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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*hb0547*
HOUSE BILL 547
M4, Q3 (6lr2160)
ENROLLED BILL
— Ways and Means/Budget and Taxation —
Introduced by Delegates Fair, Bouchat, Acevero, Allen, Boyce, Buckel, Hornberger,
Jacobs, Miller, Pruski, Qi, Schindler, Solomon, Tomlinson, Wims, Woods,
Wu, and Ziegler
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Income Tax – Subtraction Modification – Enhanced Agricultural Management 2
Equipment Subtraction Modification and Parent of a Stillborn Child Credit 3
FOR the purpose of altering a subtraction modification under the Maryland income tax for 4
enhanced agricultural management equipment to include equipment that requiring 5
the Secretary of Agriculture determines by regulation to qualify as , on or before a 6
certain date each year, to report to the Governor and the General Ass embly on 7
certain equipment that the Secretary recommends should qualify for the subtraction 8
modification under the Maryland income tax for enhanced agricultural management 9
equipment; and generally relating to a subtraction modification under the Maryland 10
income tax for enhanced agricultural management equipment allowing a certain 11
parent of a stillborn child a refundable credit against the State income tax for each 12
2 HOUSE BILL 547
birth for which a certain certificate has been issued; and generally relating to income 1
tax subtraction modifications and credits. 2
BY repealing and reenacting, without amendments, 3
Article – Tax – General 4
Section 10–208(a) 5
Annotated Code of Maryland 6
(2022 Replacement Volume and 2025 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Tax – General 9
Section 10–208(d) 10
Annotated Code of Maryland 11
(2022 Replacement Volume and 2025 Supplement) 12
BY adding to 13
Article – Tax – General 14
Section 10–758 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2025 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Tax – General 20
10–208. 21
(a) In addition to the modification under § 10 –207 of this subtitle, the amounts 22
under this section are subtracted from the federal adjusted gross income of a resident to 23
determine Maryland adjusted gross income. 24
(d) (1) In this subsection: 25
(i) “enhanced agricultural management equipment” means: 26
1. a planter or drill that: 27
A. is commonly known as a “no–till” planter or drill; and 28
B. is designed to minimize the disturbance of the soil in 29
planting crops; 30
2. liquid manure soil injection equipment that is designed to 31
inject manure into the soil to reduce nutrient runoff; 32
HOUSE BILL 547 3
3. a deep no –till ripper that does not invert the soil profile 1
and is used to address compaction in high residue cropping systems; 2
4. poultry or livestock manure spreading equipment used by 3
a farm owner or tenant on farmland in accordance with a nutrient management plan 4
prepared by an individual licensed by the Secretary of Agriculture in accordance with Title 5
8, Subtitle 8 of the Agriculture Article if the manure spreading equipment is used: 6
A. to spread poultry manure and bedding from normal 7
poultry production with a capability of being calibrated to 1 ton per acre; or 8
B. to apply solid or liquid livestock waste; 9
5. vertical tillage equipment used to incorporate livestock 10
manure or poultry litter into the soil; 11
6. a global positioning system device used for management of 12
agricultural nutrient applications; [and] 13
7. an integrated optical sensing and nutrient application 14
system that measures crop status and applies the crop’s nitrogen requirements at variable 15
rates based on predicted in –season yield potential for the crop and the predicted 16
responsiveness of the crop to additional nitrogen; and 17
8. OTHER EQUIPMENT THAT THE SECRETARY OF 18
AGRICULTURE DETERMINE S BY REGULATION TO Q UALIFY AS ENHANCED 19
AGRICULTURAL MANAGEMENT EQUIPMENT; AND 20
(ii) “enhanced agricultural management equipment” includes 21
equipment that attaches to or is pulled by equipment listed in item (i) of this paragraph. 22
(2) Except as provided in paragraph (3) of this subsection, the subtraction 23
under subsection (a) of this section includes 100% of the expenses that a taxpayer incurs to 24
