Maryland Proposes Tax Conformity on Some Business Deductions

Maryland Gov. Wes Moore (D) proposed a budget roadmap that would conform with some federal tax provisions passed last year that give companies enhanced deductions.

The budget proposal unveiled Wednesday would allow companies to immediately deduct eligible research expenses starting in tax year 2026. The budget also would allow small manufacturers to access an expanded state tax benefit for capital investments such as office equipment, vehicles, and machinery.

And the budget would conform Maryland tax law with the federal government’s rules for deducting business interest, “delivering a simpler and pro-business tax policy,” the governor’s proposal stated.

At the ...