Building Homes Act

Housing Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Delegates Solomon , Fair , Kaufman , and Shetty
Last action: 2026-05-26
Official status: Approved by the Governor - Chapter 698
Effective date: 2026-06-01

Plain English Breakdown

Checked against official source text during the last sync.

Building Homes Act

This act allows local governments in Maryland to provide tax credits for homes owned by nonprofits with agreements to keep prices affordable.

What This Bill Does

Allows the Mayor and City Council of Baltimore or other county or city leaders to create a tax credit for certain homes.
The homes must be owned by nonprofits and have an agreement to ensure affordable pricing for at least 20 years.
Sets rules on how much the tax credit can be, based on the value of the home that the homeowner is responsible for paying taxes on.
Gives local governments power to make more rules about who gets the tax credit and how to apply for it.

Who It Names or Affects

Homeowners in Baltimore City or other Maryland counties/cities with affordable housing owned by nonprofits.
Nonprofit organizations that provide mortgages or deeds of trust for affordable homes.

Terms To Know

Tax Credit: A reduction in the amount of tax a person has to pay.
Affordable Pricing: Keeping home prices low so that people with lower incomes can afford them.

Limits and Unknowns

The act only applies to homes owned by nonprofits and does not cover all types of affordable housing.
Local governments must create their own rules for the tax credit, which may vary from place to place.

Bill History

2026-05-26 Post Passage
Approved by the Governor - Chapter 698
2026-04-08 Senate
Favorable Report by Budget and Taxation
2026-03-25 Senate
Hearing 4/02 at 1:00 p.m.
2026-03-25 House
Returned Passed
2026-03-22 Senate
Third Reading Passed (34-0)
2026-03-19 Senate
Favorable Adopted
2026-03-19 Senate
Second Reading Passed
2026-03-04 House
Favorable Report by Ways and Means
2026-02-25 House
Third Reading Passed (110-10)
2026-02-24 House
Favorable Adopted Second Reading Passed
2026-02-24 Senate
Referred Budget and Taxation
2026-02-05 House
Hearing 2/17 at 1:00 p.m.
2026-02-04 House
First Reading Ways and Means
Maryland General Assembly
Text - First - Building Homes Act
Maryland General Assembly
Vote - House - Committee - Ways and Means
Maryland General Assembly
Text - Third - Building Homes Act
Maryland General Assembly
Vote - Senate - Committee - Budget and Taxation
Maryland General Assembly
Text - Chapter - Building Homes Act

Official Summary Text

Authorizing the Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation to grant, by law, a tax credit against the county or municipal corporation property tax imposed on certain dwellings that are subject to a mortgage or deed of trust provided by a nonprofit entity and a certain covenant or agreement that ensures affordable pricing of the dwelling; and applying the Act to all taxable years beginning after June 30, 2026.

Current Bill Text

Read the full stored bill text

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.
*hb0805*

HOUSE BILL 805
Q1 6lr1937

By: Delegates Solomon, Fair, Kaufman, and Shetty
Introduced and read first time: February 4, 2026
Assigned to: Ways and Means
Committee Report: Favorable
House action: Adopted
Read second time: February 24, 2026

CHAPTER ______

AN ACT concerning 1

Building Homes Act 2

FOR the purpose of authorizing the Mayor and City Council of Baltimore City or the 3
governing body of a county or municipal corporation to grant, by law, a tax credit 4
against the county or municipal corporation property tax imposed on certain 5
dwellings that are subject to a m ortgage or deed of trust provided by a nonprofit 6
entity and a certain covenant or agreement that ensures affordable pricing of the 7
dwelling; and generally relating to a property tax credit for affordable dwellings. 8

BY adding to 9
Article – Tax – Property 10
Section 9–276 11
Annotated Code of Maryland 12
(2019 Replacement Volume and 2025 Supplement) 13

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15

Article – Tax – Property 16

9–276. 17

(A) IN THIS SECTION, “DWELLING” HAS THE MEANING STATED IN § 9–105 OF 18
THIS TITLE. 19

2 HOUSE BILL 805

(B) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 1
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY GRANT, BY LAW, 2
A TAX CREDIT AGAINST THE COUNTY OR MUNICIPAL CORPORATION PROPERTY TAX 3
IMPOSED ON A DWELLING IF THE DWELLING IS SUBJECT TO: 4

(1) A MORTGAGE OR DEED O F TRUST PROVIDED BY A NONPROFIT 5
ENTITY; AND 6

(2) A COVENANT OR LEGALL Y BINDING AGREEMENT WITH A 7
DURATION OF AT LEAST 20 YEARS THAT ENFORCES INCOME AND EQUITY OR 8
APPRECIATION RESTRIC TIONS AND ENSURES AFFORDAB LE PRICING OF THE 9
DWELLING, INCLUDING ON RESALE. 10

(C) THE TAX CREDIT UNDER THIS SECTION SHALL BE IN AN AMOUNT UP TO 11
THE DIFFERENCE BETWEEN THE TAX IMPOSED ON: 12

(1) THE FULL ASSESSED VALUE OF THE DWELLING; AND 13

(2) THE PORTION OF THE VALUE OF THE DWELLING THAT THE 14
HOMEOWNER IS RESPONS IBLE FOR PAYING ON THE HOMEOWNER ’S FIRST 15
MORTGAGE OR DEED OF TRUST. 16

(D) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY OR THE 17
GOVERNING BODY OF A COUNTY OR MUNICIPAL CORPORATION MAY PROVIDE , BY 18
LAW, FOR: 19

(1) THE DURATION OF THE TAX CREDIT UNDER THIS SECTION; 20

(2) ADDITIONAL ELIGIBILITY CRITERIA FOR THE TAX CREDIT UNDER 21
THIS SECTION; 22

(3) REGULATIONS AND PROC EDURES FOR THE APPLI CATION AND 23
UNIFORM PROCESSING OF REQUESTS FOR THE TAX CREDIT; AND 24

(4) ANY OTHER PROVISION NECESSARY TO CARRY OUT THE TAX 25
CREDIT UNDER THIS SECTION. 26

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 27
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 28