EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0172*
HOUSE BILL 172
Q3 2lr0318
(PRE–FILED)
By: Delegate Luedtke
Requested: July 7, 2021
Introduced and read first time: January 12, 2022
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2022
CHAPTER ______
AN ACT concerning 1
Income Tax – Determination of Taxable Income Subtraction Modification – 2
Union Dues and Expenses to Influence Collective Bargaining 3
FOR the purpose of requiring an addition modification under the Maryland income tax for 4
certain expenses to assist, promote, or deter collective bargaining; allowing a 5
subtraction modification under the Maryland income tax for certain union dues paid 6
during the taxable year; and generally relating to modifications a subtraction 7
modification under the Maryland income tax for expenses to influence collective 8
bargaining and the payment of union dues. 9
BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 10–204(a), 10–208(a), and 10–305(a) 10–208(a) 12
Annotated Code of Maryland 13
(2016 Replacement Volume and 2021 Supplement) 14
BY adding to 15
Article – Tax – General 16
Section 10–204(m) and 10–208(aa) 17
Annotated Code of Maryland 18
(2016 Replacement Volume and 2021 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Tax – General 21 2 HOUSE BILL 172
Section 10–305(d) 1
Annotated Code of Maryland 2
(2016 Replacement Volume and 2021 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Tax – General 6
10–204. 7
(a) To the extent excluded from federal adjusted gross income, the amounts under 8
this section are added to the federal adjusted gross income of a resident to determine 9
Maryland adjusted gross income. 10
(M) (1) (I) IN THIS SUBSECTION , “ASSIST, PROMOTE, OR DETER 11
COLLECTIVE BARGAININ G” MEANS ANY ATTEMPT BY A TAXPAYER TO INFL UENCE 12
THE DECISIONS OF THE TAXPAYER’S EMPLOYEES TO : 13
1. SUPPORT OR OPPOSE AN EMPLOYEE ORGANIZATIO N 14
THAT REPRESENTS OR S EEKS TO REPRESENT TH E EMPLOYEES OF THE T AXPAYER; 15
OR 16
2. BECOME A MEMBER OF A N EMPLOYEE 17
ORGANIZATION . 18
(II) “ASSIST, PROMOTE, OR DETER COLLECTIVE B ARGAINING” 19
DOES NOT INCLUDE : 20
1. ADDRESSING A GRIEVAN CE OR NEGOTIATING OR 21
ADMINISTERING A COLL ECTIVE BARGAINING AG REEMENT; 22
2. ALLOWING AN EMPLOYEE ORGANIZATION OR A 23
REPRESENTATIVE OF AN EMPLOYEE ORGANIZATIO N ACCESS TO AND USE OF THE 24
TAXPAYER’S FACILITIES OR PROP ERTIES; 25
3. PERFORMING AN ACTIVI TY REQUIRED BY FEDER AL 26
OR STATE LAW OR A COLLEC TIVE BARGAINING AGRE EMENT; 27
4. NEGOTIATING , ENTERING INTO , OR CARRYING OUT A 28
VOLUNTARY RECOGNITIO N AGREEMENT WITH AN EMPLOYEE ORGANIZATION ; OR 29
5. PAYING WAGES TO A RE PRESENTED EMPLOYEE W HILE 30
THE EMPLOYEE IS PERF ORMING DUTIES IF THE PAYMENT IS PERMITTED UNDER A 31
COLLECTIVE BARGAININ G AGREEMENT . 32 HOUSE BILL 172 3
(2) THE ADDITION UNDER SU BSECTION (A) OF THIS SECTION 1
INCLUDES ANY AMOUNT EXPENDED DURING THE TAXABL E YEAR TO ASSIST , 2
PROMOTE, OR DETER COLLECTIVE BARGAINING. 3
10–208. 4
(a) In addition to the modification under § 10–207 of this subtitle, the amounts 5
under this section are subtracted from the federal adjusted gross income of a resident to 6
determine Maryland adjusted gross income. 7
(AA) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 8
SUBTRACTION ALLOWED UNDER SUBSECTION (A) OF THIS SECTION INCL UDES THE 9
AMOUNT OF UNION DUES PAID BY AN INDIVIDUA L DURING THE TAXABLE YEAR THAT 10
WOULD HAVE BEEN ALLO WED AS A DEDUCTION U NDER § 162 OF THE INTERNAL 11
REVENUE CODE WITHOUT REGARD T O THE LIMITATION IMP OSED BY § 67 OF THE 12
INTERNAL REVENUE CODE. 13
(2) THE AMOUNT OF THE SUB TRACTION ALLOWED UND ER 14
PARAGRAPH (1) OF THIS SUBSECTION M AY NOT EXCEE D $300 FOR ANY TAXABLE 15
YEAR. 16
10–305. 17
(a) To the extent excluded from federal taxable income, the amounts under this 18
section are added to the federal taxable income of a corporation to determine Maryland 19
modified income. 20
(d) The addition under subsection (a) of this section includes the additions 21
required for an individual under: 22
(1) § 10–204(b) of this title (Dividends and interest from another state or 23
local obligation); 24
(2) § 10–204(c)(2) of this title (Federal tax–exempt income); 25
(3) § 10–204(e) of this title (Oil percentage depletion allowance); 26
(4) § 10–204(i) of this title (Deduction for qualified production activities 27
income); 28
(5) § 10–204(j) of this title (Deduction for costs for security clearance 29
administrative expenses and construction and equipment costs incurred to construct or 30
renovate a sensitive compartmented information facility); [and] 31
4 HOUSE BILL 172
(6) § 10–204(l) of this title (Deduction for donations to qualified permanent 1
endowment funds); AND 2
(7) § 10–204(M) OF THIS TITL E (DEDUCTION FOR EXPENSE S TO 3
ASSIST, PROMOTE, OR DETER COLLECTIVE BARGAINING). 4
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 5
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 6
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.