§ 10-208. Additional subtractions from federal adjusted gross income
West's Annotated Code of MarylandTax-GeneralEffective: July 1, 2024 to June 30, 2029
Effective: July 1, 2024 to June 30, 2029
MD Code, Tax - General, § 10-208
§ 10-208. Additional subtractions from federal adjusted gross income
<Section effective July 1, 2024 until July 1, 2029. See, also, section 10-208 effective until July 1, 2024, and section 10-208 effective July 1, 2029.>
(a) In addition to the modification under § 10-207 of this subtitle, 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 an amount equal to:
(1) $12,000, if during the taxable year the taxpayer adopts a child who the State determines is a child with a special need, as described in § 473(c)(1) and (2) of the Social Security Act,1 and the adoption is made through a private, nonprofit, licensed adoption agency or a public child welfare agency; and
(2) $10,000, if during the taxable year the taxpayer adopts a child without a special need as provided under item (1) of this subsection.
(c)(1) The subtraction under subsection (a) of this section includes expenses that a blind individual or an employer of a blind individual incurs in providing a human or mechanical reader for the individual, if the individual has permanent impairment of both eyes with central visual acuity:
(d)(1) In this subsection:
4. poultry or livestock manure spreading equipment used by a farm owner or tenant on farmland in accordance with a nutrient management plan prepared by an individual licensed by the Secretary of Agriculture in accordance with Title 8, Subtitle 8 of the Agriculture Article if the manure spreading equipment is used:
(5) If the subtraction allowed under paragraphs (2) and (3) of this subsection exceeds the Maryland taxable income that is computed without the modification allowed under this subsection and the subtraction is not used for the taxable year, the excess may be carried over to succeeding taxable years, not to exceed 5, until the full amount of the subtraction is used.
(e) The subtraction under subsection (a) of this section includes expenses for household and dependent care services not exceeding the dollar limit allowed under § 21(c) of the Internal Revenue Code and determined without reference to the percentage limitation in § 21(a)(2) of the Internal Revenue Code.
(f) The subtraction under subsection (a) of this section includes the fair market value of any artistic, literary, or musical creation or other artwork donated to and accepted by a museum in the State that is open to the general public if:
(iv) “Wholesale market value” means the value of donated farm products based on the wholesale market price of the farm product in the nearest regional market during the calendar week in which the donation is made, determined without consideration of grade or quality of the product, as if the quantity of the product donated were marketable.
(i)(1) The subtraction under subsection (a) of this section includes twice the amount of expenses for reforestation or timber stand improvement activity on 3 to 1,000 acres of commercial forest land, exclusive of federal funds.
(i-1)(1) The subtraction under subsection (a) of this section includes an amount equal to the amount specified in paragraph (3) of this subsection if an individual is a qualifying volunteer fire, rescue, or emergency medical services member for the taxable year, as determined under paragraph (2) of this subsection.
A. a volunteer fire, rescue, or emergency medical services personnel or auxiliary length of service award program operated by a county or municipal corporation of the State, if the length of service award program requires for active status qualification a minimum of 50 points per year and that points be earned in at least two different categories; or
B. a point system established by a county or municipal corporation that does not operate a volunteer fire, rescue, or emergency medical services personnel or auxiliary length of service award program or by the United States Coast Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol, to identify active members of a volunteer fire, rescue, or emergency medical services organization or auxiliary organization, if the point system requires for active status qualification a minimum of 50 points per year and that points be earned in at least two different categories;
(iv) will have been an active member of a bona fide Maryland fire, rescue, or emergency medical services organization, an auxiliary organization of a bona fide Maryland fire, rescue, or emergency medical services organization, or the United States Coast Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol for at least 36 months during the last 10 calendar years by December 31 of the taxable year.
(ii) An individual may not qualify for the subtraction under this subsection based on membership in the United States Coast Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol unless the United States Coast Guard Auxiliary, the Maryland Defense Force, or the Maryland Civil Air Patrol:
(6) On or before October 1 of each year, the Maryland State Firemen's Association shall submit to the Department of Public Safety and Correctional Services and the Office of the Comptroller a report stating the participation in the point system by the various local subdivisions with the names and Social Security numbers of individuals who qualified for the subtraction modification under this subsection for the preceding taxable year.
(i-2)(1) Except as provided in paragraph (2) of this subsection, the subtraction under subsection (a) of this section includes the gross income of a child included in a parent's gross income under § 1(g)(7) of the Internal Revenue Code.
(j)(1) The subtraction under subsection (a) of this section includes unreimbursed automobile travel expenses for volunteer service:
(k)(1) The subtraction under subsection (a) of this section includes the amount of salary or wages paid for which a deduction is not allowed under § 280C(a) of the Internal Revenue Code, not exceeding the credit allowed for targeted jobs under § 51 of the Internal Revenue Code.
(l)(1) The subtraction under subsection (a) of this section includes an amount equal to the amount specified in paragraph (3) of this subsection if an individual is a qualifying police auxiliary or reserve volunteer for the taxable year, as determined under paragraph (2) of this subsection.
