The Maryland Comptroller’s Office today released the 60-Day Report, an analysis of P.L 119-21 (One Big Beautiful Bill Act [OBBB]) and its expected impact on revenue administration and collection in Maryland. The Bureau of Revenue Estimates projects an estimated $189.3 million reduction in general fund revenue between fiscal year 2026 ($117.9 million) and fiscal year 2027 ($71.4 million). The federal OBBB extends significant federal tax reductions enacted by the Tax Cuts and Jobs Act of 2017 (TCJA), modifies existing benefits, and establishes several new tax benefits. In response to the changes in the federal tax code, the state will automatically decouple from several provisions in the law that are expected to have a $5 million or greater impact on state revenues in fiscal year (FY) 2026. These provisions will not apply to Maryland taxes during tax year (TY) 2025. These business income provisions include research and experimental expenses; the new qualified production property depreciation under Section 168(n); and modifications to the business interest deduction limitation. Decoupling from any provisions in the law beyond TY 2025 will require legislative action from the Maryland General Assembly. During the upcoming 2026 legislative session, the General Assembly will consider whether to permanently decouple Maryland tax […]
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