EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0278*
HOUSE BILL 278
Q3, M4 5lr1317
(PRE–FILED)
By: Delegates Bouchat and Fair
Requested: October 23, 2024
Introduced and read first time: January 8, 2025
Assigned to: Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Income Tax – Subtraction Modification – Enhanced Agricultural Management 2
Equipment 3
FOR the purpose of altering a subtraction modification under the Maryland income tax for 4
enhanced agricultural management equipment to include equipment that the 5
Secretary of Agriculture determines by regulation to qualify as enhanced 6
agricultural management equipment; and generally relating to a subtraction 7
modification under the Maryland income tax for enhanced agricultural management 8
equipment. 9
BY repealing and reenacting, without amendments, 10
Article – Tax – General 11
Section 10–208(a) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Tax – General 16
Section 10–208(d) 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2024 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Tax – General 22
10–208. 23
2 HOUSE BILL 278
(a) In addition to the modification under § 10–207 of this subtitle, the amounts 1
under this section are subtracted from the federal adjusted gross income of a resident to 2
determine Maryland adjusted gross income. 3
(d) (1) In this subsection: 4
(i) “enhanced agricultural management equipment” means: 5
1. a planter or drill that: 6
A. is commonly known as a “no–till” planter or drill; and 7
B. is designed to minimize the disturbance of the soil in 8
planting crops; 9
2. liquid manure soil injection equipment that is designed to 10
inject manure into the soil to reduce nutrient runoff; 11
3. a deep no–till ripper that does not invert the soil profile 12
and is used to address compaction in high residue cropping systems; 13
4. poultry or livestock manure spreading equipment used by 14
a farm owner or tenant on farmland in accordance with a nutrient management plan 15
prepared by an individual licensed by the Secretary of Agriculture in accordance with Title 16
8, Subtitle 8 of the Agriculture Article if the manure spreading equipment is used: 17
A. to spread poultry manure and bedding from normal 18
poultry production with a capability of being calibrated to 1 ton per acre; or 19
B. to apply solid or liquid livestock waste; 20
5. vertical tillage equipment used to incorporate livestock 21
manure or poultry litter into the soil; 22
6. a global positioning system device used for management of 23
agricultural nutrient applications; [and] 24
7. an integrated optical sensing and nutrient application 25
system that measures crop status and applies the crop’s nitrogen requirements at variable 26
rates based on predicted in–season yield potential for the crop and the predicted 27
responsiveness of the crop to additional nitrogen; and 28
8. OTHER EQUIPMENT THAT THE SECRETARY OF 29
AGRICULTURE DETERMINES BY REGULA TION TO QUALIFY AS ENHANCED 30
AGRICULTURAL MANAGEM ENT EQUIPMENT ; AND 31
HOUSE BILL 278 3
(ii) “enhanced agricultural management equipment” includes 1
equipment that attaches to or is pulled by equipment listed in item (i) of this paragraph. 2
(2) Except as provided in paragraph (3) of this subsection, the subtraction 3
under subsection (a) of this section includes 100% of the expenses that a taxpayer incurs to 4
buy and install enhanced agricultural management equipment if: 5
(i) the equipment has a useful life of at least 4 years; 6
(ii) the taxpayer: 7
1. bought the equipment: 8
A. after December 31, 1985, if the equipment is a planter or 9
drill; 10
B. after December 31, 1989, if the equipment is liquid 11
manure soil injection equipment; 12
C. after December 31, 1997, if the equipment is poultry or 13
livestock manure spreading equipment; 14
D. after December 31, 2001, if the equipment is a deep no–till 15
ripper that does not invert the soil profile; or 16
E. after December 31, 2012, if the equipment is a global 17
positioning system device used for management of agricultural nutrient applications or an 18
integrated optical sensing and nutrient application system; 19
2. owns the equipment for at least 3 years after the taxable 20
year in which the subtraction is made; and 21
3. uses the equipment in agricultural production; and 22
(iii) for liquid manure soil injection equipment, the equipment is: 23
1. used on land upon which farm products, as defined under 24
§ 10–601 of the Agriculture Article, are raised; and 25
2. not used to inject sludge into the soil. 26
(3) The subtraction under subsection (a) of this section includes 50% of the 27
expenses that a taxpayer incurs to buy and install enhanced agricultural management 28
equipment that is vertical tillage equipment used to incorporate livestock manure or 29
poultry litter into the soil if: 30
(i) the equipment has a useful life of at least 4 years; and 31 4 HOUSE BILL 278
(ii) the taxpayer: 1
1. bought the equipment after December 31, 2012; 2
2. owns the equipment for at least 3 years after the taxable 3
year in which the subtraction is made; and 4
3. uses the equipment in agricultural production. 5
(4) To qualify for the subtraction under paragraphs (2) and (3) of this 6
subsection, a taxpayer shall file a statement from the Department of Agriculture certifying 7
compliance with the requirements of this section. 8
(5) If the subtraction allowed under paragraphs (2) and (3) of this 9
subsection exceeds the Maryland taxable income that is computed without the modification 10
allowed under this subsection and the subtraction is not used for the taxable year, the 11
excess may be carried over to succeeding taxable years, not to exceed 5, until the full 12
amount of the subtraction is used. 13
(6) THE SECRETARY OF AGRICULTURE MAY ADOPT REGULATIONS TO 14
ESTABLISH ADDITIONAL TYPES OF EQUIPMENT THAT QUALI FY AS ENHANCED 15
AGRICULTURAL MANAGEM ENT EQUIPMENT UNDER PARAGRAPH (1)(I)8 OF THIS 16
SUBSECTION. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take ef fect July 18
1, 2025, and shall be applicable to all taxable years beginning after December 31, 2024. 19