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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0903*
HOUSE BILL 903
Q3 6lr1828
CF 6lr3195
By: Delegates D. Jones, Bagnall, Behler, Chang, Moreno, and Pruski
Introduced and read first time: February 5, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Subtraction Modification – Donations to Food Banks and Other 2
Charitable Entities 3
FOR the purpose of allowing a subtraction under the Maryland income tax for donations of 4
certain food and monetary gifts made by a taxpayer during the taxable year to 5
certain charitable entities that provide food at no charge to individuals in need; and 6
generally relating to a subtraction under the Maryland income tax for dona tions of 7
food or monetary gifts to charitable entities. 8
BY repealing and reenacting, without amendments, 9
Article – Tax – General 10
Section 10–208(a) and 10–308(a) 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2025 Supplement) 13
BY adding to 14
Article – Tax – General 15
Section 10–208(dd) 16
Annotated Code of Maryland 17
(2022 Replacement Volume and 2025 Supplement) 18
BY repealing and reenacting, with amendments, 19
Article – Tax – General 20
Section 10–308(b) 21
Annotated Code of Maryland 22
(2022 Replacement Volume and 2025 Supplement) 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – Tax – General 26
2 HOUSE BILL 903
10–208. 1
(a) In addition to the modification under § 10 –207 of this subtitle, the amounts 2
under this section are subtracted from the federal adjusted gross income of a resident to 3
determine Maryland adjusted gross income. 4
(DD) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 5
MEANINGS INDICATED. 6
(II) “DONATION” MEANS AN IRREVOCABLE GIFT OF FOOD OR 7
CASH THAT IS SPECIFICALLY DESIGNATED FOR THE PURCHASE OF FOOD. 8
(III) “FOOD BANK” MEANS: 9
1. A NONPROFIT ORGANIZATION LOCATED IN THE STATE 10
THAT: 11
A. IS QUALIFIED AS TAX EXEMPT UNDER § 501(C)(3) OF 12
THE INTERNAL REVENUE CODE; AND 13
B. IS ESTABLISHED AND O PERATING PRIMARILY F OR 14
THE PURPOSE OF PROVIDING FOOD AT NO CHARGE TO INDIVIDUALS IN NEED; OR 15
2. AN ENTITY IN THE STATE THAT IS ESTABLISHED BY A 16
LOCAL GOVERNMENT OR IS A UNIT OF LOCAL GOVERNMENT THA T OPERATES 17
PRIMARILY FOR THE PURPOSE OF PROVIDING FOOD AT NO CHARGE TO INDIVIDUALS 18
IN NEED. 19
(IV) “QUALIFIED CHARITABLE ENTITY” MEANS A FOOD BANK, 20
HOMELESS SHELTER, DOMESTIC VIOLENCE SH ELTER, RELIGIOUS ORGANIZATION, 21
OR OTHER CHARITABLE ORGANIZATION THAT HA S REGISTERED WITH TH E 22
COMPTROLLER AS A DISTRIBUTOR OF FOOD THAT IS PROVIDED AT NO CHARGE TO 23
INDIVIDUALS IN NEED. 24
(2) SUBJECT TO THE LIMITA TIONS OF THIS SUBSEC TION, THE 25
SUBTRACTION ALLOWED UNDER SUBSECTION (A) OF THIS SECTION INCLUDES UP TO 26
$1,000 OF DONATIONS MADE BY A TAXPAYER DURING THE TAXABLE Y EAR TO A 27
QUALIFIED CHARITABLE ENTITY. 28
(3) TO QUALIFY FOR THE SU BTRACTION UNDER THIS SUBSECTION, 29
THE TAXPAYER SHALL FILE WITH THE TAXPAYER’S INCOME TAX RETURN: 30
HOUSE BILL 903 3
(I) THE NAME OF EACH QUA LIFIED CHARITABLE EN TITY TO 1
WHICH A DONATION WAS MADE; 2
(II) PROOF OF THE VALUE OF THE DONATION; AND 3
(III) ANY OTHER INFORMATIO N THAT THE COMPTROLLER 4
REQUIRES. 5
(4) THE COMPTROLLER SHALL ADOPT REGULATIONS TO CARRY OUT 6
THE PROVISIONS OF TH IS SUBSECTION, INCLUDING THE CRITER IA AND 7
PROCEDURES FOR REGISTRATION AS A QUALIFIED CHARITABLE ENTITY. 8
10–308. 9
(a) In addition to the modification under § 10 –307 of this subtitle, the amounts 10
under this section are subtracted from the federal taxable income of a corporation to 11
determine Maryland modified income. 12
(b) The subtraction under subsection (a) of this section includes the amounts 13
allowed to be subtracted for an individual under: 14
(1) § 10 –208(d) of this title (Enhanced agricultural management 15
equipment expenses); 16
(2) § 10–208(i) of this title (Reforestation or timber stand expenses); 17
(3) § 10–208(k) of this title (Wage expenses for targeted jobs); 18
(4) § 10–208(p) of this title (Elevator handrails in health care facilities); 19
(5) § 10–208(z) of this title (Donations to diaper banks and other charitable 20
entities); [and] 21
(6) § 10–208(bb) of this title (Trade or business expenses of a licensed or 22
registered cannabis grower, processor, dispensary, or any other cannabis establishment) ; 23
AND 24
(7) § 10–208(DD) OF THIS TITLE (DONATIONS TO FOOD BANKS AND 25
OTHER CHARITABLE ENTITIES). 26
SECTION 2. AND BE IT FURTHER ENACTED, That on or before January 1, 2029, 27
the Comptroller shall report to the General Assembly, in accordance with § 2 –1257 of the 28
State Government Article, on whether donations of food or cash that is specifically 29
designated for the purchase of food to charitable entities that provide food at no charge to 30
individuals in need have increased following the effective date of this Act and, if so, whether 31
4 HOUSE BILL 903
the subtraction modification u nder § 10–208(dd) of the Tax – General Article, as enacted 1
under Section 1 of this Act, has contributed to that increase. 2
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 3
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025, but 4
before January 1, 202 9. It shall remain effective for a period of 3 years and, at the end of 5
June 30, 2029, this Act, with no further action required by the General Assembly, shall be 6
abrogated and of no further force and effect. 7