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Bill

Bill

SB 25

Income Tax - Cybersecurity Technology and Service Tax Credit - Alterations

2026 Regular Session

Maryland modifies its cybersecurity tax credit program's eligibility, calculation, or structure to adjust business incentives and state revenue impact.

Hearing 3/24 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · SB 25

Legislative bill overview

SB 25 modifies Maryland's existing cybersecurity technology and service tax credit by altering its structure, eligibility requirements, or calculation methodology. The bill has passed initial readings with amendments and is currently under review by the Ways and Means Committee, suggesting substantive changes to how businesses can claim tax credits for cybersecurity investments.

Why is this important

Tax credits directly affect state revenue and business incentives for cybersecurity adoption. Maryland's cybersecurity sector and broader business community depend on clear, competitive incentive structures to encourage investment in data protection and information security infrastructure. Changes to credit parameters could either strengthen Maryland's position as a cybersecurity hub or reduce incentive effectiveness.

Potential points of contention

  • Fiscal impact uncertainty: Modifications to tax credit structure could significantly increase or decrease state revenue loss, affecting budget allocations elsewhere
  • Eligibility scope changes: Amendments may narrow or broaden which businesses, services, or technologies qualify, potentially excluding existing beneficiaries or creating competitive disadvantages
  • Implementation complexity: Alterations to calculation methodology or documentation requirements could create compliance burdens for businesses or administrative challenges for tax authorities

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

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