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
The FY 2027 Commerce Operating Budget, resulting from legislative actions, is $260.6 million.
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 WomenOwned 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
• $8 million for the Western Maryland Economic Future Investment Board and Senator George C. Edwards Fund
• $8 million for the Strategic Closing Fund (formerly known as the Sunny Day Fund)
What Passed?
Administration and Departmental Priorities
SB 388 / HB 898 - Economic DevelopmentDelivering 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
SB 389 / HB 894 - Land Use - Transit-Oriented Development - Alterations (Maryland Transit and Housing Opportunity Act)
This Administration bill makes changes to State law relating to transit-oriented development, including (1) allowing for automatic designation of certain transit-oriented developments as enterprise zones; (2) establishing a priority and a scoring preference under existing State grant/loan programs; (3) prohibiting local jurisdictions from imposing certain land use limitations or requirements on development near specified rail transit stations; and (4) subject to a contingency, prohibiting the collection of local development impact fees or excise taxes from certain transit-oriented development before construction is completed. Effective date: October 1, 2026.
SB 77 / HB 300 - State Contracts - Prohibited Provisions - Exemptions
This bill exempts Commerce Department contracts entered into by the Office of International Investment and Trade that relate to the development of authorized international business activities and opportunities from certain provisions that would otherwise be required in State contracts. This bill takes effect July 1, 2026.
Changes to Existing Economic Development Programs:
SB 920 / HB 798 - Economic Development - Small, Minority, and Women-Owned Business AccountsManagement Fees (Small Business Increased Access to Capital Act)
This bill authorizes the Department of Commerce to authorize an eligible SMWOBA fund manager to receive, use, and retain a management fee of between 1.5%-3% of loans. It authorizes the Department to set an annual cap on the cumulative amount of management fees an eligible fund manager may receive. This bill takes effect July 1, 2026.
SB 440
/ HB 472 - Income Tax - Theatrical Production Tax Credit - Sunset Extension
This bill extends the termination date of the Theatrical Production Tax Credit within the Department of Commerce from June 30, 2027 to June 30, 2032, and sets an aggregate limit for the carry-forward of unused credits across fiscal years.
SB 248 / HB 487 - Maryland Technology Development Corporation - InvestmentsAlterations
This bill requires the Maryland Technology Development Corporation (TEDCO) to adopt regulations regarding the consideration of divestment or other remedies for investments in certain businesses that no longer meet the definition of a qualified business. The bill grants TEDCO discretion to divest or to pursue other remedies relating to companies it has invested in under certain circumstances. This bill takes effect July 1, 2026.
New Incentives and Business Assistance Programs
SB 300 / HB 461 - Economic Development - Rural Readiness Program and Rural Maryland Capacity Building Fund - Establishment
This bill establishes the Rural Readiness Program, administered by the Rural Maryland Council, to enhance the capacity of rural communities for economic development. The bill creates the Rural Maryland Capacity Building Fund to award competitive grants – up to $50,000 to eligible applicants that completed the Rural Readiness Program – to support planning and capacity building initiatives. This bill takes effect October 1, 2026.
SB 287 / HB 135 - Economic Development
- Tax Increment Financing - Noncontiguous Areas
This bill authorizes the governing body of a political subdivision to designate, by resolution, a noncontiguous “blighted area” within its jurisdiction as a development district under the Tax Increment Financing Act. “Blighted area” means an area in which a majority of buildings have declined in productivity by reason of obsolescence, depreciation, or other causes to an extent that they no longer justify fundamental repairs and adequate maintenance. This bill takes effect October 1, 2026.
SB 453
/ HB 911 - Horse Racing - Laurel ParkArabian Breed Racing Authorization
This emergency bill authorizes a licensee at Laurel Park to conduct live racing of Arabian breed horses under specified conditions. This bill takes effect from the date it is enacted.
Chapter 146 - Baltimore City - Economic Development Project in Downtown RISE DistrictPayment in Lieu of Taxes
This emergency bill authorizes Baltimore City to fully or partially exempt specified economic development projects from the city real property tax under specified conditions in which the owner of the economic development project and the Baltimore City Board of Estimates must enter into a payment in lieu of taxes agreement. The bill takes effect from the date it is enacted and terminates ten years after that.
