Maryland HB801 modifies state income tax rules for businesses, excluding certain stock gains and expenses from taxable income.

Maryland HB801 modifies state income tax rules to exclude certain business stock gains and expenses from taxable income. Specifically, it excludes gains from the sale or exchange of qualified small business stock and certain fines, penalties, and trade or business expenses from federal adjusted gross income. The bill also adjusts the depreciation deduction for heavy-duty SUVs and modifies the federal adjusted gross income of an individual or federal taxable income of a corporation for Maryland income tax purposes. These changes apply to all taxable years beginning after December 31, 2025.

Maryland HB801 modifies state income tax rules for businesses, excluding certain stock gains and expenses from taxable income.

Maryland HB801 modifies state income tax rules to exclude certain business stock gains and expenses from taxable income. Specifically, it excludes gains from the sale or exchange of qualified small business stock and certain fines, penalties, and trade or business expenses from federal adjusted gross income. The bill also adjusts the depreciation deduction for heavy-duty SUVs and modifies the federal adjusted gross income of an individual or federal taxable income of a corporation for Maryland income tax purposes. These changes apply to all taxable years beginning after December 31, 2025.