Income Tax - Subtraction Modification - Retirement Income of Fire, Rescue, and Emergency Services Personnel - Eligibility

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 271
Q3 6lr2405

By: Senator Gile
Introduced and read first time: January 19, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Subtraction Modification – Retirement Income of Fire, Rescue, 2
and Emergency Services Personnel – Eligibility 3

FOR the purpose of altering a certain subtraction modification under the Maryland income 4
tax to include certain ret irement income attributable to a resident’s employment 5
with the District of Columbia as a member of a fire, rescue, or emergency services 6
organization; and generally relating to a subtraction modification for retirement 7
income attributable to a resident’s employment as a member of a fire, rescue, or 8
emergency services organization. 9

BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 10–207(a) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, with amendments, 15
Article – Tax – General 16
Section 10–207(mm) 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2025 Supplement) 19

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21

Article – Tax – General 22

10–207. 23

2 SENATE BILL 271

(a) To the extent included in federal adjusted gross income, the amounts under 1
this section are subtracted from the federal adjusted gross income of a resident to determine 2
Maryland adjusted gross income. 3

(mm) (1) (i) In this subsection the following words have the meanings 4
indicated. 5

(ii) “Correctional officer” means an individual who: 6

1. was employed in: 7

A. a State correctional facility, as defined in § 1 –101 of the 8
Correctional Services Article; 9

B. a local correctional facility, as defined in § 1 –101 of the 10
Correctional Services Article; 11

C. a juvenile facility included in § 9 –226 of the Human 12
Services Article; or 13

D. a facility of the United States that is equivalent to a State 14
or local correctional facility or a juvenile facility included in § 9–226 of the Human Services 15
Article; and 16

2. is eligible to receive retirement income attributable to the 17
individual’s employment under item 1 of this subparagraph. 18

(iii) “Emergency services personnel” means emergency medical 19
technicians or paramedics. 20

(iv) “Employee retirement system” has the meaning stated under § 21
10–209(a) of this subtitle. 22

(v) 1. “Public safety employee” means an individual who is a 23
retired correctional officer, law enforcement officer, or fire, rescue, or emergency services 24
personnel of the United States, the State, or a political subdivision of the State. 25

2. “PUBLIC SAFETY EMPLOYE E” INCLUDES AN 26
INDIVIDUAL WHO IS A RETIRED FIRE , RESCUE, OR EMERGENCY SERVICES 27
PERSONNEL OF THE DISTRICT OF COLUMBIA. 28

(2) The subtraction under subsection (a) of this section includes the first 29
$15,000 of income from an employee retirement system that is attributable to service as a 30
public safety employee, if th e income is received by an individual who is at least 55 years 31
old on the last day of the taxable year. 32

SENATE BILL 271 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. 2