SB 198 - Prince George’s Community CollegeAerospace and Aviation Systems Technology Programs - Feasibility Study
This bill requires Prince George’s Community College (PGCC) to conduct a feasibility study and program design assessment to establish workforce training programs for aerospace systems technology and aviation systems technology. PGCC must report on specified findings, recommendations, and plans by December 1, 2027. The bill takes effect July 1, 2026.
HB 1172 - Howard County - Economic Development Authority - Alterations Ho. Co. 14-26
This bill alters provisions of Howard County law pertaining to the Howard County Economic Development Authority Board of Directors. The bill decreases the frequency at which the board must meet and repeals the requirement that the Chairman of the Mid-Maryland Private Industry Council designate a county private sector representative from the council to serve as an ex officio nonvoting member of the board. This bill takes effect October 1, 2026.
SB 552 / HB 1452 - Economic Development - Prince George’s County Suitland Development AuthorityEstablished
This bill establishes the Suitland Development Authority (SDA) in Prince George’s County to promote the revitalization and economic development of the communities along the Suitland Road and Silver Hill Road Intersection. The bill establishes various express powers and requirements for SDA, and establishes a related special fund. The Governor must include each year in the budget bill an appropriation of $500,000 to SDA, and SDA must be self-sustaining beginning in fiscal 2036. This bill takes effect October 1, 2026.
SB 757 - Economic Development - Local Sourcing Database
This bill requires the Department of Commerce to develop and maintain a searchable online database, to be known as the Maryland Local Sourcing Portal, to connect businesses in the State with local sources for tariff-impacted goods and other supplies. This bill takes effect October 1, 2026, and terminates September 30, 2031.
HB 1247 - Prince George’s County - Tax Increment Financing - Extraordinary Development DistrictAlterations PG 425-25
This emergency bill authorizes the proceeds from bonds issued by Prince George’s County or its revenue authority to be used for the acquisition, construction, or rehabilitation of an immersive entertainment venue. This bill takes effect from the date it is enacted.
SB 869 - Economic Development - Maryland Workforce Launch Pilot Program - Establishment
This bill establishes the Maryland Workforce Launch Pilot Program in the Department of Commerce to provide customized, no-cost workforce training as a business attraction tool to recruit strategic industries and qualified business entities to the State. Commerce must: partner with no more than two community colleges to deliver training services; provide funds to cover the direct costs of developing and delivering specialized training; and establish performance metrics for qualified businesses. The bill takes effect October 1, 2026, and terminates September 30, 2029.
HB
840 / SB 767 - Property Tax - Credit for Commercial Buildings Rented to Small Businesses
This bill authorizes county and municipal governments to grant a property tax credit for a commercial building that is rented, or rented to own, to a small business located in a designated arts and entertainment district or Main Street Maryland community. Local governments may set: (1) the amount and duration of the tax credit; (2) additional eligibility criteria; (3) application procedures; and (4) any other provision necessary to carry out the tax credit. The bill takes effect June 1, 2026, and applies to taxable years beginning after June 30, 2026.
SB 905 - Maryland Technology Development Corporation - Maryland Advanced Manufacturing Grant Program - Established
This bill establishes the Maryland Advanced Manufacturing Grant Program and a related special fund, administered by TEDCO. The purpose is to support the growth of companies specializing in regenerative medicine and other advanced manufacturing. TEDCO may adopt regulations necessary to carry out the program. The bill takes effect July 1, 2026.
SB 763 / HB 1596 - Maryland Technology Development Corporation - Maryland Growth Initiative - Established
This bill establishes the Maryland Growth Initiative in TEDCO to support the growth of start-up companies, and establishes the Maryland Growth Initiative Fund. The Governor must include every year in the budget bill an appropriation of $5 million for the initiative. This bill takes effect October 1, 2026.
SB 816 / HB 1276 - West North Avenue Development Authority (WNADA) - Neighborhood Social Connection and Development ProgramEstablishment (WNADA Neighborhood Social Connection and Development Act)
This bill establishes the West North Avenue Development Authority (WNADA) Neighborhood Social Connection and Development Program to foster social connections to support neighborhood development within the West North Avenue Corridor by providing technical support and grants. The bill requires WNADA to award grants to implement the program and expands the purpose of the existing Continuing the CORE Partnership Fund to include assisting WNADA in expeditiously removing blighted property within Baltimore City. The bill takes effect October 1, 2026, and terminates September 30, 2029.
