Maryland HB880 decouples state income tax from federal amendments affecting depreciation and business interest expenses.

Maryland HB880 modifies state income tax rules to decouple from federal amendments related to depreciation of certain property and business interest expenses. It adjusts the taxable income of corporations and individuals to exclude changes in federal law affecting the Internal Revenue Code. The bill specifies adjustments for depreciation deductions and business interest expenses, ensuring Maryland tax law remains consistent with pre-amendment federal rules. The changes apply to taxable years beginning after December 31, 2025, and take effect July 1, 2026.

Maryland HB880 decouples state income tax from federal amendments affecting depreciation and business interest expenses.

Maryland HB880 modifies state income tax rules to decouple from federal amendments related to depreciation of certain property and business interest expenses. It adjusts the taxable income of corporations and individuals to exclude changes in federal law affecting the Internal Revenue Code. The bill specifies adjustments for depreciation deductions and business interest expenses, ensuring Maryland tax law remains consistent with pre-amendment federal rules. The changes apply to taxable years beginning after December 31, 2025, and take effect July 1, 2026.