MSATP 2025 Legislative Session Update
Legislative Tracking Summary
The Maryland Society of Accounting and Tax Professionals (MSATP) has been actively engaged in the 2025 Maryland General Assembly session, advocating for the interests of tax professionals and their clients. Below is a comprehensive update on all bills we’re currently tracking, with status information verified from the official Maryland General Assembly website.
Bills We Support
HB63/SB261 – State Board of Public Accountancy Extension
Sponsor: House Economic Matters Committee/Senate Education, Energy and the Environment Committee
Description: Extends the termination provisions for the State Board of Public Accountancy to July 1, 2030, in accordance with the Maryland Program Evaluation Act.
MSATP Position: FAVOR
Testimony: Written
Current Status: PASSED BOTH CHAMBERS – Awaiting Governor’s signature
Committee: House Economic Matters Committee/Senate Education, Energy and the Environment
SB51/HB887 – CPA Interstate Practice Requirements
Sponsor: Senator Arthur Ellis
Description: Alters qualifications for individuals licensed as CPAs in other states to practice in Maryland.
MSATP Position: FAVOR
Testimony: Written/In-person
Current Status: PASSED BOTH CHAMBERS – Signed by the Governor on March 28, 2025
Committee: Senate Education, Energy and Environment Committee/House Economic Matters
HB352/SB321 – Budget Reconciliation and Financing Act of 2025
Sponsor: Budget Reconciliation and Financing Act of 2025
Description: Comprehensive budget measure establishing administrative penalties, altering appropriations, establishing funds, modifying income tax rates, and requiring combined corporate income tax returns.
MSATP Position: FAVOR with Amendments
Testimony: Written
Current Status: PASSED BOTH CHAMBERS – Signed by the Governor on April 5, 2025
Committee: House Appropriations Committee/Senate Budget and Taxation Committee
HB327 – Long-Term Care Insurance Tax Credit Modification
Sponsor: Delegate Vaughn Stewart
Description: Limits eligibility for the long-term care insurance tax credit for policies purchased before January 1, 2005, to taxpayers who are at least 85 years old with Maryland AGI less than $100,000 (individual) or $200,000 (joint filers).
MSATP Position: FAVOR
Testimony: Written
Current Status: Unfavorable Report by Ways and Means; Withdrawn
Committee: House Ways and Means Committee
HB355 – Retirement Income Subtraction Modification Expansion
Sponsor: Delegate Robin Grammer
Description: Includes income from certain retirement plans within the subtraction modification for individuals 65+ or disabled; increases maximum amount and repeals certain limitations.
MSATP Position: FAVOR
Testimony: Written
Current Status: Hearing held; No further action taken
Committee: House Ways and Means Committee
SB355 – Family and Medical Leave Insurance Program Implementation Delay
Sponsor: Senator Stephen Hershey
Description: Delays the contribution payment start date to July 1, 2027, and benefit claims submission to July 1, 2028, under the Family and Medical Leave Insurance Program.
MSATP Position: FAVOR
Testimony: Written
Current Status: Unfavorable Report by Finance; Withdrawn
Committee: Senate Finance Committee
SB412 – College Savings Plan Subtraction Modification Increase
Sponsor: Senator Jeff Waldstreicher
Description: Increases from $2,500 to $4,850 the subtraction modification for contributions to Maryland college savings plans beginning after December 31, 2025.
MSATP Position: FAVOR
Testimony: Written
Current Status: Passed Senate (45-0); In House Ways and Means
Committee: Senate Budget and Taxation Committee
Bills We Oppose
HB149 – Child Support Payments Income Tax Subtraction
Sponsor: Delegate Caylin Young
Description: Would allow subtraction modification for child support payments required by court order.
MSATP Position: OPPOSE
Testimony: Written
Current Status: Withdrawn by Sponsor – WIN
Committee: House Ways and Means Committee
SB33 – Business Tax Structure and Combined Reporting Study
Sponsor: Senator Karen Lewis Young
Description: Requires the Comptroller and Department of Legislative Services to study business tax structure and combined reporting recommendations.
