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HB 547

Income Tax - Enhanced Agricultural Management Equipment Subtraction Modification and Parent of a Stillborn Child Credit

2026 Regular Session Introduced by Gabriel Acevero and 17 co-sponsors

HB 547 allows Maryland farmers to exclude enhanced agricultural management equipment costs from taxable income, reducing their state income tax liability in exchange for equipment investments.

Approved by the Governor - Chapter 327
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Bill Summary · HB 547

Legislative bill overview

HB 547 modifies Maryland's income tax code to create a subtraction modification for enhanced agricultural management equipment. This allows farmers and agricultural businesses to exclude certain qualified equipment expenditures from their taxable income, effectively providing a tax deduction for investments in advanced farm equipment and technology.

Why is this important

Agricultural equipment represents significant capital investment for farming operations, and tax incentives can influence whether farmers modernize their operations or adopt new management technologies. This policy decision affects state tax revenue, agricultural competitiveness, and may encourage adoption of more efficient or sustainable farming practices depending on what qualifies as "enhanced" equipment.

Potential points of contention

  • Definition and scope: The bill's effectiveness depends entirely on how "enhanced agricultural management equipment" is defined—unclear parameters could lead to disputes over what qualifies and potential revenue loss if definitions are too broad
  • Tax revenue impact: Reducing taxable income for agricultural businesses decreases state tax collection; fiscal analysis of how many operations would benefit and total revenue loss is critical
  • Equity concerns: Benefits would primarily flow to commercial farming operations with capital to invest; small farmers or those unable to afford equipment upgrades may not benefit equally

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

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