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.
*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
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 10, 2023
CHAPTER ______
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, during the taxable year for certain military service; and generally 6
relating to a subtraction modification under the Maryland income tax for military 7
retirement income. 8
BY repealing and reenacting, without amendments, 9
Article – Tax – General 10
Section 10–207(a) 11
Annotated Code of Maryland 12
(2022 Replacement Volume) 13
BY repealing and reenacting, with amendments, 14
Article – Tax – General 15
Section 10–207(q) 16
Annotated Code of Maryland 17
(2022 Replacement Volume) 18
2 SENATE BILL 553
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Tax – General 3
10–207. 4
(a) To the extent included in federal adjusted gross income, the amounts under 5
this section are subtracted from the federal adjusted gross income of a resident to determine 6
Maryland adjusted gross income. 7
(q) (1) (i) In this subsection the following words have the meanings 8
indicated. 9
(ii) “Military retirement income” means retirement income, 10
including death benefits, received as a result of military service. 11
(iii) “Military service” means: 12
1. induction into the armed forces of the United States for 13
training and service under the Selective Training and Service Act of 1940 or a subsequent 14
act of a similar nature; 15
2. membership in a reserve component of the armed forces of 16
the United States; 17
3. membership in an active component of the armed forces of 18
the United States; 19
4. membership in the Maryland National Guard; or 20
5. active duty with the commissioned corps of the Public 21
Health Service, the National Oceanic and Atmospheric Administration, or the Coast and 22
Geodetic Survey. 23
(2) The subtraction under subsection (a) of this section includes: 24
[(i) if, on the last day of the taxable year, the individual is under the 25
age of 55 years, the first $5,000 $12,500 of military retirement income received by an 26
individual during the taxable year; and 27
(ii) if, on the last day of the taxable year, the individual is at least 55 28
years old, the first $15,000 $20,000 of military retirement income received by an individual 29
during the taxable year] 30
SENATE BILL 553 3
(I) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 1
2022, BUT BEFORE JANUARY 1, 2024, THE FIRST $25,000 OF MILITARY RETIREME NT 2
INCOME RECEIVED BY A N INDIVIDUAL DURING THE TAXABLE YEAR ; AND 3
(II) FOR A TAXABLE YEAR B EGINNING AFTER DECEMBER 31, 4
2023, THE FIRST $40,000 OF MILITARY RETIREME NT INCOME RECEIVED B Y AN 5
INDIVIDUAL DURING TH E TAXABLE YEAR . 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
1, 2023, and shall be applicable to all taxable years beginning after December 31, 2022. 8
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.