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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1521*
HOUSE BILL 1521
Q3 6lr3272
By: Delegates Ruff, Addison, Conaway, Fair, Fennell, J. Long, Martinez, Simmons,
Smith, Spiegel, Stinnett, Wells, Wolek, Wu, and Young
Introduced and read first time: February 13, 2026
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Credit for Contributions, Volunteerism, and Employment 2
Initiatives for At–Risk Youth 3
FOR the purpose of allowing a credit against the State income tax for certain contributions 4
to organizations that support at –risk you th, volunteering at certain schools and 5
recreation centers, and employing certain at –risk youth; and generally relating to 6
income tax credits for supporting at–risk youth. 7
BY adding to 8
Article – Tax – General 9
Section 10–758 10
Annotated Code of Maryland 11
(2022 Replacement Volume and 2025 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Tax – General 15
10–758. 16
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(2) “APPLICABLE ZIP CODE” MEANS: 19
(I) A ZIP CODE DESIGNATED AS A HIGH –CRIME OR 20
HIGH–POVERTY AREA; OR 21
2 HOUSE BILL 1521
(II) A ZIP CODE IN BALTIMORE CITY OR BALTIMORE COUNTY. 1
(3) “AT–RISK YOUTH” MEANS AN INDIVIDUAL AT LEAST 12 YEARS OLD 2
AND UNDER THE AGE OF 25 YEARS OLD WHO: 3
(I) IS DESIGNATED AS CHRONICALLY ABSENT OR HAS DROPPED 4
OUT OF SCHOOL; 5
(II) IS INVOLVED IN THE JUVENILE JUSTICE SYSTEM; 6
(III) IS INVOLVED IN AN AT –RISK YOUTH PREVENTIO N OR 7
DIVERSION PROGRAM, AS DEFINED IN § 8–601 OF THE HUMAN SERVICES ARTICLE; 8
(IV) IS AGING OUT OR WHO HAS AGED OUT OF FOSTER CARE; 9
(V) IS EXPERIENCING HOMELESSNESS; OR 10
(VI) RESIDES IN AN APPLICABLE ZIP CODE. 11
(4) “ELIGIBLE ORGANIZATION ” MEANS AN ORGANIZATION THAT 12
SUPPORTS AT–RISK YOUTH AND IS CERTIFIED BY THE DEPARTMENT OF COMMERCE 13
AND THE GOVERNOR’S OFFICE OF CRIME PREVENTION AND POLICY UNDER THIS 14
SECTION, INCLUDING: 15
(I) A NONPROFIT ORGANIZA TION EXEMPT FROM TAX ATION 16
UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; 17
(II) A LOCAL EDUCATION AGENCY; 18
(III) A COUNTY OR MUNICIPAL GOVERNMENT AGENCY; 19
(IV) A FAITH–BASED ORGANIZATION D ELIVERING SECULAR 20
YOUTH SERVICES; AND 21
(V) A PUBLIC SCHOOL OR RECREATION CENTER. 22
(5) “QUALIFIED CONTRIBUTIO N” MEANS A CASH OR IN –KIND 23
DONATION MADE TO AN ELIGIBLE ORGANIZATIO N FOR APPROVED PROGR AM 24
PURPOSES. 25
(B) THE PURPOSE OF THIS S ECTION IS TO ESTABLI SH A TARGETED STATE 26
INCOME TAX CREDIT TO INCENTIVIZE PRIVATE CONTRIBUTIONS, VOLUNTEER 27
