§ 10-207. Subtractions from federal adjusted gross income
West's Annotated Code of MarylandTax-GeneralEffective: June 1, 2024
Effective: June 1, 2024
MD Code, Tax - General, § 10-207
§ 10-207. Subtractions from federal adjusted gross income
(a) To the extent included in federal adjusted gross income, the amounts under this section are subtracted from the federal adjusted gross income of a resident to determine Maryland adjusted gross income.
(b) The subtraction under subsection (a) of this section includes a distribution, to a beneficiary, of accumulated income on which a fiduciary has paid the income tax.
(c) The subtraction under subsection (a) of this section includes interest or dividends attributable to an obligation of the United States or an authority, commission, instrumentality, possession, or territory of the United States.
(c-1)(1)(i) In this subsection the following words have the meanings indicated.
(d) The subtraction under subsection (a) of this section includes income attributable to an employer-provided official vehicle used in accordance with law by a member of a State, county, or local:
(e) The subtraction under subsection (a) of this section includes a payment from a pension system to an individual for a disability or injury that arose out of and in the course of the individual's employment as a policeman or fire fighter.
(e-1)(1) In this subsection, “law enforcement officer” means a law enforcement officer as defined in § 1-101 of the Public Safety Article or other sworn law enforcement officer of the United States, a state, or a political subdivision of a state.
(ii) a payment of a death benefit under a collective bargaining agreement from a county or municipality in the State to the surviving spouse or other beneficiary of a law enforcement officer or fire fighter whose death arises out of or in the course of employment as a law enforcement officer or fire fighter.
(f) The subtraction under subsection (a) of this section includes income that:
(g) The subtraction under subsection (a) of this section includes a payment received under a fire, rescue, or ambulance personnel length of service award program that is funded by any county or municipal corporation of the State.
(i) The subtraction under subsection (a) of this section includes profit realized from the sale or exchange of a bond issued by the State or a political subdivision of the State.
(j) The subtraction under subsection (a) of this section includes a payment received:
(1) under Title II of the Social Security Act;1 or
(2) as a benefit under the Railroad Retirement Act.2
(k) The subtraction under subsection (a) of this section includes payment for relocation and assistance under Title 12, Subtitle 2 of the Real Property Article.
(l) The subtraction under subsection (a) of this section includes that portion of an annuity received by a retiree of a retirement or pension system:
(m) The subtraction under subsection (a) of this section includes a refund of tax on income received from a state or a political subdivision of a state.
(n) The subtraction under subsection (a) of this section includes any income that federal law or treaty exempts from a state but not federal tax on income.
(o)(1) In this subsection, “remaindermen” includes a person whose remainder interest is vested, contingent, or vested subject to divestment.
(p)(1) The subtraction under subsection (a) of this section includes the first $15,000 of military pay that is:
(q)(1)(i) In this subsection the following words have the meanings indicated.
(r)(1) In this subsection, “modified Maryland adjusted gross income” means Maryland adjusted gross income determined separately for each spouse on a joint return without regard to the subtraction allowed under this subsection.
(s)(1)(i) In this subsection the following words have the meanings indicated.
(t)(1)(i) In this subsection the following words have the meanings indicated.
(ii) “Holocaust victim” means an individual who died or lost property as a result of discriminatory laws, policies, or actions targeted against discrete groups of individuals based on race, religion, ethnicity, sexual orientation, or national origin, whether or not the individual was actually a member of any of those groups, or because the individual assisted or allegedly assisted any of those groups, between January 1, 1929 and December 31, 1945, in the country of Nazi Germany, areas occupied by Nazi Germany, those European countries allied with Nazi Germany, areas occupied by those European countries allied with Nazi Germany, or any other neutral European country or area in Europe under the influence or threat of invasion by Nazi Germany or by any European country allied with or occupied by Nazi Germany.
(v)(1) In this subsection, “artistic work”, “arts and entertainment district”, and “qualifying residing artist” have the meanings stated in § 4-701 of the Economic Development Article.
(2) The subtraction under subsection (a) of this section includes the amount of income derived within an arts and entertainment district by a qualifying residing artist from the publication, production, or sale of an artistic work that the artist created, wrote, composed, or executed in the arts and entertainment district.
(w)(1) In this subsection:
(2) Subject to the limitation under paragraph (3) of this subsection, for each taxable year beginning after December 31, 2006, but before January 1, 2010, the subtraction under subsection (a) of this section includes the foreign earned income of an individual earned as an employee of the United States or of an agency of the United States.
(x) The subtraction under subsection (a) of this section includes an amount received as a grant under the Solar Energy Grant Program under § 9-2007 of the State Government Article.
(y)(1) In this subsection, “principal residence” has the meaning stated in § 121 of the Internal Revenue Code.
(2) Subject to paragraph (3) of this subsection, the subtraction under subsection (a) of this section includes the amount of a gain resulting from a payment from the Maryland Department of Transportation to an individual for the acquisition of a portion of the individual's property on which the individual's principal residence is located.
(z)(1)(i) In this subsection the following words have the meanings indicated.