MSATP Position: OPPOSE
Testimony: Written
Current Status: Withdrawn prior to hearing – WIN
Committee: Senate Budget and Taxation Committee
SB414 – Stillborn Child Tax Credit
Sponsor: Senator Jeff Waldstreicher
Description: Allows a $1,000 refundable credit for parents of a stillborn child with appropriate certification.
MSATP Position: OPPOSE
Testimony: Written
Current Status: Passed Senate (28-18); Unfavorable Report by House Ways and Means – WIN
Committee: Senate Budget and Taxation Committee/House Ways and Means
SB30/HB792 – Public Safety Employee Retirement Income Subtraction Increase
Sponsor: Senator Jack Bailey/Delegate Michael Griffith
Description: Increases subtraction modification for public safety employee retirement income from $15,000 to $20,000.
MSATP Position: OPPOSE
Testimony: Written
Current Status: SB30: Unfavorable Report by Budget & Taxation; HB792: Hearing held; No further action
Committee: Senate Budget and Taxation Hearing/House Ways and Means Committee
SB59/HB183 – Residency Definition Modification for Income Tax
Sponsor: Senator Jim Rosapepe/Delegate Lorig Charkoudian
Description: Alters residency definition to include individuals maintaining a place of abode in Maryland for more than 3 months (down from 6 months).
MSATP Position: OPPOSE
Testimony: Written
Current Status: SB59: Failed 23-23 on Senate floor; HB183: Unfavorable Report by Ways and Means – WIN
Committee: Senate Budget and Taxation Hearing/House Ways and Means Committee
SB99/HB60 – Military Retirement Income Subtraction Increase
Sponsor: Senator Johnny Salling/Delegate Mike Rogers
Description: Increases subtraction modification for military retirement income from $20,000 to $40,000 over a 2-year period.
MSATP Position: OPPOSE
Testimony: Written
Current Status: SB99: Unfavorable Report by Budget & Taxation; HB60: Unfavorable Report by Ways and Means – WIN
Committee: Senate Budget and Taxation Hearing/House Ways and Means Committee
SB104 – Elderly Parent Caregiver Tax Credit
Sponsor: Senator William Folden
Description: Allows a $3,000 refundable tax credit for individuals caring for elderly parents.
MSATP Position: OPPOSE
Testimony: Written
Current Status: Unfavorable Report by Budget & Taxation; Withdrawn – WIN
Committee: Senate Budget and Taxation Hearing
SB155 – Long-Term Care Insurance Tax Credit Limitation
Sponsor: Senator Jack Bailey, Senator Katherine Klausmeier
Description: Limits long-term care insurance tax credit eligibility for policies purchased before January 1, 2005, to taxpayers 85+ with income limits of $100,000/$200,000.
MSATP Position: OPPOSE
Testimony: Written
Current Status: Unfavorable Report by Budget & Taxation; Withdrawn – WIN
Committee: Senate Budget and Taxation Hearing
SB419/HB815 – Public Safety Volunteer Subtraction Increase
Sponsor: Senator Michael Jackson/Delegate Dana Stein
Description: Increases subtraction modification for qualifying public safety volunteers from $7,000 to $10,000.
MSATP Position: OPPOSE
Testimony: Written
Current Status: SB419: Unfavorable Report by Budget & Taxation; HB815: Passed House (128-8), Unfavorable Report in Senate – WIN
Committee: Senate Budget and Taxation Committee/House Ways and Means Committee
HB800 – Military Retirement Income Subtraction Increase for Under 55
Sponsor: Delegate Michael Griffith
Description: Increases subtraction modification for military retirement income from $12,500 to $20,000 for individuals under age 55.
MSATP Position: OPPOSE
Testimony: Written
Current Status: Unfavorable Report by Ways and Means; Withdrawn – WIN
Committee: House Ways and Means Committee
HB1005 – Tips and Gratuities Subtraction Modification
Sponsor: Delegate Mark Fisher
Description: Provides a subtraction modification for tips/gratuities received in food service, alcoholic beverage businesses, hotels, passenger-for-hire, and taxicab services.
