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Bill

HB 656

Income, Sales and Use, and Property Taxes - Revocation of Exempt Status for Nonprofit Organizations for Supporting Terrorist Organizations

2026 Regular Session Introduced by Kevin Anderson and 9 co-sponsors

Maryland bill revokes tax-exempt status for nonprofits providing material support to designated terrorist organizations, aiming to restrict charitable funding channels to extremist entities.

Hearing 2/19 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 656

Legislative bill overview

HB 656 would revoke tax-exempt status from nonprofit organizations that provide material support to entities designated as terrorist organizations. The bill appears designed to prevent tax benefits from indirectly funding groups linked to terrorism or violent extremism through charitable channels.

Why is this important

Tax-exempt status provides significant financial advantages (exemption from federal/state taxes, donor deductions). If nonprofits are funneling resources to designated terrorist groups, revoking this status could disrupt funding pipelines and align charitable regulations with national security priorities. However, the policy also raises questions about oversight mechanisms and due process.

Potential points of contention

  • Definition and designation scope: Who determines what constitutes "supporting" a terrorist organization and which entities qualify? Overly broad language could catch organizations providing humanitarian aid to civilians in regions controlled by designated groups.
  • Due process concerns: Whether nonprofits receive adequate notice, hearing opportunity, and appeal mechanisms before losing tax-exempt status, and which government agency makes determinations.
  • Existing legal framework: The effectiveness of this approach when federal law already prohibits material support to terrorism; the bill's relationship to federal designations versus state-level determinations.

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

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