(iii) 1. qualifies for active status during the taxable year under a police auxiliary or reserve volunteer program approved by the Police Training and Standards Commission in conjunction with the Maryland Association of Counties and the Maryland Municipal League, that includes uniform systems for qualification and record keeping, if the program is incorporated into the police agency's rules and regulations;
(6) On or before October 1 of each year, the police agency shall submit to the Department of Public Safety and Correctional Services and the Office of the Comptroller a report listing the names and Social Security numbers of individuals who qualified for the subtraction modification under this subsection for the preceding taxable year.
(m) Repealed by Acts 2013, c. 257, § 1, eff. July 1, 2013; Acts 2013, c. 258, § 1, eff. July 1, 2013.
(n)(1)(i) In this subsection the following words have the meanings indicated.
(2) The subtraction under subsection (a) of this section includes the amount of advance payments of qualified higher education expenses made by an account holder or a contributor during the taxable year as provided under a prepaid contract in accordance with the Maryland Senator Edward J. Kasemeyer Prepaid College Trust.
(4) The amount disallowed as a subtraction under this subsection for any taxable year as a result of the limitation under paragraph (3) of this subsection shall be treated as having been made in the next succeeding taxable year and, subject to the $2,500 annual limitation for each prepaid contract, may be carried over to succeeding taxable years until the full amount of the advance payments has been allowed as a subtraction.
(o)(1)(i) In this subsection the following words have the meanings indicated.
(2)(i) Except as provided in subparagraph (ii) of this paragraph and subject to the limitation under paragraph (3) of this subsection, the subtraction under subsection (a) of this section includes the amount contributed by an account holder or a contributor during the taxable year to an investment account.
(3)(i) Subject to paragraph (4) of this subsection, for each account holder or contributor for all investment accounts maintained in the Maryland Senator Edward J. Kasemeyer College Investment Plan and the Maryland Broker-Dealer College Investment Plan for the same qualified designated beneficiary, the subtraction under paragraph (2) of this subsection may not exceed $2,500 for any taxable year per qualified designated beneficiary.
(4) Subject to the $2,500 annual limitation for each account holder or contributor for each qualified designated beneficiary, the amount disallowed as a subtraction under this subsection for any taxable year as a result of the limitation under paragraph (3) of this subsection may be carried over until used to the next 10 succeeding taxable years as a subtraction.
(p)(1) In this subsection, “health care facility” has the meaning stated in § 19-114 of the Health-General Article.
(2) The subtraction under subsection (a) of this section includes the amount by which the cost difference between a conventional on-site sewage disposal system and a system that utilizes nitrogen removal technology exceeds the amount of assistance the Department of the Environment provides the homeowner under § 9-1108 of the Environment Article.
(r) The subtraction under subsection (a) of this section includes any payment to an individual made as a result of a foreclosure settlement negotiated by the Attorney General.
(s)(1)(i) In this subsection , “qualified conservation program expenses” means amounts expended by an individual during the taxable year related to an application for the Forest Conservation and Management Program within the Department of Natural Resources.
(2) The subtraction allowed under subsection (a) of this section includes up to $500 of qualified conservation program expenses paid by an individual who applies to enter into a forest conservation and management plan with the Department of Natural Resources, if the application is approved by the Department.
(t)(1) Subject to paragraph (2) of this subsection, the subtraction under subsection (a) of this section includes 100% of the costs of health insurance that a taxpayer incurs on behalf of another individual if the other individual and taxpayer are recognized by the State as lawfully married.
(u)(1)(i) In this subsection the following words have the meanings indicated.
(v)(1)(i) In this subsection the following words have the meanings indicated.
(4) Subject to the $2,500 annual limitation for each ABLE account contributor per qualified designated beneficiary, any amount disallowed as a subtraction under this subsection for any taxable year as a result of the limitation under paragraph (3) of this subsection may be carried over until used to the next 10 succeeding taxable years as a subtraction.
(w)(1)(i) In this subsection the following words have the meanings indicated.
(x)(1) In this subsection, “eligible teacher” means an individual who is a kindergarten through grade 12 classroom teacher in an elementary or secondary school in the State on a full-time basis for an academic year ending during the taxable year.
(y) 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 benefits paid to an individual in accordance with Title 8 of the Labor and Employment Article, or in accordance with the unemployment insurance program of a jurisdiction with which the State has a reciprocal taxation agreement, if the individual's federal adjusted gross income for the taxable year does not exceed:
(z)(1)(i) In this subsection the following words have the meanings indicated.
(vii) “First-time homebuyer savings account” or “account” means an account with a financial institution that an account holder designates as a first-time homebuyer savings account on the account holder's Maryland income tax return for taxable year 2021 or any following taxable year and that is established for the sole purpose of paying or reimbursing eligible costs for the purchase of a home in the State by the account holder.
(11)(i) The financial institution shall provide to each account holder, in the manner specified by the Department of Housing and Community Development, information about homebuyer education and housing counseling programs and services provided by nonprofit and government organizations certified by the U.S. Department of Housing and Urban Development that are available to residents of the State.
