Sales and Use Tax - Electricity for Agriculture Purposes - Study and Report

Agriculture Budget Taxes

Enacted

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

Sponsor: Delegates Hornberger and Sample-Hughes
Last action: 2026-05-26
Official status: Approved by the Governor - Chapter 783
Effective date: 2026-07-01

Plain English Breakdown

Checked against official source text during the last sync.

Electricity for Agriculture Tax Study

This law requires the Comptroller to study and report on exempting electricity used by farmers from sales and use taxes, with input from other agencies.

What This Bill Does

Requires the Comptroller to study whether electricity used by farmers should be tax-exempt for agricultural purposes such as raising livestock or poultry, preparing soil, planting crops, etc.
The study must look at how removing this tax would affect the state's finances.
Includes a deadline of December 15, 2026, for submitting the report to lawmakers.
Electric companies must provide usage and billing data if requested by the Comptroller.

Who It Names or Affects

Farmers who use electricity for raising livestock or poultry, preparing soil, planting crops, etc.
The Office of the Comptroller
Electric companies

Terms To Know

Comptroller: A government official responsible for managing financial matters.
Fiscal impact: The effect of a policy or decision on the state's budget and finances.

Limits and Unknowns

Does not specify what actions will be taken based on the study’s findings.
Only requires a report by December 15, 2026; no further steps are mandated after that date.

Bill History

2026-05-26 Post Passage
Approved by the Governor - Chapter 783
2026-04-10 Senate
Favorable Report by Budget and Taxation
2026-04-01 House
Returned Passed
2026-03-26 Senate
Third Reading Passed (47-0)
2026-03-25 Senate
Hearing 3/31 at 1:30 p.m.
2026-03-23 Senate
Favorable Adopted
2026-03-23 Senate
Second Reading Passed
2026-03-13 House
Favorable Report by Ways and Means
2026-03-05 House
Third Reading Passed (125-6)
2026-03-03 Senate
Referred Budget and Taxation
2026-03-02 House
Favorable Adopted Second Reading Passed
2026-02-16 House
Hearing 3/10 at 1:00 p.m.
2026-02-13 House
First Reading Ways and Means
Maryland General Assembly
Text - First - Sales and Use Tax - Electricity for Agriculture Purposes - Study and Report
Maryland General Assembly
Vote - House - Committee - Ways and Means
Maryland General Assembly
Text - Third - Sales and Use Tax - Electricity for Agriculture Purposes - Study and Report
Maryland General Assembly
Vote - Senate - Committee - Budget and Taxation
Maryland General Assembly
Text - Chapter - Sales and Use Tax - Electricity for Agriculture Purposes - Study and Report

Official Summary Text

Requiring the Comptroller, in consultation with certain entities, to study and report to the General Assembly by December 15, 2026, on exempting from the sales and use tax electricity used for agricultural purposes such as raising livestock or poultry, preparing, irrigating, or tending the soil, or planting, maintaining, or transporting seeds or crops; and requiring the report to include an estimate of the fiscal impact of the exemption.

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.
*hb1554*

HOUSE BILL 1554
Q4 6lr3194
HB 678/23 – W&M
By: Delegates Hornberger and Sample–Hughes
Introduced and read first time: February 13, 2026
Assigned to: Ways and Means
Committee Report: Favorable
House action: Adopted
Read second time: March 2, 2026

CHAPTER ______

AN ACT concerning 1

Sales and Use Tax – Electricity for Agriculture Purposes – Study and Report 2

FOR the purpose of requiring the Comptroller, in consultation with certain entities, to 3
study and report to the General Assembly, on or before a certain date, on exempting 4
from the sales and use tax electricity used for agricultural purposes under certain 5
circumstances; and generally relating to the sales and use tax. 6

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That: 8

(a) On or before December 15, 2026, the Office of the Comptroller, in consultation 9
with the Public Service Commission and PJM Interconnection, LLC, shall study and report 10
to the General Assembly, in accordance with § 2–1257 of the State Government Article, on 11
exempting electricity from the sales and use tax if that electricity is purchased by a farmer 12
to: 13

(1) raise livestock or poultry; 14

(2) prepare, irrigate, or tend the soil; or 15

(3) plant, service, harvest, store, clean, dry, or transport seeds or crops. 16

(b) The report required under subsection (a) of this section shall include an 17
estimate of the fiscal impact of an exemption described under subsection (a) of this section. 18

2 HOUSE BILL 1554

(c) On request of the Office of the Comptroller, an electric company, as defined 1
under § 1 –101 of the Public Utilities Article, shall provide aggregate usage and billing 2
information that the Office of the Comptroller det ermines to be necessary to prepare the 3
report required under subsection (a) of this section. 4

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2026. 6

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.