SB 193 - Washington County - Sales and Use Tax Exemption - Target Redevelopment Area
This bill provides a State sales and use tax exemption over a 10-year period for the sale of specified construction material or warehousing equipment purchased by a person solely for use in a target redevelopment area in Washington County. The bill takes effect July 1, 2026, and terminates June 30, 2036.
Authorities/Boards/Commissions
Chapter 36 - Maryland-Ireland Trade CommissionMembership and Termination - Altered and Extended
This bill extends the termination date of the Maryland-Ireland Trade Commission to September 30, 2028 and modifies the composition of the commission. The commission must continue to report its findings and recommendations to the General Assembly and the Governor.
SB 770 / HB 1473 - Economic DevelopmentMaryland’s Future Board - Establishment
This bill establishes Maryland’s Future Board within the Department of Commerce to develop a visionary plan (as defined by the bill), annually evaluate and update the plan, and annually recommend projects that ensure the economic strength of the State. The bill establishes Maryland’s Future Fund, a special fund administered by Commerce to fund the projects recommended by the board. The bill requires the Comptroller to study economic growth trends in the State and report to the General Assembly the results. The bill takes effect July 1, 2026, and terminates June 30, 2031.
Chapter 104 - State Government – Council for Open Data – Membership and Responsibilities
This bill modifies the name, membership, and responsibilities of the Council on Open Data. This includes advising on data initiatives and priorities, and identifying and exploring ways in which partnerships may be developed and strengthened to connect Maryland data with communities and social service organizations. The bill takes effect July 1, 2026.
Other Bills of Interest
SB 376 / HB 470 - Digital Asset and Blockchain Technology Task Force - Establishment
This bill establishes the Digital Asset and Blockchain Technology Task Force, staffed by the Office of Financial Regulation in the Department of Labor. The task force must conduct an analysis of – and make recommendations regarding – the expansion of blockchain technology and cryptocurrency in the State. The bill takes effect July 1, 2026, and terminates June 30, 2028.
Chapter 111 - Land Use - Comprehensive and General Plans - Alteration of Elements
This bill modifies and reorganizes the elements that a local jurisdiction must include in a comprehensive (or general) plan so that the elements (1) are consistent with planning principles established under Chapters 63 and 64 of 2025 and (2) apply consistently across all local jurisdictions. The bill seeks to provide a positive economic impact as the implementation of comprehensive plans with these aligned elements will help boost local economic health, lower the cost-of-living burden, and promote the development of multiple transportation modalities. The bill takes effect October 1, 2026..
What Failed?
SB 25 / HB
290 - Income Tax - Cybersecurity Technology and Service Tax Credit - Alterations
If passed, this bill would have altered the Buy Maryland Cybersecurity Tax Credit, including by making the credit fully refundable; increasing the annual aggregate limit on the amount of credits that may be claimed for cybersecurity technology or services purchased from a single qualified seller from $200,000 to $1 million; expanding the definitions of “qualified buyer” and “qualified seller”; repealing a requirement that the Secretary of Commerce award 25% of the annual authorized amount of credits to qualified buyers that purchase cybersecurity services; and sunsetting the program after tax year 2030.
HB 983 - State Tax Credits, Modifications, and Exemptions - Alterations and Repeal
If passed, this bill would have (1) altered and sunset the enterprise zone program and several other business tax credit programs; (2) disallowed the dividends paid deduction for real estate investment trusts under the income tax; (3) repealed various sales and use tax exemptions; (4) repealed the motor fuel tax cost of collection allowances; and (5) limited the tobacco tax exemption for cigarettes brought into the State by a consumer to one carton of cigarettes.
SB 787 / HB 1585 - Maryland Economic Development Corporation - Major Information Technology Development Projects - Project Management
If passed, this bill would have authorized MEDCO to participate on the project management team for a major information technology development project (MITDP) by working with the Department of Information Technology, State agencies, or vendors. It would have established a pilot MITDP project and required MEDCO to evaluate the feasibility of using alternative financing mechanisms for MITDPs.
