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HB1014 is a broad tax package titled the Fair Share for Maryland Act of 2025. It makes multiple changes to Maryland estate and income tax law, including lowering the Maryland estate tax exclusion for decedents dying on or after January 1, 2026, from $5 million to $2 million, while preserving the deceased spousal unused exclusion rules. It also delays the effect of certain federal tax-code changes for Maryland income tax purposes by one additional year in some cases, and modifies the definition of a qualified child for a dependent child credit.
The bill creates several new or expanded revenue provisions. It imposes a 2.5% business transportation fee on corporate and pass-through entity taxable income above $10 million for taxable years beginning after December 31, 2026 and before January 1, 2033, with revenue dedicated to the Transportation Trust Fund. It also adds a 1% tax on net investment income for individuals with federal adjusted gross income over $350,000, increases the top individual income tax rates for higher-income taxpayers, and imposes an 8.25% tax on distributive shares of pass-through entity income above $1 million. In addition, it limits net operating losses, changes sales-factor apportionment rules for corporations, and requires combined reporting for unitary corporate groups beginning in 2029.
The bill also expands or revises several tax credits aimed at lower- and moderate-income households. It broadens the Maryland earned income tax credit for workers without qualifying children by changing the phase-out structure and indexing thresholds for inflation beginning in 2029. It revises the child tax credit by increasing the per-child credit amounts, removing the prior income cap, and phasing the credit down for higher-income taxpayers. These provisions are paired with inflation adjustments for future years, suggesting an effort to make the credits more durable over time.
Overall sentiment from the available context is limited because there are no committee transcripts or recorded votes, but the bill’s structure indicates a strong policy preference for raising revenue from high-income individuals, large corporations, and pass-through entities while expanding targeted family and worker credits. The bill appears to be framed as a progressive tax and revenue measure, with transportation funding as one of its stated uses.
The main points of contention are likely to be the estate tax reduction threshold, the higher top individual rates, the new tax on investment income, the pass-through entity tax, and the combined reporting requirement for corporate groups. Businesses and high-income taxpayers would likely oppose the new or expanded taxes and compliance requirements, while supporters would likely emphasize fairness, revenue generation, and funding for transportation and tax credits for families and low-wage workers.
HB1014 would substantially amend Maryland’s Tax-General Article by changing estate tax thresholds, individual income tax brackets, pass-through entity taxation, corporate apportionment, net operating loss limits, and filing rules for combined corporate returns. It would also create new sections authorizing a business transportation fee and a tax on pass-through distributive income above $1 million, while revising the earned income tax credit and child tax credit. The bill affects estates, individuals, corporations, pass-through entities, and taxpayers claiming family or low-income credits, and it directs new transportation-fee revenue to the Transportation Trust Fund.
No committee testimony or vote record is provided, so there is no documented floor or committee sentiment in the supplied materials. Based on the bill text, the measure appears generally supportive of progressive tax policy and targeted credits, but it also imposes significant new taxes and reporting obligations on higher-income taxpayers and businesses. That combination suggests likely support from lawmakers favoring revenue increases and affordability measures, and likely opposition from business and taxpayer groups concerned about tax burden and administrative complexity.
The most contentious provisions are likely the lower estate tax exclusion, the higher top marginal income tax rates, the 1% tax on net investment income, the 8.25% tax on pass-through income above $1 million, and the new business transportation fee on large corporations and pass-through entities. Corporate taxpayers may also object to mandatory combined reporting, expanded sales-factor sourcing, and limits on net operating losses, while supporters are likely to argue these changes improve tax fairness and raise dedicated revenue. The child tax credit and earned income tax credit expansions are likely less controversial, though their phase-out rules and eligibility changes could still draw technical scrutiny.