(aa)(1) The subtraction under subsection (a) of this section includes the amount of student loan indebtedness discharged.
(bb)(1)(i) In this subsection the following words have the meanings indicated.
(cc)(1)(i) In this subsection the following words have the meanings indicated.
2. is a member of the Maryland-National Capital Park Police, the Washington Suburban Sanitary Commission Police Force, or a law enforcement agency, including a law enforcement officer who serves in a probationary status or at the pleasure of the appointing authority of a county or municipal corporation.
(dd) The subtraction under subsection (a) of this section includes an amount contributed by the State into an investment account under § 18-19A-04.1 of the Education Article.
Qualified principal residence indebtedness discharged under Mortgage Forgiveness Debt Relief Act of 2007
(ee)(1) The subtraction under subsection (a) of this section includes the amount that would have been allowed for indebtedness discharged for qualified principal residence indebtedness under the federal Mortgage Forgiveness Debt Relief Act of 2007, as amended, prior to its expiration on December 31, 2012, and without regard to the date limitation in § 108(a)(1)(e) of the Internal Revenue Code.
(ff) The subtraction under subsection (a) of this section includes:
Compensation received in exchange for the sale of a perpetual conservation easement on real property
(gg) The subtraction under subsection (a) of this section includes the first $50,000 of compensation received by an individual during the taxable year in exchange for the sale of a perpetual conservation easement on real property located in the State.
Subsidy for rental expenses received under the “Live Where You Work” program of the Downtown Columbia Plan
(hh) The subtraction under subsection (a) of this section includes the value of a subsidy for rental expenses received by a resident of Howard County under the “Live Where You Work” program of the Downtown Columbia Plan.
(ii)(1) In this subsection, “Pimlico site” has the meaning stated in § 10-601 of the Economic Development Article.
(jj)(1) In this subsection, “coronavirus relief payment” means a federal, State, or local government grant or loan:
(2) For a taxable year beginning after December 31, 2019, but before January 1, 2022, the subtraction under subsection (a) of this section includes the amount of a coronavirus relief payment, including any amount of a coronavirus relief loan that has been forgiven, received by the person during the taxable year.
(ii) Within 30 days after the effective date of Chapter 39 of the Acts of the General Assembly of 2021, or if created after the effective date of those Acts, within 30 days after creating a coronavirus relief payment program, a unit of State government or a local government shall provide to the Comptroller the name of the coronavirus relief payment programs administered by the unit or local government.
(kk) For a taxable year beginning after December 31, 2020, but before January 1, 2022, the subtraction under subsection (a) of this section includes the amount of any State economic impact payment received by an individual in accordance with Chapter 39 of the Acts of the General Assembly of 2021.
(ll) For a taxable year beginning after December 31, 2020, but before January 1, 2022, the subtraction under subsection (a) of this section includes the amount of utility arrearages forgiven during the taxable year, if the forgiveness of the utility arrearages was offered through grants provided to utilities in accordance with Sections 9 and 10 of Chapter 39 of the Acts of the General Assembly of 2021.
(nn) The subtraction under subsection (a) of this section includes the first $100,000 of income received by an individual during a taxable year if the individual is at least 100 years old on the last day of the taxable year.
(oo) The subtraction allowed under subsection (a) of this section includes the amount of union dues paid by an individual during the taxable year that were allowed as a deduction under § 162 of the Internal Revenue Code prior to January 1, 2018, without regard to the limitation imposed by § 67 of the Internal Revenue Code.
(pp)(1) In this subsection, “benefit payment” means a payment that is provided to an individual or the family member of an individual as a result of the individual being injured or killed in the collapse of the Francis Scott Key Bridge on March 26, 2024.
