGEMENT LEAVE 8
UNDER THIS SUBSECTION SHALL PROHIBIT: 9
(I) A QUALIFIED EMPLOYEE FROM EXHAUSTING THE 10
QUALIFIED EMPLOYEE ’S ENTIRE LEAVE BALAN CE IN FEWER THAN THR EE 11
OCCURRENCES OF LEAVE USAGE; AND 12
(II) THE TRANSFER OF HOUR S OF PARENTAL ENGAGE MENT 13
LEAVE BETWEEN EMPLOYEES. 14
(D) (1) (I) SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE 15
AMOUNT OF THE CREDIT UNDER THIS SECTION S HALL BE THE PRODUCT OF A 16
QUALIFIED EMPLOYEE ’S HOURLY WAGE RATE A ND THE NUMBER OF PAR ENTAL 17
ENGAGEMENT LEAVE HOU RS USED BY THE QUALI FIED EMPLOYEE DURING THE 18
TAXABLE YEAR. 19
(II) THE HOURLY WAGE RATE FOR A SALARIED EMPLO YEE 20
SHALL BE DETERMINED BASED ON THE MINIMUM WEEKLY NUMBER OF HOURS THAT 21
THE QUALIFIED EMPLOY EE IS REQUIRED TO WO RK UNDER THE QUALIFI ED 22
EMPLOYEE’S HIRING AGREEMENT. 23
(2) FOR ANY TAXABLE YEAR: 24
(I) AN EMPLOYER MAY CLAI M THE CREDIT FOR MOR E THAN 25
ONE QUALIFIED EMPLOY EE, REGARDLESS OF WHETHE R ANOTHER QUALIFIED 26
EMPLOYEE HAS USED PA RENTAL ENGAGEMENT LE AVE FOR THE SAME STU DENT; 27
AND 28
(II) THE AGGREGATE AMOUNT OF THE CREDIT ALLOWED UNDER 29
THIS SECTION M AY NOT EXCEED $800 FOR EACH QUALIFIED E MPLOYEE OF AN 30
EMPLOYER. 31
4 HOUSE BILL 370
(3) AN EMPLOYER MAY NOT C LAIM THE CREDIT FOR A QUALIFIED 1
EMPLOYEE WHO HAS NOT WORKED AT LEAST 30 DAYS DURING THE TAXABLE YEAR 2
FOR THE EMPLOYER. 3
(E) (1) TO RECEIVE THE CREDIT UNDER THIS SEC TION, AN EMPLOYER 4
SHALL: 5
(I) OBTAIN FROM EACH QUALIFIED EMPLOYEE FOR WHOM THE 6
CREDIT IS SOUGHT A CERTIFICATION FORM UNDER THIS SUBSECTION; AND 7
(II) ATTACH EACH CERTIFIC ATION FORM TO THE IN COME TAX 8
RETURN OF THE EMPLOYER. 9
(2) THE STATE DEPARTMENT OF EDUCATION SHALL , IN 10
CONSULTATION WITH TH E COMPTROLLER, DEVELOP AND MAKE AVA ILABLE A 11
CERTIFICATION FORM TO BE USED IN ACCORDA NCE WITH PARAGRAPH (3) OF THIS 12
SUBSECTION. 13
(3) (I) AS A CONDITION OF USING PARENTAL ENGAGEMENT LEAVE 14
UNDER THIS SECTION, A QUALIFIED EMPLOYEE SHALL AGREE TO OBTAIN FROM THE 15
APPROPRIATE SCHOOL O FFICIALS PROOF OF AT TENDING THE SCHOOL –RELATED 16
MEETING OR EVENT FOR WHICH THE LEAVE IS U SED BY SUBMITTING TH E 17
CERTIFICATION FORM TO: 18
1. IF THE STUDENT OF TH E QUALIFIED EMPLOYEE IS 19
ENROLLED IN A PUBLIC S CHOOL, THE SCHOOL PRINCIPAL AND COUNTY BOARD 20
MEMBER WHO REPRESENTS THE SCHOOL; OR 21
2. IF THE STUDENT OF TH E QUALIFIED EMPLOYEE IS 22
ENROLLED IN A NONPUB LIC SCHOOL , THE SCHOOL PRINCIPAL AND ANOTHER 23
ADMINISTRATOR OF THE SCHOOL. 24
(II) A COUNTY BOARD MEMBER OR SCHOOL PRINCIPAL OR 25
ADMINISTRATOR SHALL PROMPTLY SIGN AND RETURN A CERTIFICATION FORM TO A 26
QUALIFIED EMPLOYEE WHO ATTENDS A SCHOOL–RELATED MEETING OR EVENT. 27
(III) A QUALIFIED EMPLOYEE S HALL PROMPTLY RETURN A 28
SIGNED CERTIFICATION FORM TO THE QUALIFIED EMPLOYEE’S EMPLOYER. 29
(F) IF THE CREDIT ALLOWED UNDER THIS SECTION IN ANY TAXABLE YEAR 30
EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR, THE EMPLOYER MAY 31
CLAIM A REFUND IN THE AMOUNT OF THE EXCESS. 32
HOUSE BILL 370 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 2