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WES MOORE, Governor Ch. 327
Chapter 327
(House Bill 547)
AN ACT concerning
Income Tax – Subtraction Modification – Enhanced Agricultural Management
Equipment Subtraction Modification and Parent of a Stillborn Child Credit
FOR the purpose of altering a subtraction modification under the Maryland income tax for
enhanced agricultural management equipment to include equipment that requiring
the Secretary of Agriculture determines by regulation to qualify as, on or before a
certain date each year, to report to the Governor and the General Assembly on
certain equipment that the Secretary recommends should qualify for the subtraction
modification under the Maryland income tax for enhanced agricultural management
equipment; and generally relating to a subtraction modification under the Maryland
income tax for enhanced agricultural management equipment allowing a certain
parent of a stillborn child a refundable credit against the State income tax for each
birth for which a certain certificate has been issued; and generally relating to income
tax subtraction modifications and credits.
BY repealing and reenacting, without amendments,
Article – Tax – General
Section 10–208(a)
Annotated Code of Maryland
(2022 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – General
Section 10–208(d)
Annotated Code of Maryland
(2022 Replacement Volume and 2025 Supplement)
BY adding to
Article – Tax – General
Section 10–758
Annotated Code of Maryland
(2022 Replacement Volume and 2025 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Tax – General
10–208.
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Ch. 327 2026 LAWS OF MARYLAND
(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.
(d) (1) In this subsection:
(i) “enhanced agricultural management equipment” means:
1. a planter or drill that:
A. is commonly known as a “no–till” planter or drill; and
B. is designed to minimize the disturbance of the soil in
planting crops;
2. liquid manure soil injection equipment that is designed to
inject manure into the soil to reduce nutrient runoff;
3. a deep no–till ripper that does not invert the soil profile
and is used to address compaction in high residue cropping systems;
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:
A. to spread poultry manure and bedding from normal
poultry production with a capability of being calibrated to 1 ton per acre; or
B. to apply solid or liquid livestock waste;
5. vertical tillage equipment used to incorporate livestock
manure or poultry litter into the soil;
6. a global positioning system device used for management of
agricultural nutrient applications; [and]
7. an integrated optical sensing and nutrient application
system that measures crop status and applies the crop’s nitrogen requirements at variable
rates based on predicted in–season yield potential for the crop and the predicted
responsiveness of the crop to additional nitrogen; and
8. OTHER EQUIPMENT THAT THE SECRETARY OF
AGRICULTURE DETERMINES BY REGULATION TO QUALIFY AS ENHANCED
AGRICULTURAL MANAGEMENT EQUIPMENT; AND
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WES MOORE, Governor Ch. 327
(ii) “enhanced agricultural management equipment” includes
equipment that attaches to or is pulled by equipment listed in item (i) of this paragraph.
(2) Except as provided in paragraph (3) of this subsection, the subtraction
under subsection (a) of this section includes 100% of the expenses that a taxpayer incurs to
buy and install enhanced agricultural management equipment if:
(i) the equipment has a useful life of at least 4 years;
(ii) the taxpayer:
1. bought the equipment:
A. after December 31, 1985, if the equipment is a planter or
drill;
B. after December 31, 1989, if the equipment is liquid
manure soil injection equipment;
C. after December 31, 1997, if the equipment is poultry or
livestock manure spreading equipment;
D. after December 31, 2001, if the equipment is a deep no–till
ripper that does not invert the soil profile; or
E. after December 31, 2012, if the equipment is a global
positioning system device used for management of agricultural nutrient applications or an
integrated optical sensing and nutrient application system;
2. owns the equipment for at least 3 years after the taxable
year in which the subtraction is made; and
3. uses the equipment in agricultural production; and
(iii) for liquid manure soil injection equipment, the equipment is:
1. used on land upon which farm products, as defined under
§ 10–601 of the Agriculture Article, are raised; and
2. not used to inject sludge into the soil.
(3) The subtraction under subsection (a) of this section includes 50% of the
expenses that a taxpayer incurs to buy and install enhanced agricultural management
equipment that is vertical tillage equipment used to incorporate livestock manure or
poultry litter into the soil if:
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Ch. 327 2026 LAWS OF MARYLAND
(i) the equipment has a useful life of at least 4 years; and
(ii) the taxpayer:
1. bought the equipment after December 31, 2012;
2. owns the equipment for at least 3 years after the taxable
year in which the subtraction is made; and
3. uses the equipment in agricultural production.
(4) To qualify for the subtraction under paragraphs (2) and (3) of this
subsection, a taxpayer shall file a statement from the Department of Agriculture certifying
compliance with the requirements of this section.
(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.
(6) THE ON OR BEFORE DECEMBER 1, 2026, AND EACH DECEMBER 1
THEREAFTER, THE SECRETARY OF AGRICULTURE MAY ADOPT REGULATIONS TO
ESTABLISH SHALL REPORT TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257
OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY ON ADDITIONAL
TYPES OF EQUIPMENT THAT THE SECRETARY RECOMMENDS SHOULD QUALIFY AS
ENHANCED AGRICULTURAL MANAGEMENT EQUIPMENT UNDER PARAGRAPH (1)(I)8
OF THIS SUBSECTION.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Tax – General
10–758.
(A) SUBJECT TO THE LIMITATIONS OF THIS SECTION, A TAXPAYER WHO IS A
PARENT OF A STILLBORN CHILD MAY CLAIM A CREDIT AGAINST THE STATE INCOME
TAX IN AN AMOUNT EQUAL TO $1,000 FOR EACH BIRTH FOR WHICH A CERTIFICATE
OF BIRTH RESULTING IN STILLBIRTH HAS BEEN ISSUED UNDER § 4–213.1 OF THE
HEALTH – GENERAL ARTICLE OR FOR WHICH A CERTIFICATE OF FETAL DEATH OR
ITS EQUIVALENT HAS BEEN ISSUED BY ANOTHER STATE.
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WES MOORE, Governor Ch. 327
(B) THE AMOUNT OF THE CREDIT SHALL BE REDUCED BY $50 FOR EACH
$1,000, OR FRACTION THEREOF, BY WHICH THE TAXPAYER’S FEDERAL ADJUSTED
GROSS INCOME EXCEEDS:
(1) $100,000 IN THE CASE OF AN INDIVIDUAL; OR
(2) $150,000 IN THE CASE OF A MARRIED COUPLE FILING A JOINT
INCOME TAX RETURN.
(C) THE CREDIT ALLOWED UNDER THIS SECTION MAY BE CLAIMED ONLY FOR
THE TAXABLE YEAR IN WHICH THE STILLBIRTH OCCURRED.
(D) IF THE CREDIT ALLOWED UNDER THIS SECTION IN ANY TAXABLE YEAR
EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR, THE TAXPAYER MAY
CLAIM A REFUND IN THE AMOUNT OF THE EXCESS.
SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be
applicable to all taxable years beginning after December 31, 2026.
SECTION 2. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 2026, and shall be applicable to all taxable years beginning after December 31, 2025.
Approved by the Governor, April 28, 2026.
–5–Every fact on this page links to its source, starting with the official bill record.