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HB 1101

Corporate Income Tax - Rate Reduction (Economic Competitiveness Act of 2025)

2025 Regular Session Introduced by Chris Adams and 33 co-sponsors

Maryland bill would cut corporate income tax rates to boost business competitiveness, risking state revenue without identified funding alternatives.

Hearing 2/20 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 1101

Legislative bill overview

HB 1101 would reduce Maryland's corporate income tax rate as part of an "Economic Competitiveness Act." The bill has just been introduced and referred to the Ways and Means Committee, with a hearing scheduled for February 20, 2025. Specific rate reduction details are not yet publicly available in standard legislative tracking systems.

Why is this important

Corporate tax rates directly affect business investment decisions and state revenue. Maryland currently has a 8.75% corporate tax rate (among the nation's higher rates), so any reduction could influence whether companies relocate to or expand within the state. However, this also represents foregone tax revenue that would need to be addressed through budget adjustments, spending cuts, or other revenue sources.

Potential points of contention

  • Revenue impact: Reducing corporate tax rates decreases state revenue without specified offsets, potentially affecting education, infrastructure, and social services funding
  • Effectiveness debate: Economic research is mixed on whether corporate tax cuts meaningfully increase job creation or primarily benefit shareholders and executives
  • Equity concerns: Corporate tax reductions may shift the tax burden toward individual income and sales taxes, affecting working and middle-class residents disproportionately

Compiled from official sources — confirm details with the bill’s official record.

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