Maryland HB 719: Income Tax - Credit for Parent and Guardian Volunteers in Elementary and Secondary Schools

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0719*

HOUSE BILL 719
Q3 4lr1024
CF SB 198
By: Delegates J. Long, Alston, Bagnall, Buckel, Miller, Schmidt, Simmons,
Tomlinson, and Wilkins
Introduced and read first time: January 26, 2024
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Income Tax – Credit for Parent and Guardian Volunteers in Elementary and 2
Secondary Schools 3

FOR the purpose of allowing certain eligible taxpayers who volunteer in a certain school a 4
credit against the State income tax; requiring the State Department of Education, in 5
consultation with the Comptroller, to develop and make available a certain 6
application and tax credit certificate; requiring a certain county board member or 7
school administrator to issue tax credit certificates in a certain manner; making the 8
credit refundable under certain circumstances; and generally relating to a credit 9
against the State income tax for volunteering in certain schools. 10

BY repealing and reenacting, without amendments, 11
Article – Education 12
Section 1–101(a) and (d) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2023 Supplement) 15

BY adding to 16
Article – Tax – General 17
Section 10–758 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2023 Supplement) 20

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22

Article – Education 23

1–101. 24

2 HOUSE BILL 719

(a) In this article, unless the context requires otherwise, the following words have 1
the meanings indicated. 2

(d) “County board” means the board of education of a county and includes the 3
Baltimore City Board of School Commissioners. 4

Article – Tax – General 5

10–758. 6

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8

(2) “COUNTY BOARD” HAS THE MEANING STATED IN § 1–101 OF THE 9
EDUCATION ARTICLE. 10

(3) “ELIGIBLE TAXPAYER” MEANS AN INDIVIDUAL WHO: 11

(I) 1. IS THE PARENT OF A SCHOOL STUDENT; OR 12

2. HAS LEGAL CUSTODY OF A SCHOOL STUDENT AS A 13
LEGAL GUARDIAN; AND 14

(II) VOLUNTEERS AT THE SCHOOL IN WHICH THE STUDENT IS 15
ENROLLED. 16

(4) “SCHOOL” MEANS A PUBLIC OR NONPUBLIC ELEMENTARY OR 17
SECONDARY SCHOOL IN THE STATE, INCLUDING A CHARTER SCHOOL. 18

(B) SUBJECT TO THE LIMITATIONS OF THIS SECTION, EACH ELIGIBLE 19
TAXPAYER, REGARDLESS OF INDIVIDUAL OR JOINT FILING STATUS, MAY CLAIM A 20
CREDIT AGAINST THE STATE INCOME TAX IN THE AMOUNT STATED ON A TAX CREDIT 21
CERTIFICATE ISSUED TO THE ELIGIBLE TAXPAYER DURING THE TAXABLE YEAR IN 22
ACCORDANCE WITH SUBSECTION (C) OF THIS SECTION. 23

(C) (1) THE STATE DEPARTMENT OF EDUCATION SHALL, IN 24
CONSULTATION WITH THE COMPTROLLER, DEVELOP AND MAKE AVAILABLE AN 25
APPLICATION AND A TAX CREDIT CERTIFICATE TO BE USED IN ACCORDANCE WITH 26
PARAGRAPHS (2) AND (3) OF THIS SUBSECTION. 27

(2) AN ELIGIBLE TAXPAYER SHALL SUBMIT AN APPLICATION FOR A 28
CREDIT UNDER THIS SECTION: 29

(I) IF THE STUDENT IS ENROLLED IN A PUBLIC SCHOOL, TO THE 30

HOUSE BILL 719 3

COUNTY BOARD MEMBER WHO REPRESENTS THE SCHOOL; OR 1

(II) IF THE STUDENT IS ENROLLED IN A NONPUBLIC SCHOOL, TO 2
AN ADMINISTRATOR OF THE SCHOOL. 3

(3) (I) ON APPLICATION BY AN ELIGIBLE TAXPAYER UNDER 4
PARAGRAPH (2) OF THIS SUBSECTION, A COUNTY BOARD MEMBER OR SCHOOL 5
ADMINISTRATOR SHALL ISSUE A TAX CREDIT CERTIFICATE IN AN AMOUNT EQUAL TO 6
$20 FOR EACH HOUR THAT THE ELIGIBLE TAXPAYER VOLUNTEERS AT THE SCHOOL 7
IN WHICH THE STUDENT IS ENROLLED. 8

(II) FOR ANY TAXABLE YEAR: 9

1. AN ELIGIBLE TAXPAYER MAY APPLY FOR AND 10
RECEIVE MORE THAN ONE TAX CREDIT CERTIFICATE, REGARDLESS OF WHETHER 11
ANOTHER ELIGIBLE TAXPAYER HAS RECEIVED A TAX CREDIT CERTIFICATE FOR THE 12
SAME STUDENT; AND 13

2. THE AGGREGATE AMOUNT OF THE TAX CREDIT THAT 14
EACH ELIGIBLE TAXPAYER MAY CLAIM MAY NOT EXCEED $500. 15

(4) THE COUNTY BOARD MEMBER OR SCHOOL ADMINISTRATOR 16
ISSUING A TAX CREDIT CERTIFICATE UNDER THIS SECTION SHALL KEEP A RECORD 17
OF THE NUMBER OF VOLUNTEER HOURS ACCRUED BY EACH ELIGIBLE TAXPAYER 18
THAT RECEIVES A TAX CREDIT CERTIFICATE. 19

(D) IF THE CREDIT ALLOWED UNDER THIS SECTION IN ANY TAXABLE YEAR 20
EXCEEDS THE STATE INCOME TAX FOR THAT TAXABLE YEAR, THE ELIGIBLE 21
TAXPAYER MAY CLAIM A REFUND IN THE AMOUNT OF THE EXCESS. 22

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 24