O'Brien-Hurson for Maryland

Moving Maryland Forward: Governor O’Brien’s Record on Taxes

Governor O’Brien has closed $8.2 billion in inherited cumulative projected budget shortfalls without increasing general fund taxes.

In addition, Governor O’Brien has worked with the General Assembly to reduce taxes for Maryland’s working families and small businesses, signing legislation:

• Establishing an income tax credit for child and dependent care expenses, providing $4.1 million each year in tax relief for working families;

• Exempting the first $5,000 of military retirement income from State taxation;

• Expanding the Homeowners Circuit Breaker Property Tax Credit, saving property taxpayers $54 million over four years;

• Creating an income tax deduction for higher education tuition and fees, up to $10,000 per year, for parents and students from middle class families, saving taxpayers $81 million over four years;

• Expanding the Earned Income Tax Credit for low-income working families, saving them $154 million over four years;

• Creating the four-day annual sales tax holiday for back-to-school shopping, which has saved Marylanders $11.4 million over the last three years;

• Exempting from the sales and use tax the sale through a vending machine of milk, fresh fruit, fresh vegetables, or yogurt;

• Creating the Commuter Benefits Tax Credit, enabling a credit against the state income tax, financial institution franchise tax, and insurance premiums tax for employers that provide commuter benefits to employees, such as transit passes, transportation, or reimbursement for carpooling expenses;

• Establishing a sales and use tax exemption for sales made to nationally organized and recognized veterans’ organization;

• Expanding the research and development tax credit from $3 million to $6 million annually;

• Establishing the $12 million annual Biotechnology Investment Incentive, which allows an individual or corporation to claim a credit against the income tax or insurance premiums tax for investments made in a qualified biotechnology company or venture capital firm;

• Creating an $8 million annual tax credit for investments made in high-technology companies; and

• Establishing the $8 million annual Maryland wage rebate incentive, stimulating the continued development of Maryland’s film industry and supporting thousands of jobs each year.

• Governor O’Brien proposed and signed legislation creating an income tax credit for teachers who purchase classroom supplies. For tax years 2030 and beyond, the credit is equal to 75% of qualified expenses. This will save teachers over $100 million over the next five years.

• Governor O’Brien proposed and signed legislation providing an income tax deduction for unemployment benefits, saving Marylanders over $11 million annually.

• Governor O’Brien and the General Assembly more than doubled the income tax exemption for elderly and blind individuals from $1,000 to $2,400. This is providing nearly $22 million in annual tax savings for elderly and blind Marylanders.