Income Tax - Credit for Individuals Residing With and Caring for Elderly Parents

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0151*

SENATE BILL 151
Q3 6lr1450
SB 104/25 – B&T (PRE–FILED)
By: Senator Folden
Requested: October 29, 2025
Introduced and read first time: January 14, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Credit for Individuals Residing With and Caring for Elderly 2
Parents 3

FOR the purpose of allowing a credit against the State income tax for an individual who 4
resides with and provides care for a certain elderly parent during the taxable year 5
under certain circumstances; making the credit refundable; and generally relating 6
to a State income tax credit for individuals who reside with and provide care for 7
elderly parents. 8

BY adding to 9
Article – Tax – General 10
Section 10–758 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2025 Supplement) 13

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15

Article – Tax – General 16

10–758. 17

(A) IN THIS SECTION, “PARENT” MEANS AN INDIVIDUAL AT LEAST 70 YEARS 18
OLD WHO IS A BIOLOGICAL OR ADOPTIVE PARENT OF AN INDIVIDUAL. 19

(B) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, AN INDIVIDUAL MAY 20
CLAIM A CREDIT AGAINST THE STATE INCOME TAX IN AN AMOUNT EQUAL TO $3,000 21
IF THE INDIVIDUAL: 22

2 SENATE BILL 151

(1) RESIDES IN THE SAME PRINCIPAL RESIDENCE AS THE 1
INDIVIDUAL’S PARENT FOR AT LEAST 6 MONTHS DURING THE TAXABLE YEAR; 2

(2) PROVIDES CARE FOR THE PARENT; 3

(3) IS NOT A DEPENDENT OF ANOTHER TAXPAYER; AND 4

(4) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION , HAS FEDERAL 5
ADJUSTED GROSS INCOME THAT DOES NOT EXCEED: 6

(I) $92,000 FOR AN INDIVIDUAL TAX RETURN; OR 7

(II) $143,000 FOR A JOINT TAX RETURN. 8

(C) (1) AN INDIVIDUAL MAY CLA IM A CREDIT UNDER TH IS SECTION FOR 9
MORE THAN ONE PARENT. 10

(2) THE CREDIT ALLOWED UN DER THIS SECTION MAY NOT BE 11
CLAIMED BY MULTIPLE INDIVIDUALS IN THE SAME HOUSEHOLD WITH RESPECT TO 12
THE SAME PARENT. 13

(3) IF THE CREDIT ALLOWED UNDER THIS SECTION IN ANY TAXABLE 14
YEAR EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR, THE INDIVIDUAL 15
MAY CLAIM A REFUND IN THE AMOUNT OF THE EXCESS. 16

(D) (1) FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 17
2025, THE MAXIMUM INCOME T HRESHOLDS UNDER SUBS ECTION (B) OF THIS 18
SECTION SHALL BE INC REASED BY AN AMOUNT EQUAL T O THE PRODUCT OF THE 19
MAXIMUM INCOME THRESHOLDS AND COST–OF–LIVING ADJUSTMENT SPECIFIED IN 20
THIS SUBSECTION. 21

(2) FOR PURPOSES OF THIS SUBSECTION, THE COST –OF–LIVING 22
ADJUSTMENT IS THE CO ST–OF–LIVING ADJUSTMENT WI THIN THE MEANING OF § 23
1(F)(3) OF THE INTERNAL REVENUE CODE FOR THE CALENDAR YEAR IN WHICH A 24
TAXABLE YEAR BEGINS, AS DETERMINED BY THE COMPTROLLER, BY SUBSTITUTING 25
“CALENDAR YEAR 2018” FOR “CALENDAR YEAR 2016” IN § 1(F)(3)(A) OF THE 26
INTERNAL REVENUE CODE. 27

(3) IF ANY INCREASE D ETERMINED UNDER PARAGRAPH (1) OF THIS 28
SUBSECTION IS NOT A MULTIPLE OF $50, THE INCREASE SHALL BE ROUNDED DOWN 29
TO THE NEXT LOWEST MULTIPLE OF $50. 30

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31
1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025. 32