EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0198*
SENATE BILL 198
Q3 4lr0464
(PRE–FILED) CF 4lr1024
By: Senator Benson
Requested: July 11, 2023
Introduced and read first time: January 10, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Credit for Parent and Guardian Volunteers in Elementary and 2
Secondary Schools 3
FOR the purpose of allowing certain eligible taxpayers who volunteer in a certain school a 4
credit against the State income tax; requiring the State Department of Education, in 5
consultation with the Comptroller, to develop and make available a certain 6
application and tax credit certificate; requiring a certain county board member or 7
school administrator to issue tax credit certificates in a certain manner; making the 8
credit refundable under certain circumstances; and generally relating to a credit 9
against the State income tax for volunteering in certain schools. 10
BY repealing and reenacting, without amendments, 11
Article – Education 12
Section 1–101(a) and (d) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2023 Supplement) 15
BY adding to 16
Article – Tax – General 17
Section 10–758 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2023 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Education 23
1–101. 24
2 SENATE BILL 198
(a) In this article, unless the context requires otherwise, the following words have 1
the meanings indicated. 2
(d) “County board” means the board of education of a county and includes the 3
Baltimore City Board of School Commissioners. 4
Article – Tax – General 5
10–758. 6
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) “COUNTY BOARD” HAS THE MEANING STAT ED IN § 1–101 OF THE 9
EDUCATION ARTICLE. 10
(3) “ELIGIBLE TAXPAYER ” MEANS AN INDIVIDUAL WHO: 11
(I) 1. IS THE PARENT OF A S CHOOL STUDENT ; OR 12
2. HAS LEGAL CUSTODY OF A SCHOOL STUDENT AS A 13
LEGAL GUARDIAN ; AND 14
(II) VOLUNTEERS AT THE SC HOOL IN WHICH THE ST UDENT IS 15
ENROLLED. 16
(4) “SCHOOL” MEANS A PUBLIC OR NO NPUBLIC ELEMENTARY OR 17
SECONDARY SCHOOL IN THE STATE, INCLUDING A CHARTER SCHOOL. 18
(B) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, EACH ELIGIBLE 19
TAXPAYER, REGARDLESS OF INDIVIDUAL OR JOINT FILING STATUS, MAY CLAIM A 20
CREDIT AGAINST THE STATE INCOME TAX IN THE AMOUNT STATED ON A TAX CREDIT 21
CERTIFICATE ISSUED T O THE ELIGIBLE TAXPA YER DURING THE TAXAB LE YEAR IN 22
ACCORDANCE WITH SUBS ECTION (C) OF THIS SECTION. 23
(C) (1) THE STATE DEPARTMENT OF EDUCATION SHALL , IN 24
CONSULTATION WITH TH E COMPTROLLER , DEVELOP AND MAKE AVAILABLE AN 25
APPLICATION AND A TAX CREDIT CERTIFICA TE TO BE USED IN ACCORDANCE WITH 26
PARAGRAPH S (2) AND (3) OF THIS SUBSECTION . 27
(2) AN ELIGIBLE TAXPAYER SHALL SUBMIT AN APPL ICATION FOR A 28
CREDIT UNDER THIS SE CTION: 29
(I) IF THE STUDENT IS ENROLLED IN A PUBLIC SCHOOL , TO THE 30 SENATE BILL 198 3
COUNTY BOARD MEMBER WHO REPRESENTS THE SCHOOL; OR 1
(II) IF THE STUDENT IS ENROLLED IN A NONPUBLIC SCHOOL, TO 2
AN ADMINISTRATOR OF THE SCHOOL. 3
(3) (I) ON APPLICATION BY AN ELIGIBLE TAXPAYER UN DER 4
PARAGRAPH (2) OF THIS SUBSECTION , A COUNTY BOARD MEMBE R OR SCHOOL 5
ADMINISTRATOR SHALL ISSUE A TAX CREDIT C ERTIFICATE IN AN AMO UNT EQUAL TO 6
$20 FOR EACH HOUR THAT THE ELIGIBLE TAXPAYE R VOLUNTEERS AT THE SCHOOL 7
IN WHICH THE STUDENT IS ENROLLED. 8
(II) FOR ANY TAXABLE YEA R: 9
1. AN ELIGIBLE TAXPAYER MAY APPLY FOR AND 10
RECEIVE MORE THAN ON E TAX CREDIT CERTIFI CATE, REGARDLESS OF WHETHE R 11
ANOTHER ELIGIBLE TAX PAYER HAS RECEIVED A TAX C REDIT CERTIFICATE FO R THE 12
SAME STUDENT; AND 13
2. THE AGGREGATE AMOUNT OF THE TAX CR EDIT THAT 14
EACH ELIGIBLE TAXPAY ER MAY CLAIM MAY NOT EXCEED $500. 15
(4) THE COUNTY BOARD MEMB ER OR SCHOOL ADMINIS TRATOR 16
ISSUING A TAX CREDIT CERTIFICA TE UNDER THIS SECTION SHALL KEEP A RECORD 17
OF THE NUMBER OF VOL UNTEER HOURS ACCRUED BY EACH ELIGIBLE TAX PAYER 18
THAT RECEIVES A TAX CREDIT CERTIFICATE . 19
(D) IF THE CREDIT ALLOWED UNDER THIS SECTION I N ANY TAXABLE YEAR 20
EXCEEDS THE STATE INCOME TAX FOR THAT T AXABLE YEAR , THE ELIGIBLE 21
TAXPAYER MAY CLAIM A REFUND I N THE AMOUNT OF THE EXCESS. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 24