Shown verbatim: the complete text as captured from the official PDF posted by the Maryland General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
WES MOORE, Governor Ch. 315
Chapter 315
(Senate Bill 163)
AN ACT concerning
Income Tax – Addition Modification for Federal Tax–Exempt Income –
Alterations Study
FOR the purpose of providing that requiring the Office of the Comptroller, on or before a
certain date, to study and report to the Governor and the General Assembly regarding
certain matters related to an addition modification under the Maryland income tax
for certain income exempt from federal tax by federal law or treaty but not State tax
does not apply to certain foreign earned income; and generally relating to the
calculation of Maryland adjusted gross income and a study on the taxation of federal
tax–exempt income.
BY repealing and reenacting, without amendments,
Article – Tax – General
Section 10–204(a)
Annotated Code of Maryland
(2022 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – General
Section 10–204(c)(1)
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:, on or before December 1, 2026, the Office of the
Comptroller shall study and report to the Governor and, in accordance with § 2–1257 of the
State Government Article, the General Assembly regarding:
(1) the number of residents who have foreign earned income within the
meaning of § 911(b)(1) of the Internal Revenue Code;
(2) the number of residents who have foreign earned income that exceeds the
limitation under § 911(b)(2) of the Internal Revenue Code and the aggregate amount of that
income; and
(3) the countries from which the residents described under items (1) and (2)
of this section earned foreign earned income within the meaning of § 911(b) of the Internal
Revenue Code.
Article – Tax – General
–1–
Ch. 315 2026 LAWS OF MARYLAND
10–204.
(a) To the extent excluded from federal adjusted gross income, the amounts under
this section are added to the federal adjusted gross income of a resident to determine
Maryland adjusted gross income.
(c) (1) (I) THIS PARAGRAPH DOES NOT APPLY TO FOREIGN EARNED
INCOME WITHIN THE MEANING OF § 911(B)(1) OF THE INTERNAL REVENUE CODE,
SUBJECT TO THE LIMITATION UNDER § 911(B)(2) OF THE INTERNAL REVENUE
CODE.
(II) If exempted by federal law or by treaty from federal but not State
tax on income, the addition under subsection (a) of this section includes salary, wages, or
other compensation for personal services.
SECTION 2. 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.
–2–Every fact on this page links to its source, starting with the official bill record.