EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0553*
SENATE BILL 553
Q3 3lr0122
CF HB 554
By: The President (By Request – Administration) and Senators Jackson,
Jennings, Smith, Bailey, Beidle, Benson, Brooks, Carozza, Corderman,
Elfreth, Ellis, Folden, Gallion, Gile, Griffith, Hershey, Hester, Hettleman,
James, Kagan, King, Klausmeier, McKay, Ready, Salling, Waldstreicher,
Watson, West, and Zucker
Introduced and read first time: February 6, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Subtraction Modification for Military Retirement Income 2
(Keep Our Heroes Home Act ) 3
FOR the purpose of increasing the amount of a certain subtraction modification under the 4
Maryland income tax for certain military retirement income received by individuals, 5
regardless of age, for certain military service; and generally relating to a subtraction 6
modification under the Maryland income tax for military retirement income. 7
BY repealing and reenacting, without amendments, 8
Article – Tax – General 9
Section 10–207(a) 10
Annotated Code of Maryland 11
(2022 Replacement Volume) 12
BY repealing and reenacting, with amendments, 13
Article – Tax – General 14
Section 10–207(q) 15
Annotated Code of Maryland 16
(2022 Replacement Volume) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Tax – General 20
10–207. 21
2 SENATE BILL 553
(a) To the extent included in federal adjusted gross income, the amounts under 1
this section are subtracted from the federal adjusted gross income of a resident to determine 2
Maryland adjusted gross income. 3
(q) (1) (i) In this subsection the following words have the meanings 4
indicated. 5
(ii) “Military retirement income” means retirement income, 6
including death benefits, received as a result of military service. 7
(iii) “Military service” means: 8
1. induction into the armed forces of the United States for 9
training and service under the Selective Training and Service Act of 1940 or a subsequent 10
act of a similar nature; 11
2. membership in a reserve component of the armed forces of 12
the United States; 13
3. membership in an active component of the armed forces of 14
the United States; 15
4. membership in the Maryland National Guard; or 16
5. active duty with the commissioned corps of the Public 17
Health Service, the National Oceanic and Atmospheric Administration, or the Coast and 18
Geodetic Survey. 19
(2) The subtraction under subsection (a) of this section includes: 20
[(i) if, on the last day of the taxable year, the individual is under the 21
age of 55 years, the first $5,000 of military retirement income received by an individual 22
during the taxable year; and 23
(ii) if, on the last day of the taxable year, the individual is at least 55 24
years old, the first $15,000 of military retirement income received by an individual during 25
the taxable year] 26
(I) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 27
2022, BUT BEFORE JANUARY 1, 2024, THE FIRST $25,000 OF MILITARY RETIREME NT 28
INCOME RECEIVED BY A N INDIVIDUAL DURING THE TAXABLE YEAR ; AND 29
(II) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 30
2023, THE FIRST $40,000 OF MILITARY RETIREME NT INCOME RECEIVED B Y AN 31
INDIVIDUAL DURING TH E TAXABLE YEAR . 32
SENATE BILL 553 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2023. 2