MD
Maryland House Bill HB554

Maryland 2023 Regular Session

Maryland House Bill HB554 Compare Versions

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1- WES MOORE, Governor Ch. 613
21
3-– 1 –
4-Chapter 613
5-(House Bill 554)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0554*
89
9-Income Tax – Subtraction Modification for Military Retirement Income
10-(Keep Our Heroes Home Act)
10+HOUSE BILL 554
11+Q3 3lr0123
12+ CF SB 553
13+By: The Speaker (By Request – Administration) and Delegates Rogers, Charles,
14+Addison, Allen, Alston, Amprey, Anderton, Attar, Bagnall, Boafo, Boyce,
15+Buckel, Cardin, Conaway, Crosby, Crutchfield, Cullison, Davis, Fennell,
16+Foley, Forbes, Fraser–Hidalgo, Ghrist, Grossman, Guyton, Harris, Hartman,
17+Henson, Holmes, Hornberger, Hutchinson, Ivey, Jacobs, D. Jones,
18+Kaufman, Kelly, Kipke, Lopez, Mangione, McComas, M. Morgan, Pasteur,
19+Patterson, Phillips, Pippy, Queen, Reznik, Rose, Rosenberg,
20+Sample–Hughes, Shetty, Simmons, Simpson, Smith, Stein, Taveras, Toles,
21+Turner, Valderrama, Vogel, Watson, Wells, Wilkins, Williams, Wivell, Woods,
22+Wu, Young, and Ziegler Ziegler, Arentz, Atterbeary, D. Barnes, Ebersole,
23+Fair, Feldmark, Griffith, R. Long, Miller, and Mireku–North
24+Introduced and read first time: February 2, 2023
25+Assigned to: Ways and Means
26+Committee Report: Favorable with amendments
27+House action: Adopted
28+Read second time: March 5, 2023
1129
12-FOR the purpose of increasing the amount of a certain subtraction modification under the
13-Maryland income tax for certain military retirement income received by individuals,
14-regardless of age, during the taxable year for certain military service; and generally
15-relating to a subtraction modification under the Maryland income tax for military
16-retirement income.
30+CHAPTER ______
1731
18-BY repealing and reenacting, without amendments,
19- Article – Tax – General
20- Section 10–207(a)
21- Annotated Code of Maryland
22- (2022 Replacement Volume)
32+AN ACT concerning 1
2333
24-BY repealing and reenacting, with amendments,
25- Article – Tax – General
26-Section 10–207(q)
27- Annotated Code of Maryland
28- (2022 Replacement Volume)
34+Income Tax – Subtraction Modification for Military Retirement Income 2
35+(Keep Our Heroes Home Act) 3
2936
30- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
31-That the Laws of Maryland read as follows:
37+FOR the purpose of increasing the amount of a certain subtraction modification under the 4
38+Maryland income tax for certain military retirement income received by individuals, 5
39+regardless of age, during the taxable year for certain military service; and generally 6
40+relating to a subtraction modification under the Maryland income tax for military 7
41+retirement income. 8
3242
33-Article – Tax – General
43+BY repealing and reenacting, without amendments, 9
44+ Article – Tax – General 10
45+ Section 10–207(a) 11
46+ Annotated Code of Maryland 12
47+ (2022 Replacement Volume) 13
48+ 2 HOUSE BILL 554
3449
35-10–207.
3650
37- (a) To the extent included in federal adjusted gross income, the amounts under
38-this section are subtracted from the federal adjusted gross income of a resident to determine
39-Maryland adjusted gross income.
51+BY repealing and reenacting, with amendments, 1
52+ Article – Tax – General 2
53+Section 10–207(q) 3
54+ Annotated Code of Maryland 4
55+ (2022 Replacement Volume) 5
4056
41- (q) (1) (i) In this subsection the following words have the meanings
42-indicated.
57+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
58+That the Laws of Maryland read as follows: 7
4359
44- (ii) “Military retirement income” means retirement income,
45-including death benefits, received as a result of military service.
60+Article – Tax – General 8
4661
47- (iii) “Military service” means:
48- Ch. 613 2023 LAWS OF MARYLAND
62+10–207. 9
4963
50-– 2 –
51- 1. induction into the armed forces of the United States for
52-training and service under the Selective Training and Service Act of 1940 or a subsequent
53-act of a similar nature;