(aa)(1) The subtraction under subsection (a) of this section includes the amount of ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or a business as a cannabis grower, processor, dispensary, or any other cannabis establishment licensed or registered by the State, if the deduction for ordinary and necessary expenses is disallowed under § 280E of the Internal Revenue Code.
(bb) For a taxable year beginning after December 31, 2024, the subtraction under subsection (a) of this section includes the amount of tuition assistance provided to students who are eligible dependents or surviving spouses of fallen transportation workers in accordance with Title 18, Subtitle 40 of the Education Article.
Credits
Added by Acts 1989, c. 178, § 2, eff. July 1, 1989. Amended by Acts 1990, c. 7, § 1; Acts 1989, c. 345; Acts 1989, c. 358; Acts 1991, c. 126; Acts 1991, c. 487, § 3; Acts 1992, c. 164; Acts 1994, c. 3, § 1, eff. Feb. 28, 1994; Acts 1995, c. 508, § 1, eff. July 1, 1995; Acts 1996, c. 354, § 1, eff. July 1, 1996; Acts 1996, c. 601, § 1, eff. Oct. 1, 1996; Acts 1997, c. 485, § 1, eff. July 1, 1998; Acts 1998, c. 324, § 4, eff. July 1, 1998; Acts 1998, c. 325, § 4, eff. July 1, 1998; Acts 1998, c. 384, § 1, eff. July 1, 1998; Acts 1998, c. 572, § 1, eff. July 1, 1998; Acts 1999, c. 7, § 1, eff. April 8, 1999; Acts 1999, c. 375, § 1, eff. July 1, 1999; Acts 1999, c. 583, § 1, eff. July 1, 1999; Acts 1999, c. 584, § 1, eff. July 1, 1999; Acts 2000, c. 472, § 1, eff. July 1, 2000; Acts 2000, c. 494, § 1, eff. July 1, 2000; Acts 2000, c. 517, § 1, eff. July 1, 2000; Acts 2000, c. 665, § 1, eff. July 1, 2000; Acts 2001, c. 436, § 1, eff. July 1, 2001; Acts 2001, c. 437, § 1, eff. July 1, 2001; Acts 2001, c. 634, § 1, eff. July 1, 2001; Acts 2002, c. 313, § 1, eff. July 1, 2002; Acts 2003, c. 267, § 1, eff. July 1, 2003; Acts 2007, c. 5, § 1, eff. March 22, 2007; Acts 2008, c. 344, § 1, eff. July 1, 2008; Acts 2008, c. 548, § 1, eff. Oct. 1, 2008; Acts 2009, c. 280, § 1, eff. Oct. 1, 2009; Acts 2011, c. 221, § 1, eff. July 1, 2011; Acts 2011, c. 222, § 1, eff. July 1, 2011; Acts 2012, c. 156, § 1, eff. July 1, 2012; Acts 2012, c. 693, § 1, eff. July 1, 2012; Acts 2013, c. 257, § 1, eff. July 1, 2013; Acts 2013, c. 258, § 1, eff. July 1, 2013; Acts 2013, c. 384, § 3, eff. Oct. 1, 2013; Acts 2013, c. 517, § 2, eff. July 1, 2013; Acts 2013, c. 518, § 2, eff. July 1, 2013; Acts 2013, c. 546, § 1, eff. July 1, 2014; Acts 2014, c. 45, § 1, eff. April 8, 2014; Acts 2014, c. 371, § 1, eff. July 1, 2014; Acts 2014, c. 372, § 1, eff. July 1, 2014; Acts 2014, c. 419, § 1, eff. July 1, 2014; Acts 2016, c. 39, § 2, eff. July 1, 2016; Acts 2016, c. 197, § 1, 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. 62, § 6; Acts 2017, c. 155, § 1, eff. July 1, 2017; Acts 2017, c. 631, § 1, eff. Oct. 1, 2017; Acts 2018, c. 12, § 6; Acts 2018, c. 36, § 1, eff. July 1, 2018; Acts 2018, c. 466, § 1, eff. July 1, 2018; Acts 2018, c. 582, § 1, eff. July 1, 2018; Acts 2021, c. 39, § 1, eff. Feb. 15, 2021; Acts 2021, c. 221, § 1, eff. July 1, 2021; Acts 2021, c. 222 § 1, eff. July 1, 2021; Acts 2021, c. 498, § 1, eff. July 1, 2021; Acts 2021, c. 499, § 1, eff. July 1, 2021; Acts 2021, c. 512, § 1, eff. July 1, 2021; Acts 2022, c. 5, § 1, eff. July 1, 2022; Acts 2022, c. 6, § 1, eff. July 1, 2022; Acts 2022, c. 26, § 1, eff. June 1, 2022; Acts 2023, c. 49, § 2, eff. April 11, 2023; Acts 2023, c. 550, § 1, eff. July 1, 2023; Acts 2023, c. 551, § 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. 241, § 1, eff. April 25, 2024.
Footnotes
Aug. 14, 1935, ch. 531, 49 Stat. 620, codified at 42 U.S.C.A. § 301 et seq.
MD Code, Tax - General, § 10-208, MD TAX GENERAL § 10-208
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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