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WES MOORE, Governor Ch. 689
Chapter 689
(Senate Bill 194)
AN ACT concerning
Income and Property Tax Incentives – Members and Veterans of the Space
Force – Application
FOR the purpose of applying certain provisions of law relating to the job creation tax credit
and certain property tax credits and exemptions for certain members, veterans, and
surviving spouses of certain members and veterans of the military, naval, or air
service to certain members, veterans, and surviving spouses of certain members and
veterans of the space force; and generally relating to income and property tax
incentives for members, veterans, and surviving spouses of members and veterans
of the space force.
BY repealing and reenacting, with amendments,
Article – State Government
Section 9–901
Annotated Code of Maryland
(2021 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
Article – Economic Development
Section 6–301(a)
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Economic Development
Section 6–301(e)
Annotated Code of Maryland
(2024 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
Article – Tax – Property
Section 1–101(a), 9–265(a)(1), and 9–323(g)(1)(i)
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
BY adding to
Article – Tax – Property
Section 1–101(a–2)
Annotated Code of Maryland
(2019 Replacement Volume and 2025 Supplement)
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Ch. 689 2026 LAWS OF MARYLAND
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 1–101(a–2), 7–208(a) and (d)(1), 9–265(a)(2) and (d)(1), and 9–323(g)(1)(ii)
Annotated Code of Maryland
(2019 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 – State Government
9–901.
(a) In this subtitle the following words have the meanings indicated.
(b) “Active duty” has the meaning stated in 37 U.S.C. § 101.
(c) “ACTIVE MILITARY, NAVAL, AIR, OR SPACE SERVICE” HAS THE MEANING
STATED IN 38 U.S.C. § 101.
(D) “Active service member” means an individual who is:
(1) an active duty member of the uniformed services; or
(2) serving in a reserve component of the uniformed services on active duty
orders.
[(d)] (E) “Armed forces” has the meaning stated in 10 U.S.C. § 101.
[(e)] (F) “Board” means the Board of Trustees of the Maryland Veterans Trust.
[(f)] (G) “Department” means the Department of Veterans and Military
Families.
[(g)] (H) “Military family” includes the spouse and dependent children of a
service member or veteran related by blood, marriage, or adoption.
[(h)] (I) “Reserve component” has the meaning stated in 37 U.S.C. § 101.
[(i)] (J) “Secretary” means the Secretary of Veterans and Military Families.
[(j)] (K) “Service member” means an individual who is a member of:
(1) the uniformed services; or
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WES MOORE, Governor Ch. 689
(2) a reserve component of the uniformed services.
[(k)] (L) “Trust” means the Maryland Veterans Trust.
[(l)] (M) “Uniformed services” has the meaning stated in 37 U.S.C. § 101.
[(m)] (N) Except as otherwise provided in this subtitle, “veteran” has the
meaning stated in 38 U.S.C. § 101.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Economic Development
6–301.
(a) In this subtitle the following words have the meanings indicated.
(e) “Qualified veteran employee” means an individual who:
(1) is honorably discharged or released under honorable circumstances
from active military, naval, [or] air, OR SPACE service as defined in [38 U.S.C. § 101] §
9–901 OF THE STATE GOVERNMENT ARTICLE; and
(1) IS A VETERAN; AND
(2) is a qualified veteran as defined under § 51(d)(3)(A) of the Internal
Revenue Code for purposes of the federal Work Opportunity Tax Credit.
SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Tax – Property
1–101.
(a) In this article the following words have the meanings indicated.
(A–2) “ACTIVE MILITARY, NAVAL, AIR, OR SPACE SERVICE” HAS THE MEANING
STATED IN § 9–901 OF THE STATE GOVERNMENT ARTICLE.
[(a–2)] (A–3) “Active service member” has the meaning stated in § 9–901 of the
State Government Article.
7–208.
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Ch. 689 2026 LAWS OF MARYLAND
(a) (1) In this section the following words have the meanings indicated.
(2) “Disabled active duty service member” means an individual in active
[service of the] military, naval, [or] air, OR SPACE service [as defined in 38 U.S.C. § 101]
who has a service connected physical disability that:
(i) is reasonably certain to continue for the life of the service
member; and
(ii) was not caused or incurred by misconduct of the service member.
