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.
Italics indicate opposite chamber/conference committee amendments.
*hb0172*
HOUSE BILL 172
Q3 (2lr0318)
ENROLLED BILL
— Ways and Means/Budget and Taxation —
Introduced by Delegate Luedtke
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
Speaker.
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 2 HOUSE BILL 172
BY adding to 1
Article – Tax – General 2
Section 10–204(m) and 10–208(aa) 3
Annotated Code of Maryland 4
(2016 Replacement Volume and 2021 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Tax – General 7
Section 10–305(d) 8
Annotated Code of Maryland 9
(2016 Replacement Volume and 2021 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Tax – General 13
10–204. 14
(a) To the extent excluded from federal adjusted gross income, the amounts under 15
this section are added to the federal adjusted gross income of a resident to determine 16
Maryland adjusted gross income. 17
(M) (1) (I) IN THIS SUBSECTION , “ASSIST, PROMOTE, OR DETER 18
COLLECTIVE BARGAININ G” MEANS ANY ATTEMPT BY A TAXPAYER TO INFL UENCE 19
THE DECISIONS OF THE TAXPAYER’S EMPLOYEES TO : 20
1. SUPPORT OR OPPOSE AN EMPLOYEE ORGANIZATIO N 21
THAT REPRESENTS OR S EEKS TO REPRESENT TH E EMPLOYEES OF THE T AXPAYER; 22
OR 23
2. BECOME A MEMBER OF A N EMPLOYEE 24
ORGANIZATION . 25
(II) “ASSIST, PROMOTE, OR DETER COLLECTIVE BARGAINING” 26
DOES NOT INCLUDE : 27
1. ADDRESSING A GRIEVAN CE OR NEGOTIATING OR 28
ADMINISTERING A COLL ECTIVE BARGAINING AG REEMENT; 29
2. ALLOWING AN EMPLOYEE ORGANIZATION OR A 30
REPRESENTATIVE OF AN EMPLOYEE ORGANIZATIO N ACCESS TO AND USE OF THE 31
TAXPAYER’S FACILITIES OR PROP ERTIES; 32
HOUSE BILL 172 3
3. PERFORMING AN ACTIVI TY REQUIRED BY FEDER AL 1
OR STATE LAW OR A COLLEC TIVE BARGAINING AGRE EMENT; 2
4. NEGOTIATING , ENTERING INTO , OR CARRYING OUT A 3
VOLUNTARY RECOGNITIO N AGREEMENT WITH AN EMPLOYEE ORGANIZ ATION; OR 4
5. PAYING WAGES TO A RE PRESENTED EMPLOYEE W HILE 5
THE EMPLOYEE IS PERF ORMING DUTIES IF THE PAYMENT IS PERMITTED UNDER A 6
COLLECTIVE BARGAININ G AGREEMENT . 7
(2) THE ADDITION UNDER SU BSECTION (A) OF THIS SECTION 8
INCLUDES ANY AMOUNT EXPENDED DURI NG THE TAXABLE YEAR TO ASSIST, 9
PROMOTE, OR DETER COLLECTIVE BARGAINING. 10
10–208. 11
(a) In addition to the modification under § 10–207 of this subtitle, the amounts 12
under this section are subtracted from the federal adjusted gross income of a resident to 13
determine Maryland adjusted gross income. 14
(AA) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE THE 15
SUBTRACTION ALLOWED UNDER SUBSECTION (A) OF THIS SECTION INCL UDES THE 16
AMOUNT OF UNION DUES PAID BY AN INDIVIDUA L DURING THE TAXABLE YEAR THAT 17
WOULD HAVE BEEN ALLOWED AS A DEDUCTION UNDER § 162 OF THE INTERNAL 18
REVENUE CODE WITHOUT REGARD T O THE LIMITATION IMP OSED BY § 67 OF THE 19
INTERNAL REVENUE CODE. 20
(2) THE AMOUNT OF THE SUB TRACTION ALLOWED UND ER 21
PARAGRAPH (1) OF THIS SUBSECTION M AY NOT EXCEED $300 FOR ANY TAXABLE 22
YEAR. 23
10–305. 24
(a) To the extent excluded from federal taxable income, the amounts under this 25
section are added to the federal taxable income of a corporation to determine Maryland 26
modified income. 27
(d) The addition under subsection (a) of this section includes the additions 28
required for an individual under: 29
(1) § 10–204(b) of this title (Dividends and interest from another state or 30
local obligation); 31
(2) § 10–204(c)(2) of this title (Federal tax–exempt income); 32
4 HOUSE BILL 172
(3) § 10–204(e) of this title (Oil percentage depletion allowance); 1
(4) § 10–204(i) of this title (Deduction for qualified production activities 2
income); 3
(5) § 10–204(j) of this title (Deduction for costs for security clearance 4
administrative expenses and construction and equipment costs incurred to construct or 5
renovate a sensitive compartmented information facility); [and] 6
(6) § 10–204(l) of this title (Deduction for donations to qualified permanent 7
endowment funds); AND 8
(7) § 10–204(M) OF THIS TITLE (DEDUCTION FOR EXPENSE S TO 9
ASSIST, PROMOTE, OR DETER COLLECTIVE BARGAINING). 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 11
1, 2022, and shall be applicable to all taxable years beginning after December 31, 2021. 12
Approved:
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Governor.
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Speaker of the House of Delegates.
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President of the Senate.