Credits
Added by Acts 1988, c. 2, § 1, eff. Jan. 1, 1989. Amended by Acts 1988, c. 110, § 1; Acts 1988, c. 430, §§ 2, 3; Acts 1988, c. 664, §§ 1, 2; Acts 1988, c. 756; Acts 1989, c. 5, § 1; Acts 1989, c. 8, § 2; Acts 1989, c. 9, § 2; Acts 1989, c. 178, § 2, eff. July 1, 1989; Acts 1989, c. 545; Acts 1989, c. 590, § 1; Acts 1989, c. 616, § 1; Acts 1989, c. 637, §§ 1, 2; Acts 1989, c. 780, §§ 1, 2; Acts 1990, c. 315; Acts 1991, c. 487, § 5; Acts 1991, c. 671, §§ 2-4; Acts 1992, c. 22, § 1; Acts 1992, c. 131, § 12; Acts 1992, 1st Sp. Sess., c. 2, §§ 2-4; Acts 1993, c. 256, §§ 1, 2; Acts 1993, c. 262; Acts 1994, c. 146, §§ 2, 3, eff. Oct. 1, 1994; Acts 1994, c. 468, § 1, eff. Oct. 1, 1994; Acts 1997, c. 4, § 1, eff. July 1, 1997; Acts 1998, c. 4, § 1, eff. July 1, 1998; Acts 1998, c. 5, § 1, eff. July 1, 1998; Acts 1998, c. 571, §§ 1, 2, eff. July 1, 1998; Acts 1999, c. 117, § 1, eff. July 1, 1999; Acts 1999, c. 493, § 1, eff. May 13, 1999; Acts 2000, c. 185, § 1, eff. July 1, 2000; Acts 2000, c. 494, § 1, eff. July 1, 2000; Acts 2001, c. 29, § 1, eff. April 10, 2001; Acts 2001, c. 160, § 1, eff. July 1, 2001; Acts 2001, c. 161, § 1, eff. July 1, 2001; Acts 2001, c. 584, § 1, eff. July 1, 2001; Acts 2001, c. 608, § 1, eff. July 1, 2001; Acts 2002, c. 19, § 1, eff. April 9, 2002; Acts 2002, c. 417, § 1, eff. June 1, 2002; Acts 2003, c. 17, § 1, eff. Oct. 1, 2003; Acts 2005, c. 175, § 1, eff. June 1, 2005; Acts 2006, c. 226, § 1, eff. July 1, 2006; Acts 2006, c. 368, § 1, eff. July 1, 2006; Acts 2007, c. 615, § 1, eff. June 1, 2007; Acts 2007, c. 552, § 1, eff. July 1, 2007; Acts 2007, c. 553, § 1, eff. July 1, 2007; Acts 2007, 1st Sp. Sess., c. 3, § 1, eff. Jan. 1, 2008; Acts 2008, c. 36, § 1, eff. April 8, 2008; Acts 2008, c. 290, § 2, eff. July 1, 2008; Acts 2008, c. 290, § 3, eff. Oct. 1, 2008; Acts 2008, c. 307, § 1, eff. Oct. 1, 2008; Acts 2008, c. 548, § 1, eff. Oct. 1, 2008; Acts 2012, c. 544, § 2, eff. July 1, 2012; Acts 2012, c. 545, § 2, eff. July 1, 2012; Acts 2012, c. 587, § 1, eff. July 1, 2012; Acts 2013, c. 513, § 1, eff. July 1, 2013; Acts 2014, c. 320, § 1, eff. July 1, 2014; Acts 2014, c. 321, § 1, eff. July 1, 2014; Acts 2014, c. 528, § 1, eff. July 1, 2014; Acts 2014, c. 529, § 1, eff. July 1, 2014; Acts 2015, c. 21, § 1, eff. April 14, 2015; Acts 2015, c. 125, § 1, eff. July 1, 2015; Acts 2016, c. 8, § 1, eff. March 14, 2016; Acts 2016, c. 39, § 2, eff. July 1, 2016; Acts 2016, c. 519, § 2, eff. July 1, 2016; Acts 2016, c. 689, § 2, eff. July 1, 2016; Acts 2016, c. 690, § 2, eff. July 1, 2016; Acts 2017, c. 231, § 2, eff. July 1, 2017; Acts 2017, c. 501, § 1, eff. July 1, 2017; Acts 2017, c. 685, § 1, eff. July 1, 2017; Acts 2018, c. 12, § 6; Acts 2018, c. 303, § 1, eff. July 1, 2018; Acts 2018, c. 572, § 1, eff. July 1, 2018; Acts 2018, c. 573, § 1, eff. July 1, 2018; Acts 2019, c. 67, § 1, eff. July 1, 2019; Acts 2019, c. 68, § 1, eff. July 1, 2019; Acts 2019, c. 303, § 1, eff. June 1, 2019; Acts 2019, c. 380, § 1, eff. July 1, 2019; Acts 2020, c. 482, § 1, eff. July 1, 2020; Acts 2020, c. 590, § 2, eff. June 1, 2020; Acts 2020, c. 631, § 1, eff. July 1, 2020; Acts 2021, c. 39, § 1, eff. Feb. 15, 2021; Acts 2021, c. 669, § 1, eff. May 30, 2021; Acts 2022, c. 3, § 1, eff. July 1, 2022; Acts 2022, c. 4, § 1, eff. July 1, 2022; Acts 2022, c. 291, § 1, eff. July 1, 2022; Acts 2023, c. 49, § 6; Acts 2023, c. 513, § 1, eff. July 1, 2023; Acts 2023, c. 613, § 1, eff. July 1, 2023; Acts 2023, c. 614, § 1, eff. July 1, 2023; Acts 2024, c. 2, § 1, eff. April 9, 2024; Acts 2024, c. 3, § 1, eff. April 9, 2024; Acts 2024, c. 416, § 1, eff. May 9, 2024; Acts 2024, c. 417, § 1, eff. May 9, 2024; Acts 2024, c. 410, § 3, eff. June 1, 2024.
Footnotes
Aug. 14, 1935, ch. 531, 49 Stat. 620, codified at 42 U.S.C.A. § 301 et seq.
June 27, 1934, ch. 868, 48 Stat. 1283, codified at 45 U.S.C.A. § 231 et seq.
MD Code, Tax - General, § 10-207, MD TAX GENERAL § 10-207
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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