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*sb0194*
SENATE BILL 194
Q1, C8, P1 6lr0616
(PRE–FILED)
By: Senator Simonaire Senators Simonaire, Bailey, Corderman, McKay,
Rosapepe, and Salling
Requested: June 27, 2025
Introduced and read first time: January 14, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 15, 2026
CHAPTER ______
AN ACT concerning 1
Income and Property Tax Incentives – Members and Veterans of the Space 2
Force – Application 3
FOR the purpose of applying certain provisions of law relating to the job creation tax credit 4
and certain property tax credits and exemptions for certain members, veterans, and 5
surviving spouses of certain members and veterans of the military, naval, or air 6
service to certain members, veterans, and surviving spouses of certain members and 7
veterans of the space force; and generally relating to income and property tax 8
incentives for members, veterans, and surviving spouses of members and veterans 9
of the space force. 10
BY repealing and reenacting, with amendments, 11
Article – State Government 12
Section 9–901 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – Economic Development 17
Section 6–301(a) 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20
2 SENATE BILL 194
BY repealing and reenacting, with amendments, 1
Article – Economic Development 2
Section 6–301(e) 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2025 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – Tax – Property 7
Section 1–101(a), 9–265(a)(1), and 9–323(g)(1)(i) 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2025 Supplement) 10
BY adding to 11
Article – Tax – Property 12
Section 1–101(a–2) 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2025 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Tax – Property 17
Section 1–101(a–2), 7–208(a) and (d)(1), 9–265(a)(2) and (d)(1), and 9–323(g)(1)(ii) 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2025 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – State Government 23
9–901. 24
(a) In this subtitle the following words have the meanings indicated. 25
(b) “Active duty” has the meaning stated in 37 U.S.C. § 101. 26
(c) “ACTIVE MILITARY, NAVAL, AIR, OR SPACE SERVICE” HAS THE MEANING 27
STATED IN 38 U.S.C. § 101. 28
(D) “Active service member” means an individual who is: 29
(1) an active duty member of the uniformed services; or 30
(2) serving in a reserve component of the uniformed services on active duty 31
orders. 32
[(d)] (E) “Armed forces” has the meaning stated in 10 U.S.C. § 101. 33
SENATE BILL 194 3
[(e)] (F) “Board” means the Board of Trustees of the Maryland Veterans Trust. 1
[(f)] (G) “Department” means the Department of Veterans and Military 2
Families. 3
[(g)] (H) “Military family” includes the spouse and dependent chil dren of a 4
service member or veteran related by blood, marriage, or adoption. 5
[(h)] (I) “Reserve component” has the meaning stated in 37 U.S.C. § 101. 6
[(i)] (J) “Secretary” means the Secretary of Veterans and Military Families. 7
[(j)] (K) “Service member” means an individual who is a member of: 8
(1) the uniformed services; or 9
(2) a reserve component of the uniformed services. 10
[(k)] (L) “Trust” means the Maryland Veterans Trust. 11
[(l)] (M) “Uniformed services” has the meaning stated in 37 U.S.C. § 101. 12
[(m)] (N) Except as otherwise provided in this subtitle, “veteran” has the 13
meaning stated in 38 U.S.C. § 101. 14
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 15
as follows: 16
Article – Economic Development 17
6–301. 18
(a) In this subtitle the following words have the meanings indicated. 19
(e) “Qualified veteran employee” means an individual who: 20
(1) is honorably discharged or released under honorable circumstances 21
from active military, naval, [or] air, OR SPACE service as defined in [38 U.S.C. § 101 ] § 22
9–901 OF THE STATE GOVERNMENT ARTICLE; and 23
(1) IS A VETERAN; AND 24
(2) is a qualified veteran as defined under § 51(d)(3)(A) of the Internal 25
Revenue Code for purposes of the federal Work Opportunity Tax Credit. 26
4 SENATE BILL 194
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 1
as follows: 2
Article – Tax – Property 3
1–101. 4
(a) In this article the following words have the meanings indicated. 5
(A–2) “ACTIVE MILITARY, NAVAL, AIR, OR SPACE SERVICE” HAS THE MEANING 6
STATED IN § 9–901 OF THE STATE GOVERNMENT ARTICLE. 7
[(a–2)] (A–3) “Active service member” has the meaning stated in § 9–901 of the 8
State Government Article. 9
7–208. 10
(a) (1) In this section the following words have the meanings indicated. 11
(2) “Disabled active duty service member” means an individual in active 12
[service of the] military, naval, [or] air, OR SPACE service [as defined in 38 U.S.C. § 101] 13
who has a service connected physical disability that: 14
(i) is reasonably certain to continue for the life of the service 15
member; and 16