HOUSE BILL 1521 3
EFFORTS, AND EMPLOYER HIRING INITIATIVES AIMED AT REDUCING JUVENILE 1
CRIME AND SUPPORTING YOUTH DEVELOPMENT IN AN APPLICABLE ZIP CODE. 2
(C) (1) (I) AN INDIVIDUAL OR BUSINESS ENTITY MAY CLAIM A CREDIT 3
AGAINST THE STATE INCOME TAX IN AN AMOUNT EQUAL T O 50% OF A QUALIFIED 4
CONTRIBUTION TO AN ELIGIBLE ORGANIZATION. 5
(II) FOR EACH TAXABLE YEAR , THE CREDIT ALLOWED UNDER 6
THIS PARAGRAPH MAY NOT EXCEED: 7
1. FOR AN INDIVIDUAL, $5,000; OR 8
2. FOR A BUSINESS ENTITY, $100,000. 9
(2) (I) IN ADDITION TO THE CREDIT ALLOWED UNDER PARAGRAPH 10
(1) OF THIS SUBSECTION , AN INDIVIDUAL WHO VOLUNTEERS TO SPEAK TO 11
STUDENTS ABOUT THE INDIVIDUAL’S PROFESSION OR YOUTH EMPOWERMENT AT A 12
PUBLIC SCHOOL OR RECREATION CENTER MAY CLAIM A CREDIT AGAINST THE STATE 13
INCOME TAX IN AN AMOUNT EQUAL T O $25 FOR EACH DAY THE INDIVIDUAL 14
VOLUNTEERS. 15
(II) FOR ANY TAXABLE YEAR , THE CREDIT ALLOWED U NDER 16
THIS PARAGRAPH MAY NOT EXCEED $500. 17
(III) IN ORDER TO BE ELIGIB LE FOR THE CREDIT AL LOWED 18
UNDER THIS PARAGRAPH, THE INDIVIDUAL MUST: 19
1. VOLUNTEER AT LEAST 1 HOUR ON THE DAY THE 20
INDIVIDUAL VOLUNTEERS; 21
2. BE ACCOMPANIED BY A SCHOOL OFFICIAL AND 22
SCHOOL SAFETY PERSONNEL WHILE ON SCHOOL GROUNDS; AND 23
3. RECEIVE A SIGNED AFF IDAVIT FROM THE SCHO OL 24
PRINCIPAL OR THE PRINCIPAL’S DESIGNEE CERTIFYING THAT THE INDIVIDUAL 25
VOLUNTEERED. 26
(IV) AN INDIVIDUAL MAY CLAIM THE CREDIT UNDER THIS 27
PARAGRAPH FOR UP TO TWO SCHOOL VISITS A MONTH. 28
(3) (I) AN EMPLOYER MAY CLAIM A CREDIT AGAINST THE STATE 29
INCOME TAX IN THE AM OUNT OF $1,000 FOR EACH AT–RISK YOUTH EMPLOYED BY 30
THE EMPLOYER DURING THE TAXABLE YEAR. 31
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(II) FOR ANY TAXABLE YEAR , THE CREDIT ALLOWED U NDER 1
THIS PARAGRAPH MAY NOT EXCEED $5,000. 2
(III) IN ORDER TO BE ELIGIB LE FOR THE CREDIT ALLOWED 3
UNDER THIS PARAGRAPH, THE EMPLOYER MUST EMPLOY THE AT–RISK YOUTH FOR 4
AT LEAST 20 HOURS EACH WEEK FOR: 5
1. AT LEAST 60 DAYS DURING THE TAXABLE YEAR IF THE 6
EMPLOYMENT IS PART OF AN INTERNSHIP OR SUMMER PROGRAM; OR 7
2. AT LEAST 90 DAYS DURING THE TAXABLE YEAR. 8
(D) THE UNUSED AMOUNT OF A CREDIT A LLOWED UNDER THIS SE CTION 9
MAY NOT BE CARRIED OVER TO ANY OTHER TAXABLE YEAR. 10
(E) (1) BEFORE AN INDIVIDUAL, A BUSINESS ENTITY, OR AN EMPLOYER 11
MAY CLAIM A CREDIT ALLOWED UNDER THIS SECTION, THE INDIVIDUAL, BUSINESS 12
ENTITY, OR EMPLOYER SHALL AP PLY TO THE DEPARTMENT OF COMMERCE FOR 13
CERTIFICATION OF THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED. 14
