Property Tax - Credit for Dwelling House of Disabled Veterans and Surviving Spouses - Income Eligibility

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.
*hb1611*

HOUSE BILL 1611
Q1 6lr3701

By: Delegate Pippy Delegates Pippy, Addison, Buckel, Coley, Ebersole, Hartman,
Hornberger, R. Long, Miller, Patterson, Roberson, Vogel, Wims, and Young
Introduced and read first time: February 17, 2026
Assigned to: Rules and Executive Nominations
Re–referred to: Ways and Means, March 2, 2026
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2026

CHAPTER ______

AN ACT concerning 1

Property Tax – Credit for Dwelling House of Disabled Veterans and Surviving 2
Spouses – Income Eligibility 3

FOR the purpose of repealing altering a certain income limitation used to establish 4
eligibility for a property tax credit against the county and municipal corporation 5
property tax imposed on the dwelling house of a certain disabled veteran or surviving 6
spouse and instead authorizing the gover ning body of a county or a municipal 7
corporation to establish eligibility criteria that limits the property tax credit based 8
on a disabled veteran’s federal adjusted gross income ; and generally relating to a 9
property tax credit for the dwelling house of disabled veterans and surviving spouses. 10

BY repealing and reenacting, with amendments, 11
Article – Tax – Property 12
Section 9–265 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2025 Supplement) 15

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17

Article – Tax – Property 18

9–265. 19
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(a) (1) In this section the following words have the meanings indicated. 1

(2) “Disabled veteran” means an individual who: 2

(i) is honorably discharged or released under honorable 3
circumstances from active military, naval, or air service as defined in 38 U.S.C. § 101; and 4

(ii) 1. has been declared by the U.S. Department of Veterans 5
Affairs to have a permanent service–connected disability of at least 50% that results from 6
blindness or any other disabling cause that: 7

A. is reasonably certain to continue for the life of the veteran; 8
and 9

B. was not caused or incurred by misconduct of the veteran; 10
or 11

2. has been declared by the U.S. Department o f Veterans 12
Affairs to have a nonpermanent service –connected disability of 100% that results from 13
blindness or any other disabling cause that was not caused or incurred by misconduct of 14
the veteran. 15

(3) “Dwelling house”: 16

(i) means real property that is: 17

1. the legal residence of a disabled veteran; and 18

2. occupied by not more than two families; and 19

(ii) includes the lot or curtilage and structures necessary to use the 20
real property as a residence. 21

(b) The Mayor and City Council of Balt imore City or the governing body of a 22
county or municipal corporation may grant, by law, a property tax credit under this section 23
against the county or municipal corporation property tax imposed on a dwelling house if: 24

(1) the dwelling house is owned by a disabled veteran; AND 25

(2) [the disabled veteran’s federal adjusted gross income for the 26
immediately preceding taxable year does not exceed $100,000: 27

(I) $150,000, IF FILING AN INDIVID UAL INCOME TAX RETUR N; 28
OR 29

HOUSE BILL 1611 3

(II) $300,000, IF FILING A JOINT INCOME TAX RETURN; and 1

(3)] the application requirements of subsection (d) of this section are met. 2

(c) The property tax credit granted under this section shall equal: 3

(1) 50% of the county or municipal corporation property tax imposed on the 4
dwelling house if the disabled veteran’s service–connected disability rating is at least 75% 5
and the disabled veteran does not qualify for a property tax exemption under § 7 –208 of 6
this article; or 7

(2) 25% of the county or municipal corporation property tax imposed on the 8
dwelling house if the disabled veteran’s service–connected disability rating is at least 50% 9
but not more than 74%. 10

(d) (1) A disabled veteran shall apply for the property tax credit under this 11
section by providing to the county or municipal corporation: 12

(i) a copy of the disabled veteran’s discharge certificate from active 13
military, naval, or air service; and 14

(ii) on the form provided by the county or municipal corporation, a 15
certification of the disabled veteran’s disability from the U.S. Department of Veterans 16
Affairs. 17

(2) The disabled veteran’s certificate of disability may not be inspected by 18
individuals other than: 19

(i) the disabled veteran; or 20

(ii) appropriate employees of the county or municipal corporation. 21

(e) The Mayor and City Council of Baltimore City or the governing body of a 22
county or municipal corporation may, by law, continue to provide the property tax credit 23
under this section to the surviving spouse of the disabled veteran. 24

(f) The Mayor and City Council of Baltimore City or the governing body of a 25
county or municipal corporation may provide, by law, for: 26

(1) the duration of the tax credit; 27

(2) ELIGIBILITY CRITERIA FOR THE TAX CREDIT T HAT LIMITS THE 28
CREDIT BASED ON A DISABLED VETERAN’S FEDERAL ADJUSTED GROSS INCOME FOR 29
THE IMMEDIATELY PRECEDING TAXABLE YEAR; 30

4 HOUSE BILL 1611

(3) regulations and procedures for the application and uniform processing 1
of requests for the tax credit; 2

[(3)] (4) the definition of surviving s pouse and the amount and duration 3
of the tax credit for the surviving spouse; 4

[(4)] (5) notwithstanding subsection (a)(2)(ii)2 of this section, eligibility 5
criteria for the credit allowed under this section that limits the credit to individuals 6
described under subsection (a)(2)(ii)1 of this section; and 7

[(5)] (6) any other provision necessary to carry out the tax credit under 8
this section. 9

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 10
1, 2026, and shall be applicable to all taxable years beginning after June 30, 2026. 11

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