Maryland Senate Bill SB693

Maryland 2022 Regular Session

• Introduced: 2/4/22
• Refer: 2/4/22

Caption

Income Tax - Expensing of Business Property - Recoupling With Federal Law

Impact

The bill proposes to repeal existing Maryland income tax modifications that currently affect the deductions for business property expenses. By recoupling with federal law, the legislation seeks to enhance the state's economic environment by allowing businesses to take advantage of more favorable tax treatments as provided under the federal tax code. This could potentially lead to increased investments in business property, thereby impacting state economic development positively.

Summary

Senate Bill 693, titled 'Income Tax - Expensing of Business Property - Recoupling With Federal Law,' aims to amend Maryland's income tax regulations related to the expensing of business property. This bill introduces modifications to ensure that Maryland's tax code aligns more closely with federal laws concerning the treatment of business property expenses, specifically regarding the deductions available for business property placed in service. The goal is to simplify taxation for businesses and align state tax practices with federal standards to promote consistency and clarity.

Contention

While proponents of SB 693 support the alignment with federal law as a means of reducing complexity for businesses, there are concerns from opponents regarding the potential loss of specific state-level deductions that may cater to the unique needs of Maryland businesses. Critics argue that while federal standards offer certain benefits, they may not address specific local economic conditions, thus potentially disadvantaging some local enterprises. The legislative discussions surrounding this bill highlight the ongoing debate over state versus federal tax policies and their impacts on local economies.