buy and install enhanced agricultural management equipment if: 25
(i) the equipment has a useful life of at least 4 years; 26
(ii) the taxpayer: 27
1. bought the equipment: 28
A. after December 31, 1985, if the equipment is a planter or 29
drill; 30
B. after December 31, 1989, if the equipment is liquid 31
manure soil injection equipment; 32
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C. after December 31, 1997, if the equipment is poultry or 1
livestock manure spreading equipment; 2
D. after December 31, 2001, if the equipment is a deep no–till 3
ripper that does not invert the soil profile; or 4
E. after December 31, 2012, if the equipment is a global 5
positioning system device used for management of agricultural nutrient applications or an 6
integrated optical sensing and nutrient application system; 7
2. owns the equipment for at least 3 years after the taxable 8
year in which the subtraction is made; and 9
3. uses the equipment in agricultural production; and 10
(iii) for liquid manure soil injection equipment, the equipment is: 11
1. used on land upon which farm products, as defined under 12
§ 10–601 of the Agriculture Article, are raised; and 13
2. not used to inject sludge into the soil. 14
(3) The subtraction under subsection (a) of this section includes 50% of the 15
expenses that a taxpayer incurs to buy and install enhanced agricultural management 16
equipment that is vertical tillage equipment used to incorporate livestock manure or 17
poultry litter into the soil if: 18
(i) the equipment has a useful life of at least 4 years; and 19
(ii) the taxpayer: 20
1. bought the equipment after December 31, 2012; 21
2. owns the equipment for at least 3 years after the taxable 22
year in which the subtraction is made; and 23
3. uses the equipment in agricultural production. 24
(4) To qualify for the subtraction under paragraphs (2) and (3) of this 25
subsection, a taxpayer shall file a statement from the Department of Agriculture certifying 26
compliance with the requirements of this section. 27
(5) If t he subtraction allowed under paragraphs (2) and (3) of this 28
subsection exceeds the Maryland taxable income that is computed without the modification 29
allowed under this subsection and the subtraction is not used for the taxable year, the 30
HOUSE BILL 547 5
excess may be carri ed over to succeeding taxable years, not to exceed 5, until the full 1
amount of the subtraction is used. 2
(6) THE ON OR BEFORE DECEMBER 1, 2026, AND EACH DECEMBER 1 3
THEREAFTER, THE SECRETARY OF AGRICULTURE MAY ADOPT REGULATION S TO 4
ESTABLISH SHALL REPORT TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 5
OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON ADDITIONAL 6
TYPES OF EQUIPMENT T HAT THE SECRETARY RECOMMENDS SHOULD QUALIFY AS 7
ENHANCED AGRICULTURAL MANAGEMENT EQUIPMENT UNDER PARAGRAPH (1)(I)8 8
OF THIS SUBSECTION. 9
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 10
as follows: 11
Article – Tax – General 12
10–758. 13
(A) SUBJECT TO THE LIMITATIONS OF THIS SECTION, A TAXPAYER WHO IS A 14
PARENT OF A STILLBORN CHILD MAY CLAIM A CREDIT AGAINST THE STATE INCOME 15
TAX IN AN AMOUNT EQU AL TO $1,000 FOR EACH BIRTH FOR W HICH A CERTIFICATE 16
OF BIRTH RESULTING I N STILLBIRTH HAS BEE N ISSUED UNDER § 4–213.1 OF THE 17
HEALTH – GENERAL ARTICLE OR FOR WHICH A CERTIFICATE OF FET AL DEATH OR 18
ITS EQUIVALENT HAS BEEN ISSUED BY ANOTHER STATE. 19
(B) THE AMOUNT OF THE CRE DIT SHALL BE REDUCED BY $50 FOR EACH 20
$1,000, OR FRACTION THEREOF , BY WHICH THE TAXPAYE R’S FEDERAL ADJUSTED 21
GROSS INCOME EXCEEDS: 22
(1) $100,000 IN THE CASE OF AN INDIVIDUAL; OR 23
(2) $150,000 IN THE CASE OF A MARRIED CO UPLE FILING A JOINT 24
INCOME TAX RETURN. 25
(C) THE CREDIT ALLOWED UNDER THIS SECTION MAY BE CLAIMED ONLY FOR 26
THE TAXABLE YEAR IN WHICH THE STILLBIRTH OCCURRED. 27
(D) IF THE CREDIT ALLOWED UNDER THIS SECTION I N ANY TAXABLE YEAR 28
EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR , THE TAXPAYER MAY 29
CLAIM A REFUND IN THE AMOUNT OF THE EXCESS. 30
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 31
applicable to all taxable years beginning after December 31, 2026. 32
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SECTION 2. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
July 1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.