HB0690 • 2026

Corporate Income Tax - Rate Reduction (Economic Competitiveness Act of 2026)

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Delegates Hartman , Adams , Anderson , Arentz , Arikan , Baker , Beauchamp , Buckel , Chisholm , Ciliberti , Grammer , Griffith , Hornberger , Jacobs , Mangione , Metzgar , Miller , T. Morgan , Nkongolo , Pippy , Reilly , Rose , Schmidt , Stonko , Szeliga , Tomlinson , and Valentine
Last action: 2026-02-03
Official status: In the House - Hearing 2/19 at 1:00 p.m.
Effective date: 2026-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Corporate Income Tax - Rate Reduction (Economic Competitiveness Act of 2026)

Decreasing, over 4 taxable years, the State corporate income tax rate from 8.25% to 6.25%.

What This Bill Does

Decreasing, over 4 taxable years, the State corporate income tax rate from 8.25% to 6.25%.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-02-03 House
Hearing 2/19 at 1:00 p.m.
2026-02-02 House
First Reading Ways and Means
Maryland General Assembly
Text - First - Corporate Income Tax - Rate Reduction (Economic Competitiveness Act of 2026)

Official Summary Text

Decreasing, over 4 taxable years, the State corporate income tax rate from 8.25% to 6.25%.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0690*

HOUSE BILL 690
Q3 6lr2404
HB 1101/25 – W&M
By: Delegates Hartman, Adams, Anderson, Arentz, Arikan, Baker, Beauchamp,
Buckel, Chisholm, Ciliberti, Grammer, Griffith, Hornberger, Jacobs,
Mangione, Metzgar, Miller, T. Morgan, Nkongolo, Pippy, Reilly, Rose,
Schmidt, Stonko, Szeliga, Tomlinson, and Valentine
Introduced and read first time: February 2, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Corporate Income Tax – Rate Reduction 2
(Economic Competitiveness Act of 2026) 3

FOR the purpose of altering, over a certain period of years, the State income tax rate on 4
the Maryland taxable income of corporations; and generally relating to the Maryland 5
corporate income tax. 6

BY repealing and reenacting, with amendments, 7
Article – Tax – General 8
Section 10–105(b) 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Tax – General 14

10–105. 15

(b) The State income tax rate for a [corporation is 8.25% of Maryland taxable 16
income] CORPORATION’S MARYLAND TAXABLE INCOME IS: 17

(1) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2025, 18
BUT BEFORE JANUARY 1, 2027, 8.25%; 19

(2) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2026, 20
2 HOUSE BILL 690

BUT BEFORE JANUARY 1, 2028, 7.75%; 1

(3) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2027, 2
BUT BEFORE JANUARY 1, 2029, 7.25%; 3

(4) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2028, 4
BUT BEFORE JANUARY 1, 2030, 6.75%; AND 5

(5) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 2029, 6
6.25%. 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
1, 2026. 9