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2026 End of Session Economic Report

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The 2026 Legislative Session was the last of Governor Moore’s first term. It included a host of bills seeking to address energy supply and demand concerns and to introduce or amend economic development incentives to strengthen Maryland’s economy. Notably, the Administration’s Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act of 2026 passed, as did a number of other bills relating to economic development.

Commerce Budget and Legislative Priorities

• $8 million for the Western Maryland Economic

The FY 2027 Commerce Operating Budget, resulting from legislative actions, is $260.6 million.

• $8 million for the Strategic Closing Fund (formerly

Funding levels for selected Economic & Tourism Development Programs: • $17.5 million for the Advantage Maryland (Maryland

Economic Development Assistance Authority and Fund or MEDAAF) • $15 million for the More Jobs for Marylanders Tax

Credit Reserve Fund • $13.6 million for the Maryland Small Business

Development Financing Authority (MSBDFA) • $10 million for the Maryland Biotechnology

Investment Tax Credit Reserve Fund • $33.7 million for the Maryland State Arts Council

>$2.165 million of this was added by the legislature for grants to specific entities • $20.4 million for the Maryland Tourism

Development Board and the Office of Tourism Development > $1.55 million of this was added by the legislature for grants to specific entities • $20 million for the Small, Minority, and Women-

Owned Business Account • $7 million for the Build Our Future Grant Pilot

Program and Fund • $25.95 million for the Cannabis Business Assistance

Fund • $2 million for the Industry 4.0 Technology

Grant Program • $10 million for the Child Care Capital Support

Revolving Loan Fund

Future Investment Board and Senator George C. Edwards Fund known as the Sunny Day Fund)

What Passed? Administration and Departmental Priorities SB 388 / HB 898 - Economic Development Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act This Administration bill alters, enhances, and transfers various economic development programs and tax credits and exempts from sales and use tax certain related-party sales of data and information technology services and digital goods. The bill transfers $5 million in video lottery terminal funding to the MSBDFA program; transfers the Build Our Future program to MEDCO; maintains current funding for the Film Production Tax Credit; continues the Employer Security Clearance Costs Tax Credit; renames Sunny Day to become the Strategic Closing Fund and transfers it to Commerce; adds a number of reporting requirements for various programs; and implements other changes to MEDAAF, MSBDFA, SMWOBA, the Job Creation Tax Credit, Regional Institution Strategic Enterprise Zones, and the Research and Development Tax Credit. Effective date: June 1, 2026; sales and use tax provisions and most provisions modifying programs and tax credits take effect July 1, 2026. This overview is for informational purposes only, and is subject to change based on bill signings and DBM action. For definitive information on legislation, please consult the Maryland General Assembly website at https://mgaleg.maryland.gov/mgawebsite.


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2026 End of Session Economic Report by State of Maryland - Issuu