By Saleem A. Shareef, Esq., Checkpoint News
On May 26, 2026, Maryland Governor Wes Moore signed legislation that amends the job creation income tax credit; disabled veteran or surviving spouse local property tax credits; and disabled veteran, disabled active duty service member, or surviving spouse property tax exemption, by including U.S. Space Force members. The legislation creates the term “active military, naval, air, or space service” to conform to the definition of “veteran” as updated in 38 U.S.C. Section 101. (L. 2026, S194 (c. 689), effective 07/01/2026, and applicable as stated.)
Job Creation Income Tax Credit
For the Maryland job creation income tax credit pursuant to Md. Code Ann. Tax-Gen. § 10-704.4 and Md. Code Ann. Econ. Dev. § 6-304, “Qualified veteran employee” means an individual who is a veteran and is a qualified veteran as defined under IRC § 51(d)(3)(A) for purposes of the federal Work Opportunity Tax Credit. Previously, the definition included only active military, naval, or air service referring to 38 U.S.C. Section 101 prior to the inclusion of the space service. The amendment is applicable to all taxable years beginning after December 31, 2025.
Disabled Veteran or Surviving Spouse Local Property Tax Credits
For the local property tax credit authorized by Md. Code Ann. Tax-Prop. § 9-265, “disabled veteran” means an individual who is a veteran and has been declared by the U.S. Department of Veterans Affairs to have a: (1) permanent service-connected disability of at least 50% that results from blindness or any other disabling cause that is reasonably certain to continue for the life of the veteran and was not caused or incurred by misconduct of the veteran; or (2) nonpermanent service-connected disability of 100% that results from blindness or any other disabling cause that was not caused or incurred by misconduct of the veteran.
For the local property tax credit authorized by Md. Code Ann. Tax-Prop. § 9-323, “disabled veteran” means an individual who is a veteran and has been declared by the U.S. Department of Veterans Affairs to have a permanent service-connected disability that results from blindness or other disabling cause that is reasonably certain to continue for the life of the veteran and was not caused or incurred by misconduct of the veteran.
Previously, these definitions included only active military, naval, or air service referring to 38 U.S.C. Section 101 prior to the inclusion of the space service.
The amendments are applicable to all taxable years beginning after June 30, 2026.
Disabled Veteran, Disabled Active Duty Service Member, or Surviving Spouse Property Tax Exemption
For the disabled veteran, disabled active duty service member, or surviving spouse property tax exemption pursuant to Md. Code Ann. Tax-Prop. § 7-208, “disabled active duty service member” means an individual in active military, naval, air, or space service who has a service connected physical disability that: (1) is reasonably certain to continue for the life of the service member; and (2) was not caused or incurred by misconduct of the service member.
“Disabled veteran” means an individual who is a veteran and has been declared by the U.S. Department of Veterans Affairs to have a permanent 100% service connected disability that results from blindness or other disabling cause that: (1) is reasonably certain to continue for the life of the veteran; and (2) was not caused or incurred by misconduct of the veteran.
“Individual who died in the line of duty” means an individual who died while in the active military, naval, air, or space service as a result of an injury or disease that is deemed under 38 U.S.C. Section 105 to have been incurred in the line of duty.
Previously, these definitions included only active military, naval, or air service referring to 38 U.S.C. Section 101 prior to the inclusion of the space service.
The amendments are applicable to all taxable years beginning after June 30, 2026.
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