EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0928*
SENATE BILL 928
Q7 4lr3212
CF HB 1014
By: Senator Mautz
Introduced and read first time: February 2, 2024
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Maryland Estate Tax – Unified Credit 2
FOR the purpose of altering a certain limit on the unified credit used for determining the 3
Maryland estate tax for decedents dying on or after a certain date; altering a certain 4
limitation on the amount of the Maryland estate tax for decedents dying on or after 5
a certain date; and generally relating to the Maryland estate tax. 6
BY repealing and reenacting, without amendments, 7
Article – Tax – General 8
Section 7–309(a) 9
Annotated Code of Maryland 10
(2022 Replacement Volume and 2023 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Tax – General 13
Section 7–309(b)(1) through (3) 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2023 Supplement) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – Tax – General 19
7–309. 20
(a) Notwithstanding an Act of Congress that repeals or reduces the federal credit 21
under § 2011 of the Internal Revenue Code, the provisions of this subtitle in effect before 22
the passage of the Act of Congress shall apply with respect to a decedent who dies after the 23
effective date of the Act of Congress so as to continue the Maryland estate tax in force 24 2 SENATE BILL 928
without reduction in the same manner as if the federal credit had not been repealed or 1
reduced. 2
(b) (1) Except as provided in paragraphs (2) through (9) of this subsection and 3
subsection (c) of this section, after the effective date of an Act of Congress described in 4
subsection (a) of this section, the Maryland estate tax shall be determined using: 5
(i) the federal credit allowable by § 2011 of the Internal Revenue 6
Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of 7
Congress; and 8
(ii) other provisions of federal estate tax law, INCLUDING THE 9
APPLICABLE UNIFIED C REDIT ALLOWED AGAINS T THE FEDERAL ESTATE TAX, as in 10
effect on the date of the decedent’s death. 11
(2) Except as provided in paragraphs (3) through (9) of this subsection and 12
subsection (c) of this section, if the federal estate tax is not in effect on the date of the 13
decedent’s death, the Maryland estate tax shall be determined using: 14
(i) the federal credit allowable by § 2011 of the Internal Revenue 15
Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of 16
Congress; and 17
(ii) other provisions of federal estate tax law, INCLUDING THE 18
APPLICABLE UNIFIED C REDIT ALLOWED AGAINS T THE FEDERAL ESTATE TAX, as in 19
effect on the date immediately preceding the effective date of the repeal of the federal estate 20
tax. 21
(3) (i) Notwithstanding any increase in the unified credit allowed 22
against the federal estate tax for decedents dying after 2003, the unified credit used for 23
determining the Maryland estate tax for a decedent DYING BEFORE JANUARY 1, 2025, 24
may not exceed the applicable credit amount corresponding to an applicable exclusion 25
amount, within the meaning of § 2010(c) of the Internal Revenue Code, of: 26
1. $1,000,000 for a decedent dying before January 1, 2015; 27
2. $1,500,000 for a decedent dying on or after January 1, 28
2015, but before January 1, 2016; 29
3. $2,000,000 for a decedent dying on or after January 1, 30
2016, but before January 1, 2017; 31
4. $3,000,000 for a decedent dying on or after January 1, 32
2017, but before January 1, 2018; 33
5. $4,000,000 for a decedent dying on or after January 1, 34
2018, but before January 1, 2019; and 35 SENATE BILL 928 3
6. $5,000,000 for a decedent dying on or after January 1, 1
2019, BUT BEFORE JANUARY 1, 2025, plus any deceased spousal unused exclusion 2
amount calculated in accordance with paragraph (9) of this subsection. 3
(ii) The Maryland estate tax shall be determined without regard to 4
any deduction for State death taxes allowed under § 2058 of the Internal Revenue Code. 5
(iii) Unless the federal credit allowable by § 2011 of the Internal 6
Revenue Code is in effect on the date of the decedent’s death, the federal credit used to 7
determine the Maryland estate tax may not exceed 16% of the amount by which th e 8
decedent’s taxable estate, as defined in § 2051 of the Internal Revenue Code, exceeds: 9
1. $1,000,000 for a decedent dying before January 1, 2015; 10
2. $1,500,000 for a decedent dying on or after January 1, 11
2015, but before January 1, 2016; 12
3. $2,000,000 for a decedent dying on or after January 1, 13
2016, but before January 1, 2017; 14
4. $3,000,000 for a decedent dying on or after January 1, 15
2017, but before January 1, 2018; 16
5. $4,000,000 for a decedent dying on or after January 1, 17
2018, but before January 1, 2019; [and] 18
6. $5,000,000 for a decedent dying on or after January 1, 19
2019, BUT BEFORE JANUARY 1, 2025, plus any deceased spousal unused exclusion 20
amount calculated in accordance with paragraph (9) of this subsection; AND 21
7. THE APPLICABLE EXCLU SION AMOUNT 22
CORRESPONDING TO THE APPLICABLE UNIFIED C REDIT UNDER PARAGRAP H (1) OR 23
(2) OF THIS SUBSECTION F OR A DECEDENT DYING ON OR AFTER JANUARY 1, 2025. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
1, 2024. 26