Public Schools - Veterans' Day - Excused Student Absence
Summary
House Bill 1390 creates a new Maryland income tax subtraction modification for certain personal casualty losses arising from theft or fraud schemes. The bill defines a qualifying loss as property loss not connected to a trade or business or profit-seeking activity, and it covers both the amount of a loss that would have been deductible under federal law before January 1, 2018, and related expenses or penalties incurred during the taxable year. The subtraction is available only if the taxpayer attaches a police report showing that the theft or fraud scheme occurred.
The bill also coordinates the new state tax benefit with federal tax treatment by reducing the Maryland subtraction by any deduction already allowed under Internal Revenue Code § 165 for the same theft or fraud scheme in that taxable year. It applies to taxable years beginning after December 31, 2024, and takes effect July 1, 2025. In practical terms, it would amend Maryland’s Tax-General Article to provide relief to residents who suffer qualifying theft- or fraud-related losses and who may no longer be able to claim the same relief under current federal rules.
The bill’s impact is primarily on Maryland individual income tax law, specifically the subtraction modifications used to calculate Maryland adjusted gross income. It would create a new statutory tax benefit for affected taxpayers and require documentation in the form of a police report, while limiting the benefit to losses and related costs tied to theft or fraud schemes. The measure does not appear to affect business losses or general casualty losses unrelated to theft or fraud.
There is little direct evidence of debate in the provided materials because no committee transcript or vote record is included. Based on the bill text, the policy appears aimed at providing targeted tax relief for victims of scams and theft, suggesting a generally sympathetic purpose. Any likely points of contention would center on verification, administrative burden, and whether the state should extend a tax benefit for losses that federal law no longer fully recognizes, but those concerns are not documented in the supplied discussion materials.
Impact
HB1390 would amend Maryland Tax-General § 10-208 by adding a new subtraction modification for personal casualty losses caused by theft or fraud schemes. This would lower Maryland adjusted gross income for eligible resident taxpayers, subject to documentation and offset rules, and would apply beginning with tax year 2025. The bill primarily affects individual taxpayers who are victims of theft or fraud and does not extend to business-related losses.
Sentiment
The available materials show no recorded committee testimony or vote history, so there is no documented partisan or stakeholder sentiment to summarize. The bill’s purpose is narrowly tailored relief for victims of theft and fraud, which suggests a generally favorable policy framing, but the provided record does not show explicit support or opposition.
Contention
No specific points of contention are documented in the supplied transcripts or votes. Potential issues implied by the text include the need for a police report to substantiate claims, the administrative burden of verifying fraud-related losses, and the interaction with federal tax law under IRC § 165. Those concerns would likely be most relevant to tax administrators and lawmakers focused on fraud prevention and revenue impact.