(3) (i) “Disabled veteran” means an individual who:
1. is honorably discharged or released under honorable
circumstances from active military, naval, [or] air, OR SPACE service [as defined in 38
U.S.C. § 101]; and
1. IS A VETERAN; AND
2. has been declared by the U.S. Department of Veterans
Affairs to have a permanent 100% service connected disability that results from blindness
or other disabling cause that:
A. is reasonably certain to continue for the life of the veteran;
and
B. was not caused or incurred by misconduct of the veteran.
(ii) “Disabled veteran” includes an individual who qualifies
posthumously for a 100% service connected disability.
(4) “Dwelling house”:
(i) means real property that is:
1. the legal residence of a disabled active duty service
member, disabled veteran, or surviving spouse; and
2. occupied by not more than 2 families; and
(ii) includes the lot or curtilage and structures necessary to use the
real property as a residence.
(5) “Individual who died in the line of duty” means an individual who died
while in the active military, naval, [or] air, OR SPACE service [of the United States] as a
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WES MOORE, Governor Ch. 689
result of an injury or disease that is deemed under 38 U.S.C. § 105 to have been incurred
in the line of duty.
(6) “Surviving spouse” means an individual who has not remarried and
who:
(i) is the surviving spouse of a disabled veteran;
(ii) is the surviving spouse of an individual who died in the line of
duty; or
(iii) receives Dependency and Indemnity Compensation from the U.S.
Department of Veterans Affairs.
(d) (1) A disabled veteran or a surviving spouse of a disabled veteran shall
apply for an exemption under this section by providing to the supervisor:
(i) a copy of the disabled veteran’s discharge certificate from active
military, naval, [or] air, OR SPACE service; and
(ii) 1. on the form provided by the Department, a certification of
the disabled veteran’s disability from the U.S. Department of Veterans Affairs; or
2. a rating decision of the disabled veteran’s disability from
the U.S. Department of Veterans Affairs that includes the effective date of the rating
decision.
9–265.
(a) (1) In this section the following words have the meanings indicated.
(2) “Disabled veteran” means an individual who:
(i) is honorably discharged or released under honorable
circumstances from active military, naval, [or] air, OR SPACE service [as defined in 38
U.S.C. § 101]; and
(I) IS A VETERAN; AND
(ii) 1. has been declared by the U.S. Department of Veterans
Affairs to have a permanent service–connected disability of at least 50% that results from
blindness or any other disabling cause that:
A. is reasonably certain to continue for the life of the veteran;
and
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Ch. 689 2026 LAWS OF MARYLAND
B. was not caused or incurred by misconduct of the veteran;
or
2. has been declared by the U.S. Department of Veterans
Affairs to have a nonpermanent service–connected disability of 100% that results from
blindness or any other disabling cause that was not caused or incurred by misconduct of
the veteran.
(d) (1) A disabled veteran shall apply for the property tax credit under this
section by providing to the county or municipal corporation:
(i) a copy of the disabled veteran’s discharge certificate from active
military, naval, [or] air, OR SPACE service; and
(ii) on the form provided by the county or municipal corporation, a
certification of the disabled veteran’s disability from the U.S. Department of Veterans
Affairs.
9–323.
(g) (1) (i) In this subsection the following words have the meanings
indicated.
(ii) 1. “Disabled veteran” means an individual who:
A. is honorably discharged or released under honorable
circumstances from active military, naval, [or] air, OR SPACE service [as defined in 38
U.S.C. § 101]; and
A. IS A VETERAN; AND
B. has been declared by the U.S. Department of Veterans
Affairs to have a permanent service–connected disability that results from blindness or
other disabling cause that:
I. is reasonably certain to continue for the life of the veteran;
and
II. was not caused or incurred by misconduct of the veteran.
2. “Disabled veteran” includes an individual who qualifies
posthumously for a service–connected disability.
SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall be
applicable to all taxable years beginning after December 31, 2025.
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WES MOORE, Governor Ch. 689
SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall be
applicable to all taxable years beginning after June 30, 2026.
SECTION 6. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.
Approved by the Governor, May 26, 2026.
–7–Every fact on this page links to its source, starting with the official bill record.