Prince George's County - Income Tax - Credit for Employers Providing Parental Engagement Leave PG 419-26
HB 370 creates a new State income tax credit for employers in Prince George’s County that provide “parental engagement leave” to eligible employees. The leave is intended for parents or legal guardians of school students to attend school-related meetings or events, and it must be offered under a written employer policy, paid at the employee’s regular wage rate, and provided as supplemental leave rather than replacing other benefits. The bill limits the leave to between 10 and 20 hours per qualified employee and bars employers from allowing the leave to be transferred between employees or exhausted in fewer than three uses.
The credit is calculated based on the employee’s hourly wage multiplied by the number of parental engagement leave hours used during the taxable year, with an aggregate cap of $800 per qualified employee per employer. Employers may claim the credit only if the employee has worked at least 30 days during the taxable year, and the credit is refundable if it exceeds the employer’s State income tax liability. The bill also requires documentation: the State Department of Education, in consultation with the Comptroller, must create a certification form, and employees must obtain signatures from school officials to verify attendance at the school-related event.
In terms of state law, the bill would add a new section to the Tax-General Article governing a targeted income tax credit for a county-specific workforce benefit. It would affect employers in Prince George’s County, qualified employees who are parents or legal guardians of schoolchildren, and school officials who must certify attendance. The measure would apply to taxable years beginning after December 31, 2025, and take effect July 1, 2026.
The available legislative history shows no recorded committee discussion or votes, and the bill was ultimately withdrawn by the sponsor in the House. Because of that, there is no documented floor or committee sentiment to gauge beyond the bill’s introduction. The structure of the proposal suggests a policy goal of encouraging parental involvement in schools through a tax incentive, but the lack of recorded debate means there is no clear evidence of support or opposition in the available materials.
Notable points of potential contention include the administrative burden of certification, the requirement for school principals and county board members or private-school administrators to sign forms, and the county-specific scope of the credit. The bill also raises questions about employer participation, since the credit is optional and tied to a voluntary leave policy, and about fiscal cost due to the refundable nature of the credit. No specific objections are recorded in the provided materials, but these are the main features likely to draw scrutiny.
HB 370 would add a new refundable income tax credit in the Tax-General Article for employers in Prince George’s County that provide qualifying parental engagement leave. It would create new definitions, eligibility rules, documentation requirements, and a credit calculation formula, while also directing the State Department of Education and Comptroller to develop a certification form. The bill would primarily affect county employers, employees who are parents or legal guardians of school students, and school officials responsible for verifying attendance at school-related events.
The available record shows no committee transcripts, no recorded votes, and no formal debate, so there is no documented legislative sentiment beyond the bill’s introduction. The bill was later withdrawn by the sponsor in the House, which means it did not advance through the process. Based on the text alone, the proposal appears aimed at supporting family-school engagement through a tax incentive, but the legislative history provided does not show whether that goal was broadly supported or opposed.
The main likely points of contention are the bill’s administrative requirements and its narrow geographic scope. Employers would need a written leave policy and certification paperwork, while school officials would be required to sign forms verifying attendance, which could be viewed as burdensome. The refundable tax credit could also raise fiscal concerns because it may reduce State revenue. In addition, the bill applies only to Prince George’s County, which may prompt questions about equity and whether similar benefits should be available statewide.