(2) THE DEPARTMENT O F COMMERCE SHALL ESTABL ISH AN 15
APPLICATION PROCESS TO CERTIFY THE AMOUNT O F THE CREDIT THAT MA Y BE 16
CLAIMED. 17
(3) FOR EACH TAXABLE YEAR , THE AMOUNT OF TAX CR EDITS 18
CERTIFIED BY THE DEPARTMENT OF COMMERCE MAY NOT EXCEED $10,000,000. 19
(4) THE DEPARTMENT OF COMMERCE SHALL APPROVE ALL 20
APPLICATIONS THAT QUALIFY FOR A TAX CREDIT: 21
(I) ON A FIRST–COME, FIRST–SERVED BASIS; AND 22
(II) IN A TIMELY MANNER. 23
(F) THE DEPARTMENT OF COMMERCE, IN CONSULTATION WITH THE 24
GOVERNOR’S OFFICE OF CRIME PREVENTION AND POLICY, SHALL ADOPT 25
REGULATIONS THAT: 26
(1) PROVIDE FOR THE CERTIFICATION OF ELIGIBLE ORGANIZATIONS; 27
(2) DESIGNATE APPLICABLE ZIP CODES; 28
HOUSE BILL 1521 5
(3) ESTABLISH PROCEDURES FOR APPLICATION FOR, VERIFICATION 1
OF, AND REPORTING ON THE TAX CREDITS AUTHORIZED UNDER THIS SECTION; 2
(4) PROVIDE FOR THE VERI FICATION OF SCHOOL VISIT AFFIDAV ITS 3
FOR VOLUNTEER TAX CREDITS; AND 4
(5) ENSURE COMPLIANCE WITH THIS SECTION AND PROVIDE FOR 5
AUDITING OF TAXPAYERS AND QUARTERLY TRACKING OF TAX CREDIT USAGE. 6
(G) (1) ON OR BEFORE JULY 1, 2027, AND EACH JULY 1 THEREAFTER, 7
THE DEPARTMENT OF COMMERCE SHALL REPORT TO THE GENERAL ASSEMBLY, IN 8
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE TAX 9
CREDITS UNDER THIS SECTION. 10
(2) THE REPORT UNDER THIS SUBSECTION SHALL INCLUDE: 11
(I) THE NUMBER AND AMOUNT OF TAX CREDITS AWARDED; 12
(II) THE NUMBER OF AT–RISK YOUTH SERVED OR EMPLOYED AS 13
A RESULT OF THE TAX CREDIT; 14
(III) JUVENILE CRIME STATISTICS IN APPLICABLE ZIP CODES; 15
(IV) THE IMPACT ON TARGETED COMMUNITIES; AND 16
(V) ADDITIONAL BENEFITS TO AT –RISK YOUTH THAT HAVE 17
OCCURRED AS A RESULT OF THE CONTRIBUTIONS MADE UNDER THIS SECT ION, 18
INCLUDING PARTICIPAT ION IN EVENTS SUCH AS FIELD TRIPS , DEBATES, ART 19
EXHIBITS, CONCERTS, SPORTS CLINICS, AND BUSINESS COMPETITIONS. 20
(H) ON OR BEFORE DECEMBER 1, 2031, THE DEPARTMENT OF 21
LEGISLATIVE SERVICES SHALL CONDUC T, IN ACCORDANCE WITH TITLE 1, 22
SUBTITLE 3 OF THIS ARTICLE , AN EVALUATION OF THE TAX CREDIT AU THORIZED 23
UNDER THIS SECTION AND SHALL REPORT TO THE GENERAL ASSEMBLY, IN 24
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE TAX 25
CREDIT EVALUATION. 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2026, but 28
before January 1, 2033 . It shall remain effective for a period of 7 years and, at the end of 29
June 30, 2033, this Act, with no further action required by the General Assembly, shall be 30
abrogated and of no further force and effect. 31