64+ (a) To the extent included in federal adjusted gross income, the amounts under 10
65+this section are subtracted from the federal adjusted gross income of a resident to determine 11
66+Maryland adjusted gross income. 12
5467
55- 2. membership in a reserve component of the armed forces of
56-the United States;
68+ (q) (1) (i) In this subsection the following words have the meanings 13
69+indicated. 14
5770
58- 3. membership in an active component of the armed forces of
59-the United States;
71+ (ii) “Military retirement income” means retirement income, 15
72+including death benefits, received as a result of military service. 16
6073
61- 4. membership in the Maryland National Guard; or
74+ (iii) “Military service” means: 17
6275
63- 5. active duty with the commissioned corps of the Public
64-Health Service, the National Oceanic and Atmospheric Administration, or the Coast and
65-Geodetic Survey.
76+ 1. induction into the armed forces of the United States for 18
77+training and service under the Selective Training and Service Act of 1940 or a subsequent 19
78+act of a similar nature; 20
6679
67- (2) The subtraction under subsection (a) of this section includes:
80+ 2. membership in a reserve component of the armed forces of 21
81+the United States; 22
6882
69- [(i) if, on the last day of the taxable year, the individual is under the
70-age of 55 years, the first $5,000 $12,500 of military retirement income received by an
71-individual during the taxable year; and
83+ 3. membership in an active component of the armed forces of 23
84+the United States; 24
7285
73- (ii) if, on the last day of the taxable year, the individual is at least 55
74-years old, the first $15,000 $20,000 of military retirement income received by an individual
75-during the taxable year]
86+ 4. membership in the Maryland National Guard; or 25
7687
77- (I) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31,
78-2022, BUT BEFORE JANUARY 1, 2024, THE FIRST $25,000 OF MILITARY RETIREME NT
79-INCOME RECEIVED BY A N INDIVIDUAL DURING THE TAXABLE YEAR ; AND
88+ 5. active duty with the commissioned corps of the Public 26
89+Health Service, the National Oceanic and Atmospheric Administration, or the Coast and 27
90+Geodetic Survey. 28
8091
81- (II) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31,
82-2023, THE FIRST $40,000 OF MILITARY RETIREME NT INCOME RECEIVED B Y AN
83-INDIVIDUAL DURING TH E TAXABLE YEAR .
92+ (2) The subtraction under subsection (a) of this section includes: 29
8493
85- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
86-1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022.
94+ [(i) if, on the last day of the taxable year, the individual is under the 30
95+age of 55 years, the first $5,000 $12,500 of military retirement income received by an 31
96+individual during the taxable year; and 32
97+ HOUSE BILL 554 3
8798
88-Approved by the Governor, May 12, 2023.
99+
100+ (ii) if, on the last day of the taxable year, the individual is at least 55 1
101+years old, the first $15,000 $20,000 of military retirement income received by an individual 2
102+during the taxable year] 3
103+
104+ (I) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 4
105+2022, BUT BEFORE JANUARY 1, 2024, THE FIRST $25,000 OF MILITARY RETIREME NT 5
106+INCOME RECEIVED BY A N INDIVIDUAL DURING THE TAXABLE YEAR ; AND 6
107+
108+ (II) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 7
109+2023, THE FIRST $40,000 OF MILITARY RETIREME NT INCOME RECEIVED B Y AN 8
110+INDIVIDUAL DURING TH E TAXABLE YEAR . 9
111+
112+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 10
113+1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022. 11
114+
115+
116+
117+
118+
119+Approved:
120+________________________________________________________________________________
121+ Governor.
122+________________________________________________________________________________
123+ Speaker of the House of Delegates.
124+________________________________________________________________________________
125+ President of the Senate.