Maryland HB1297 alters the Student Loan Debt Relief Tax Credit to prioritize state employees and set limits on credit amounts.

Maryland HB1297 modifies the Student Loan Debt Relief Tax Credit to prioritize state employees who graduated from institutions where at least 40% of attendees are eligible for federal Pell Grants. The Maryland Higher Education Commission will reserve $9,000,000 for these employees and allocate the remaining credits to other state employees. The bill sets a cap of $5,000 per individual for tax year 2025 and $18,000,000 annually thereafter. It requires the Commission to report annually on the number of applicants and credits awarded, and mandates recapture of unused credits.

Maryland HB1297 alters the Student Loan Debt Relief Tax Credit to prioritize state employees and set limits on credit amounts.

Maryland HB1297 modifies the Student Loan Debt Relief Tax Credit to prioritize state employees who graduated from institutions where at least 40% of attendees are eligible for federal Pell Grants. The Maryland Higher Education Commission will reserve $9,000,000 for these employees and allocate the remaining credits to other state employees. The bill sets a cap of $5,000 per individual for tax year 2025 and $18,000,000 annually thereafter. It requires the Commission to report annually on the number of applicants and credits awarded, and mandates recapture of unused credits.