Income Tax - Senior Tax Credit - Refundability

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0745*

HOUSE BILL 745
Q3 6lr2209

By: Delegates Mireku–North, Fair, Pasteur, Roberson, Tomlinson, Woorman, Wu,
and Ziegler
Introduced and read first time: February 4, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Senior Tax Credit – Refundability 2

FOR the purpose of making a certain credit against the State income tax for certain 3
residents who are at least a certain age refundable; and generally relating to an 4
income tax credit for seniors. 5

BY repealing and reenacting, with amendments, 6
Article – Tax – General 7
Section 10–754 8
Annotated Code of Maryland 9
(2022 Replacement Volume and 2025 Supplement) 10

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12

Article – Tax – General 13

10–754. 14

(a) In this section, “eligible taxpayer” means a resident who, on the last day of the 15
taxable year, is at least 65 years old. 16

(b) Except as provided in subsection (c) of this section [and subject to subsection 17
(d) of this section], an eligible taxpayer may claim a credit against the State income tax in 18
an amount equal to: 19

(1) $1,000 for an eligible taxpayer, other than an individual described 20
under item (2) of this subsection, whose federal adjusted gross income does not exceed 21
$100,000; or 22
2 HOUSE BILL 745

(2) for spouses filing a joint return or for a surviving spouse or head of 1
household as defined in § 2 of the Internal Revenue Code whose federal adjusted gross 2
income does not exceed $150,000: 3

(i) except as provided in item (ii) of this item, $1,750; or 4

(ii) if only one of the individuals filing the joint return is an eligible 5
taxpayer, $1,000. 6

(c) For a taxable year in whic h the September General Fund estimate for the 7
current fiscal year in the September Board of Revenue Estimates report issued during the 8
taxable year is more than 3.75% below the March General Fund estimate for the current 9
fiscal year in the March Board of Revenue Estimates report issued in the taxable year, the 10
amount of the credit allowed under subsection (b) of this section is limited to: 11

(1) $500 for an eligible taxpayer, other than an individual described under 12
item (2) of this subsection, whose federal adjusted gross income is at least $50,000 but does 13
not exceed $100,000; or 14

(2) for spouses filing a joint return or for a surviving spouse or head of 15
household as defined in § 2 of the Internal Revenue Code whose federal adjusted gross 16
income is at least $100,000 but does not exceed $150,000: 17

(i) except as provided in item (ii) of this item, $875; or 18

(ii) if only one of the individuals filing the joint return is an eligible 19
taxpayer, $500. 20

(d) If the credit allowed under this section in [any] A taxable year exceeds the 21
State income tax for that taxable year, the [unused amount of the credit may not be carried 22
over to any other taxable year ] ELIGIBLE TAXPAYER MAY CLAIM A REFUND IN THE 23
AMOUNT OF THE EXCESS. 24

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 26