Income Tax - Enhanced Agricultural Management Equipment Subtraction Modification and Parent of a Stillborn Child Credit
HB0547 makes two separate changes to Maryland’s income tax law. First, it expands the existing subtraction modification for “enhanced agricultural management equipment” by adding a new catch-all category for other equipment that the Secretary of Agriculture determines by regulation to qualify. The bill also requires the Secretary, beginning December 1, 2026 and each year thereafter, to report to the Governor and General Assembly on additional equipment the Secretary recommends for inclusion. The existing subtraction continues to allow farmers to deduct all or part of the cost of qualifying conservation and nutrient-management equipment, such as no-till planters, manure injection equipment, and precision nutrient application systems.
Second, the bill creates a new refundable income tax credit for a parent of a stillborn child. A taxpayer may claim a $1,000 credit for each birth for which a certificate of birth resulting in stillbirth, or an equivalent fetal death certificate from another state, has been issued. The credit is limited by income, phases down for higher-income taxpayers, applies only in the taxable year of the stillbirth, and is refundable if it exceeds the taxpayer’s State income tax liability.
The bill amends Maryland Tax-General § 10-208 to broaden eligibility for the agricultural equipment subtraction and adds new Tax-General § 10-758 to establish the stillborn child credit. For agriculture, the change gives the Secretary of Agriculture regulatory authority to identify additional qualifying equipment, potentially expanding the number of farmers and equipment purchases eligible for the subtraction. For taxpayers affected by stillbirth, the bill creates a new refundable State income tax benefit tied to documentation under Maryland law or comparable out-of-state certificates, with income-based phaseout limits.
The available record shows the bill was enacted and approved by the Governor, but there are no committee transcripts or recorded votes provided to indicate detailed debate or opposition. The structure of the bill suggests two policy goals that are generally distinct: support for agricultural conservation practices and financial recognition for families experiencing stillbirth. Its enactment indicates overall legislative support for both provisions.
No formal committee discussion or vote breakdown is included, so specific points of contention are not documented in the record provided. Potential areas of debate would likely have been the scope of the Secretary of Agriculture’s regulatory authority to add qualifying equipment and the fiscal cost of creating a refundable credit for stillborn births. The bill’s income phaseout and documentation requirements suggest an effort to limit the credit to eligible taxpayers and address administrative concerns.