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HB 690

Corporate Income Tax - Rate Reduction (Economic Competitiveness Act of 2026)

2026 Regular Session Introduced by Chris Adams and 26 co-sponsors

HB 690 reduces Maryland's corporate income tax rate to improve business competitiveness, with potential tradeoffs between attracting investment and reducing state tax revenue.

Hearing 2/19 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 690

Legislative bill overview

HB 690 proposes to reduce Maryland's corporate income tax rate as part of an "Economic Competitiveness Act." The bill aims to make the state more attractive to businesses by lowering the tax burden on corporations operating in Maryland. Specific rate reduction details are not provided in the available information.

Why is this important

Corporate tax rates directly affect business investment decisions and state revenue. Maryland's competitiveness with neighboring states (Virginia, Pennsylvania, Delaware) influences whether companies relocate, expand, or maintain operations within state borders. The fiscal impact on education, infrastructure, and social services depends on how much revenue is lost versus economic growth gains.

Potential points of contention

  • Revenue impact uncertainty: Lower corporate tax rates reduce state income without guaranteed offsetting economic growth; the actual net fiscal effect depends on behavioral responses by businesses
  • Distributional concerns: Tax cuts may primarily benefit large corporations and shareholders while reducing funding for public services that benefit broader populations
  • Interstate tax competition: While framed as competitiveness, this could trigger a "race to the bottom" where states continuously cut rates, ultimately benefiting businesses at the expense of public investment

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

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