Maryland Senate Bill SB622

Maryland 2022 Regular Session

• Introduced: 2/2/22
• Refer: 2/2/22

Caption

Income Tax - Credit for Travel, Hospitality, and Entertainment

Impact

The bill is expected to incentivize travel within the state, particularly aiming to support the hospitality and entertainment sectors that have been significantly affected, especially in the wake of the pandemic. By allowing individuals to claim these expenses as tax credits, the legislation is designed to stimulate economic activity in Maryland’s tourism and hospitality industries. It is also anticipated that this will help in the recovery of businesses operating in these sectors by encouraging both personal and business-associated travel.

Summary

Senate Bill 622, titled 'Income Tax – Credit for Travel, Hospitality, and Entertainment', aims to establish a tax credit for individuals covering certain expenses incurred related to travel, hospitality, and entertainment. This bill proposes that individuals can claim a credit against their State income tax for qualifying expenses during specific taxable years, from December 31, 2021, to January 1, 2024. The credit can be claimed for expenses such as food, lodging, transportation, and attendance at events like conferences or sporting events, given that the travel distance is at least 50 miles from the individual's residence.

Contention

Notable points of contention surrounding SB 622 include concerns about the potential financial impact on state tax revenue, given that the total amount of credits issued cannot exceed $3.2 million per taxable year. Critics may voice worries regarding equity, particularly whether such tax credits primarily benefit higher-income individuals who are more likely to incur travel expenses. Additionally, as the bill is framed around supporting local economies, there may be skepticism about the effectiveness of such measures in genuinely revitalizing the sector compared to other forms of economic stimulus or support.