Maryland 2025 Regular Session

Maryland House Bill HB1153 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1153
6	6
7	7	HOUSE BILL 1153
8	8	Q7 5lr2517
9	9	HB 1014/24 – W&M
10	10	By: Delegates Adams, Hornberger, Hutchinson, and Wivell
11	11	Introduced and read first time: February 6, 2025
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Maryland Estate Tax – Unified Credit 2
19	19
20	20	FOR the purpose of altering a certain limit on the unified credit used for determining the 3
21	21	Maryland estate tax for decedents dying on or after a certain date; altering a certain 4
22	22	limitation on the amount of the Maryland estate tax for decedents dying on or after 5
23	23	a certain date; and generally relating to the Maryland estate tax. 6
24	24
25	25	BY repealing and reenacting, without amendments, 7
26	26	Article – Tax – General 8
27	27	Section 7–309(a) 9
28	28	Annotated Code of Maryland 10
29	29	(2022 Replacement Volume and 2024 Supplement) 11
30	30
31	31	BY repealing and reenacting, with amendments, 12
32	32	Article – Tax – General 13
33	33	Section 7–309(b)(1) through (3) 14
34	34	Annotated Code of Maryland 15
35	35	(2022 Replacement Volume and 2024 Supplement) 16
36	36
37	37	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
38	38	That the Laws of Maryland read as follows: 18
39	39
40	40	Article – Tax – General 19
41	41
42	42	7–309. 20
43	43
44	44	(a) Notwithstanding an Act of Congress that repeals or reduces the federal credit 21
45	45	under § 2011 of the Internal Revenue Code, the provisions of this subtitle in effect before 22
46	46	the passage of the Act of Congress shall apply with respect to a decedent who dies after the 23
47	47	effective date of the Act of Congress so as to continue the Maryland estate tax in force 24 2 HOUSE BILL 1153
48	48
49	49
50	50	without reduction in the same manner as if the federal credit had not been repealed or 1
51	51	reduced. 2
52	52
53	53	(b) (1) Except as provided in paragraphs (2) through (9) of this subsection and 3
54	54	subsection (c) of this section, after the effective date of an Act of Congress described in 4
55	55	subsection (a) of this section, the Maryland estate tax shall be determined using: 5
56	56
57	57	(i) the federal credit allowable by § 2011 of the Internal Revenue 6
58	58	Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of 7
59	59	Congress; and 8
60	60
61	61	(ii) other provisions of federal estate tax law, INCLUDING THE 9
62	62	APPLICABLE UNIFIED C REDIT ALLOWED AGAINS T THE FEDERAL ESTATE TAX, as in 10
63	63	effect on the date of the decedent’s death. 11
64	64
65	65	(2) Except as provided in paragraphs (3) through (9) of this subsection and 12
66	66	subsection (c) of this section, if the federal estate tax is not in effect on the date of the 13
67	67	decedent’s death, the Maryland estate tax shall be determined using: 14
68	68
69	69	(i) the federal credit allowable by § 2011 of the Internal Revenue 15
70	70	Code as in effect before the reduction or repeal of the federal credit pursuant to the Act of 16
71	71	Congress; and 17
72	72
73	73	(ii) other provisions of federal estate tax law, INCLUDING THE 18
74	74	APPLICABLE UNIFIED C REDIT ALLOWED AGAINS T THE FEDERAL ESTATE T AX, as in 19
75	75	effect on the date immediately preceding the effective date of the repeal of the federal estate 20
76	76	tax. 21
77	77
78	78	(3) (i) Notwithstanding any increase in the unified credit allowed 22
79	79	against the federal estate tax for decedents dying after 2003, the unified credit used for 23
80	80	determining the Maryland estate tax for a decedent DYING BEFORE JANUARY 1, 2026, 24
81	81	may not exceed the applicable credit amount corresponding to an applicable exclusion 25
82	82	amount, within the meaning of § 2010(c) of the Internal Revenue Code, of: 26
83	83
84	84	1. $1,000,000 for a decedent dying before January 1, 2015; 27
85	85
86	86	2. $1,500,000 for a decedent dying on or after January 1, 28
87	87	2015, but before January 1, 2016; 29
88	88
89	89	3. $2,000,000 for a decedent dying on or after January 1, 30
90	90	2016, but before January 1, 2017; 31
91	91
92	92	4. $3,000,000 for a decedent dying on or after January 1, 32
93	93	2017, but before January 1, 2018; 33
94	94
95	95	5. $4,000,000 for a decedent dying on or after January 1, 34
96	96	2018, but before January 1, 2019; and 35 HOUSE BILL 1153 3
97	97
98	98
99	99
100	100	6. $5,000,000 for a decedent dying on or after January 1, 1
101	101	2019, BUT BEFORE JANUARY 1, 2026, plus any deceased spousal unused exclusion 2
102	102	amount calculated in accordance with paragraph (9) of this subsection. 3
103	103
104	104	(ii) The Maryland estate tax shall be determined without regard to 4
105	105	any deduction for State death taxes allowed under § 2058 of the Internal Revenue Code. 5
106	106
107	107	(iii) Unless the federal credit allowable by § 2011 of the Internal 6
108	108	Revenue Code is in effect on the date of the decedent’s death, the federal credit used to 7
109	109	determine the Maryland estate tax may not exceed 16% of the amount by which the 8
110	110	decedent’s taxable estate, as defined in § 2051 of the Internal Revenue Code, exceeds: 9
111	111
112	112	1. $1,000,000 for a decedent dying before January 1, 2015; 10
113	113
114	114	2. $1,500,000 for a decedent dying on or after January 1, 11
115	115	2015, but before January 1, 2016; 12
116	116
117	117	3. $2,000,000 for a decedent dying on or after January 1, 13
118	118	2016, but before January 1, 2017; 14
119	119
120	120	4. $3,000,000 for a decedent dying on or after January 1, 15
121	121	2017, but before January 1, 2018; 16
122	122
123	123	5. $4,000,000 for a decedent dying on or after January 1, 17
124	124	2018, but before January 1, 2019; [and] 18
125	125
126	126	6. $5,000,000 for a decedent dying on or after January 1, 19
127	127	2019, BUT BEFORE JANUARY 1, 2026, plus any deceased spousal unused exclusion 20
128	128	amount calculated in accordance with paragraph (9) of this subsection; AND 21
129	129
130	130	7. THE APPLICABLE EXCLU SION AMOUNT 22
131	131	CORRESPONDING TO THE APPLICABLE UNIFIED C REDIT UNDER PARAGRAP H (1) OR 23
132	132	(2) OF THIS SUBSECTION F OR A DECEDENT DYING ON OR AFTER JANUARY 1, 2026. 24
133	133
134	134	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25
135	135	1, 2025. 26
136	136