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HB1573 • 2026

Income Tax - Credit for Small Political Contributions

Income Tax - Credit for Small Political Contributions

Taxes
Passed Legislature

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

Sponsor
Delegate Young
Last action
2026-02-16
Official status
In the House - Hearing 3/10 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 - Credit for Small Political Contributions

Allowing a credit against the State income tax for certain small political contributions paid to certain campaign finance entities during the taxable year; making the credit refundable; applying the Act to taxable years beginning after December 31, 2025, but before January 1, 2031; etc.

What This Bill Does

  • Allowing a credit against the State income tax for certain small political contributions paid to certain campaign finance entities during the taxable year; making the credit refundable; applying the Act to taxable years beginning after December 31, 2025, but before January 1, 2031; 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. 2026-02-16 House

    Hearing 3/10 at 1:00 p.m.

  2. 2026-02-13 House

    First Reading Ways and Means

  3. Maryland General Assembly

    Text - First - Income Tax - Credit for Small Political Contributions

Official Summary Text

Allowing a credit against the State income tax for certain small political contributions paid to certain campaign finance entities during the taxable year; making the credit refundable; applying the Act to taxable years beginning after December 31, 2025, but before January 1, 2031; 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.
*hb1573*

HOUSE BILL 1573
Q3, G1 6lr1395

By: Delegate 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 Small Political Contributions 2

FOR the purpose of allowing a credit against the State income tax for certain political 3
contributions paid to certain campaign finance entit ies during the taxable year ; 4
making the cre dit refundable; and generally relating to a credit against the State 5
income tax for small political contributions. 6

BY adding to 7
Article – Tax – General 8
Section 10–758 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Tax – General 14

10–758. 15

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17

(2) “CAMPAIGN FINANCE ENTI TY” HAS THE MEANING STAT ED IN § 18
1–101 OF THE ELECTION LAW ARTICLE. 19

(3) “POLITICAL CONTRIBUTION” MEANS THE GIFT OF MONEY TO: 20

2 HOUSE BILL 1573

(I) PROMOTE OR ASSIST IN THE PROMOTION OF THE SUCCESS 1
OR DEFEAT OF A CANDI DATE, POLITICAL PARTY , QUESTION, OR PROSPECTIVE 2
QUESTION; OR 3

(II) ASSIST IN THE PAYMEN T OF EXPENSES ASSOCI ATED WITH 4
CONTESTING AN ELECTION UNDER TITLE 12 OF THE ELECTION LAW ARTICLE. 5

(4) “TAXPAYER” MEANS: 6

(I) AN INDIVIDUAL FILING AN INCOME TAX RETURN; OR 7

(II) A MARRIED COUPLE FILING A JOINT INCOME TAX RETURN. 8

(B) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A TAXPAYER MAY 9
CLAIM A CREDIT AGAINST THE STATE INCOME TAX FOR POLITICAL CONTRIBUTIONS 10
PAID TO A CAMPAIGN FINANCE ENTITY DURING THE TAXABLE YEAR. 11

(C) THE CREDIT ALLOWED UNDER THIS SECTION MAY NOT EXCEED: 12

(1) $50 FOR AN INDIVIDUAL; OR 13

(2) $100 FOR A MARRIED COUPLE FILING A JOINT RETURN. 14

(D) FOR ANY TAXABLE YEAR, THE CREDIT ALLOWED UNDER THIS SECTION 15
MAY BE CLAIMED ONLY ONCE BY A TAXPAYER. 16

(E) IF THE CREDIT ALLOWED UNDER THIS SECTION IN ANY TAXABLE YEAR 17
EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR , THE TAXPAYER MAY 18
CLAIM A REFUND IN THE AMOUNT OF THE EXCESS. 19

(F) (1) ON OR BEFORE DECEMBER 1, 2027, AND EACH DECEMBER 1 20
THEREAFTER, THE COMPTROLLER SHALL REPORT TO THE GOVERNOR AND , IN 21
ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL 22
ASSEMBLY ON THE CREDIT ALLOWED UNDER THIS SECTION, INCLUDING: 23

(I) THE NUMBER OF TAXPAYERS WHO HAVE CLAIMED THE 24
CREDIT; AND 25

(II) THE CREDIT’S TOTAL FISCAL IMPACT ON THE STATE. 26

(2) THE COMPTROLLER SHALL PUB LISH THE ANNUAL REPORT 27
REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION ON T HE COMPTROLLER’S 28
PUBLICLY ACCESSIBLE WEBSITE. 29
HOUSE BILL 1573 3

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025, but 2
before January 1, 2031. It shall remain effective for a period of 6 years and, at the end of 3
June 30, 2032, this Act, with no further action required by the General Assembly, shall be 4
abrogated and of no further force and effect. 5