(ii) was not caused or incurred by misconduct of the service member. 17
(3) (i) “Disabled veteran” means an individual who: 18
1. is honorably discharged or released under honorable 19
circumstances from active military, naval, [or] air, OR SPACE service [as defined in 38 20
U.S.C. § 101]; and 21
1. IS A VETERAN; AND 22
2. has been declared by the U.S. Department of Veterans 23
Affairs to have a permanent 100% service connected disability that results from blindness 24
or other disabling cause that: 25
A. is reasonably certain to continue for the life of the veteran; 26
and 27
B. was not caused or incurred by misconduct of the veteran. 28
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(ii) “Disabled veteran” includes an individual who qualifies 1
posthumously for a 100% service connected disability. 2
(4) “Dwelling house”: 3
(i) means real property that is: 4
1. the legal residence of a disabled active duty service 5
member, disabled veteran, or surviving spouse; and 6
2. occupied by not more than 2 families; and 7
(ii) includes the lot or curtilage and structures necessary to use the 8
real property as a residence. 9
(5) “Individual who died in the line of duty” means an individual who died 10
while in the active military, naval, [or] air, OR SPACE service [of the United States] as a 11
result of an injury or disease that is deemed under 38 U.S.C. § 105 to have been incurred 12
in the line of duty. 13
(6) “Surviving spouse” means an individual who has not remarried and 14
who: 15
(i) is the surviving spouse of a disabled veteran; 16
(ii) is the surviving spouse of an individual who died in the line of 17
duty; or 18
(iii) receives Dependency and Indemnity Compensation from the U.S. 19
Department of Veterans Affairs. 20
(d) (1) A disabled veteran or a surviving spouse of a disabled veteran shal l 21
apply for an exemption under this section by providing to the supervisor: 22
(i) a copy of the disabled veteran’s discharge certificate from active 23
military, naval, [or] air, OR SPACE service; and 24
(ii) 1. on the form provided by the Department, a certification of 25
the disabled veteran’s disability from the U.S. Department of Veterans Affairs; or 26
2. a rating decision of the disabled veteran’s disability from 27
the U.S. Department of Veterans Affairs that includes the effective date of the rating 28
decision. 29
9–265. 30
(a) (1) In this section the following words have the meanings indicated. 31
6 SENATE BILL 194
(2) “Disabled veteran” means an individual who: 1
(i) is honorably discharged or released under honorable 2
circumstances from active military, naval, [or] air, OR SPACE service [as defined in 38 3
U.S.C. § 101]; and 4
(I) IS A VETERAN; AND 5
(ii) 1. has been declared by the U.S. Department of Veterans 6
Affairs to have a permanent service–connected disability of at least 50% that results from 7
blindness or any other disabling cause that: 8
A. is reasonably certain to continue for the life of the veteran; 9
and 10
B. was not caused or incurred by misconduct of the veteran; 11
or 12
2. has been declared by the U.S. Department of Veterans 13
Affairs to have a nonpermanen t service –connected disability of 100% that results from 14
blindness or any other disabling cause that was not caused or incurred by misconduct of 15
the veteran. 16
(d) (1) A disabled veteran shall apply for the property tax credit under this 17
section by providing to the county or municipal corporation: 18
(i) a copy of the disabled veteran’s discharge certificate from active 19
military, naval, [or] air, OR SPACE service; and 20
(ii) on the form provided by the county or municipal corporation, a 21
certification of the disabled veteran’s disability from the U.S. Department of Veterans 22
Affairs. 23
9–323. 24
(g) (1) (i) In this subsection the following words have the meanings 25
indicated. 26
(ii) 1. “Disabled veteran” means an individual who: 27
A. is honorably discharge d or released under honorable 28
circumstances from active military, naval, [or] air, OR SPACE service [as defined in 38 29
U.S.C. § 101]; and 30
A. IS A VETERAN; AND 31
SENATE BILL 194 7
B. has been declared by the U.S. Department of Veterans 1
Affairs to have a permanent service–connected disability that results from blindness or 2
other disabling cause that: 3
I. is reasonably certain to continue for the life of the veteran; 4
and 5
II. was not caused or incurred by misconduct of the veteran. 6
2. “Disabled veteran” includes an individual who qualifies 7
posthumously for a service–connected disability. 8
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be 9
applicable to all taxable years beginning after December 31, 2025. 10
SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall be 11
applicable to all taxable years beginning after June 30, 2026. 12
SECTION 6. AND BE IT FURTHER ENACTED, That this Act shall take effect July 13
1, 2026. 14
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.