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HB1080 • 2026

Income Tax - Addition Modifications - Excluded Opportunity Fund Gains, Foreign-Derived Deduction Eligible Income, and Interest

Income Tax - Addition Modifications - Excluded Opportunity Fund Gains, Foreign-Derived Deduction Eligible Income, and Interest

Taxes
Passed Legislature

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

Sponsor
Delegate Solomon
Last action
2026-02-10
Official status
In the House - Hearing 2/26 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.

Income Tax - Addition Modifications - Excluded Opportunity Fund Gains, Foreign-Derived Deduction Eligible Income, and Interest

Prohibiting the Governor, on or after July 4, 2025, from nominating a census tract for designation as a qualified opportunity zone; providing an addition modification under the Maryland income tax for the capital gains from certain qualified opportunity funds; providing an addition modification under the Maryland corporate income tax for certain foreign-derived deduction eligible income and the amount of interest paid on loans that secure certain rural property; etc.

What This Bill Does

  • Prohibiting the Governor, on or after July 4, 2025, from nominating a census tract for designation as a qualified opportunity zone; providing an addition modification under the Maryland income tax for the capital gains from certain qualified opportunity funds; providing an addition modification under the Maryland corporate income tax for certain foreign-derived deduction eligible income and the amount of interest paid on loans that secure certain rural property; etc.

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

  1. 2026-02-10 House

    First Reading Ways and Means

  2. 2026-02-10 House

    Hearing 2/26 at 1:00 p.m.

  3. Maryland General Assembly

    Text - First - Income Tax - Addition Modifications - Excluded Opportunity Fund Gains, Foreign-Derived Deduction Eligible Income, and Interest

Official Summary Text

Prohibiting the Governor, on or after July 4, 2025, from nominating a census tract for designation as a qualified opportunity zone; providing an addition modification under the Maryland income tax for the capital gains from certain qualified opportunity funds; providing an addition modification under the Maryland corporate income tax for certain foreign-derived deduction eligible income and the amount of interest paid on loans that secure certain rural property; etc.

Current Bill Text

Read the full stored bill text 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1080*

HOUSE BILL 1080
Q3 6lr3448

By: Delegate Solomon
Introduced and read first time: February 10, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Addition Modifications – Excluded Opportunity Fund Gains, 2
Foreign–Derived Deduction Eligible Income, and Interest 3

FOR the purpose of prohibiting the Governor from nominating a census tract for 4
designation as a qualified oppo rtunity zone; providing an addition modification 5
under the Maryland income tax for the capital gains from certain qualified 6
opportunity funds; providing an addition modification under the Maryland corporate 7
income tax for certain foreign–derived deduction eligible income and the amount of 8
interest paid on loans that secure certain rural property; and generally relating to 9
the effect of amendments to the Internal Revenue Code on the Maryland income tax. 10

BY adding to 11
Article – State Government 12
Section 3–309 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15

BY repealing and reenacting, without amendments, 16
Article – Tax – General 17
Section 10–204(a) and 10–305(a) 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2025 Supplement) 20

BY adding to 21
Article – Tax – General 22
Section 10–204(m) and 10–305(e) and (f) 23
Annotated Code of Maryland 24
(2022 Replacement Volume and 2025 Supplement) 25

BY repealing and reenacting, with amendments, 26
Article – Tax – General 27
2 HOUSE BILL 1080

Section 10–305(d) 1
Annotated Code of Maryland 2
(2022 Replacement Volume and 2025 Supplement) 3

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5

Article – State Government 6

3–309. 7

ON OR AFTER JULY 4, 2025, THE GOVERNOR MAY NOT NOMINATE A CENSUS 8
TRACT FOR DESIGNATIO N AS A QUALIFIED OPP ORTUNITY ZONE UNDER § 1400Z–1 9
OF THE INTERNAL REVENUE CODE. 10

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 11
as follows: 12

Article – Tax – General 13

10–204. 14

(a) To the extent excluded from federal adjusted gross income, the amounts under 15
this section are added to the federal adjusted gross income of a resident to determine 16
Maryland adjusted gross income. 17

(M) THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES ANY 18
CAPITAL GAINS EXCLUDED UNDER § 1400Z–2 OF THE INTERNAL REVENUE CODE AS 19
A RESULT OF AMENDMENTS TO THAT SECTION BY § 70421 OF PUBLIC LAW 119–21. 20

10–305. 21

(a) To the extent excluded from federal taxable income, the amounts under this 22
section are added to the federal taxable income of a corporation to determine Maryland 23
modified income. 24

(d) The addition under subsection (a) of this section includes the additions 25
required for an individual under: 26

(1) § 10–204(b) of this title (Dividends and int erest from another state or 27
local obligation); 28

(2) § 10–204(c)(2) of this title (Federal tax–exempt income); 29

(3) § 10–204(e) of this title (Oil percentage depletion allowance); 30

HOUSE BILL 1080 3

(4) § 10 –204(i) of this title (Deduction for qualified production acti vities 1
income); 2

(5) § 10 –204(j) of this title (Deduction for costs for security clearance 3
administrative expenses and construction and equipment costs incurred to construct or 4
renovate a sensitive compartmented information facility); [and] 5

(6) § 10–204(l) of this title (Deduction for donations to qualified permanent 6
endowment funds); AND 7

(7) § 10–204(M) OF THIS TITLE (CAPITAL GAINS EXCLUDE D FOR 8
INVESTMENT IN OPPORTUNITY ZONES). 9

(E) THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES ANY 10
AMOUNT OF FOREIGN –DERIVED DEDUCTION EL IGIBLE INCOME ALLOWE D AS A 11
DEDUCTION UNDER § 250 OF THE INTERNAL REVENUE CODE. 12

(F) THE ADDITION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES ANY 13
AMOUNT OF INTEREST E XCLUDED UNDER § 139L OF THE INTERNAL REVENUE 14
CODE. 15

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2026, and Section 2 of this Act shall be applicable to all taxable years beginning after 17
December 31, 2025. 18