MSATP Position: OPPOSE
Testimony: Written
Current Status: Unfavorable Report by Ways and Means; Withdrawn – WIN
Committee: House Ways and Means Committee
HB1321 – Small Business Cybersecurity Tax Credit
Sponsor: Delegate April Rose
Description: Authorizes a refundable tax credit for small businesses with 50 or fewer employees for cybersecurity measure costs.
MSATP Position: OPPOSE
Testimony: Written
Current Status: Unfavorable Report by Ways and Means – WIN
Committee: House Ways and Means Committee
SB1045/HB1554 – Sales and Use Tax Expansion to Business-to-Business Services
Sponsor: Senator Shelly Hettleman/Delegate David Moon
Description: Alters definitions of “taxable price” and “taxable service” to impose sales and use tax on certain business-to-business services.
MSATP Position: OPPOSE
Testimony: Pending
Current Status: SB1045: Withdrawn; HB1554: Hearing held; No further action – WIN
Committee: Senate Budget and Taxation Committee/House Ways and Means Committee
Additional Bills We’re Monitoring
SB836 – Corporate Income Tax Rate Reduction
Sponsor: Senator Johnny Mautz
Description: Gradually decreases the State corporate income tax rate from 8.25% to 6.25% over 5 years.
MSATP Position: Under review
Testimony: Written
Current Status: Unfavorable Report by Budget & Taxation; Withdrawn
Committee: Senate Budget and Taxation Committee
HB1153 – Estate Tax Unified Credit Modification
Sponsor: Delegate Christopher Adams
Description: Alters the unified credit limit for determining Maryland estate tax and limitation amount for decedents dying on or after January 1, 2026.
MSATP Position: Under review
Testimony: Written
Current Status: Unfavorable Report by Ways and Means; Withdrawn
Committee: House Ways and Means Committee
HB1390 – Personal Casualty Loss Subtraction Modification
Sponsor: Delegate Joe Vogel
Description: Allows subtraction modification for personal casualty losses from theft or fraud schemes not connected with business.
MSATP Position: Under review
Testimony: Written
Current Status: Passed House (133-2); Passed Senate (46-0); Awaiting Governor’s signature
Committee: House Ways and Means Committee
Legislative Advocacy Impact
MSATP has achieved remarkable success this legislative session with 14 clear wins on bills we opposed:
- Defeated Bills – 11 bills we opposed received unfavorable reports or were withdrawn:
- SB33 (Business Tax Structure Study)
- HB149 (Child Support Payments Subtraction)
- SB30/HB792 (Public Safety Retirement Subtraction)
- SB59/HB183 (3-Month Residency Definition Change)
- SB99/HB60 (Military Retirement Subtraction)
- SB104 (Elderly Parent Tax Credit)
- SB155 (Long-Term Care Credit Limitation)
- HB800 (Military Retirement Subtraction for Under 55)
- HB1005 (Tips and Gratuities Subtraction)
- HB1321 (Small Business Cybersecurity Credit)
- SB1045/HB1554 (Sales Tax on Business Services)
- Passed Senate but Defeated in House – 2 bills defeated in House after Senate passage:
- SB414 (Stillborn Child Tax Credit)
- HB815 (Public Safety Volunteer Subtraction)
- Successful Advocacy – 3 key bills we supported passed:
- HB63/SB261 (State Board of Public Accountancy Extension)
- SB51/HB887 (CPA Interstate Practice Requirements)
- HB352/SB321 (Budget Reconciliation and Financing Act)
- Promising Progress – 1 bill we support has passed the Senate:
- SB412 (College Savings Plan Subtraction Increase)
This impressive success rate demonstrates MSATP’s effective advocacy on behalf of tax professionals throughout the legislative session. Of the 33 bills we tracked, over 40% resulted in favorable outcomes aligned with our positions.
This legislative update was prepared by MSATP’s Advocacy team. For questions or more information about our legislative positions, please contact our office.
Last updated: April 11, 2025