HB 960 - Economic Development - Federal Employee-to-Entrepreneur
ProgramEstablishment
If passed, this bill would have established the Federal Employee to Entrepreneur Program in the Department of Commerce to provide former or transitioning federal employees with the training, tools, and mentorship for transitioning to entrepreneurship; and required the Governor to include in the annual budget bill an appropriation of $400,000 for the Program.
HB 120 - Moratorium on Construction of New Data Centers - Co-Location and Generation Contingency
If passed, this emergency bill would have prohibited approval or construction of a data center in the State that has not received all required permits before the bill takes effect. The bill would have terminated if the General Assembly enacted certain related legislation.
HB 1411 - Data Center Planning and Transparency Act
If passed, this bill would have required: (1) the owner or operator of a proposed, planned, or approved large-scale data center to submit a disclosure report to specified agencies and elected officials; (2) local jurisdictions to adopt a large-scale data center plan and related zoning regulations; and (3) those conditions to be met before State financial assistance or incentives are provided to an owner or operator of a large-scale data center.
HB 1534 - Data Centers - Standards for Operation and Siting
If passed, this bill would have required an owner or operator of a data center to meet specified requirements if the data center is located within 2,500 feet of a school property and to comply with specified standards the bill requires the Department of Environment to establish by regulation. The bill would have limited local discretion to approved data center construction and would have required applicants to show that decommissioned industrial or power plant sites had been evaluated if proposing to construct a data center on previously undeveloped land.
HB 560
- Sales and Use Tax and Property TaxExemptions for Data Centers - Repeal
If passed, this bill would have repealed a specified sales and use tax exemption for the sale of qualified data center personal property for use at a qualified data center. The bill would have repealed the authority of local governments to reduce or eliminate the percentage of the assessment of any data center personal property used in a qualified data center.
SB 427 / HB 1595 - Property Taxes - Authority of Counties to Establish a Subclass and Set a Special Rate for Personal Property of Data Centers
If passed, this bill would have authorized Baltimore City and county governments to establish a subclass of personal property consisting of all the personal property of a specified qualified data center and to set a single special personal property tax rate for all the personal property of a specified qualified data center.
HB 1371 - Maryland-Africa and the Caribbean Investment and Development ProgramEstablishment
If passed, this bill would have established the Maryland-Africa and the Caribbean Investment and Development Program and a related special fund, administered by the Department of Commerce, as well as an advisory board. Its purpose would have been to study and promote investment, trade, and economic development between the African diaspora in Maryland and Africa and the Caribbean region. It would have required the Governor to include $10 million for the fund in the annual budget bill for fiscal 2028 through 2032.
SB 247 / HB 400 - Biotechnology Investment Incentive Tax Credit - Conversion to Grant Program
If passed, this bill would have converted the Biotechnology Investment Incentive Tax Credit (BIITC) to the Biotechnology Investment Incentive Grant Program (BIIGP) within the Department of Commerce. The bill would have repealed the BIITC Reserve Fund, established the BIIGP Fund, and required the Governor to include an appropriation of $10 million to the Fund in the annual budget bill.
SB 69 / HB 147 - Nonprofit Organizations NavigatorTermination Provision - Repeal
If passed, this bill would have repealed the sunset provision associated with the nonprofit organizations navigator within the Department of Commerce, making the position permanent.
SB 867 - Economic Development - Maryland Aerospace and Technology CommissionAlterations
If passed, this bill would have made various changes to the membership, purpose, staffing, duties, and responsibilities of the Maryland Aerospace and Technology Commission within the Department of Commerce, to include authorizing the commission to provide grants to eligible entities for the development of emerging aerospace-related technologies, research, workforce training, and the development of specified local infrastructure improvements.
HB 1580 - Economic Development - Maryland Enhanced Tax Increment Financing Districts
If passed, this bill would have authorized MEDCO to issue bonds for a Maryland enhanced tax increment financing district that includes a convention center or is within a ½-mile of a transit center, on approval from the Board of Public Works.
SB 539 - Department of Social and Economic Mobility - Workforce Opportunities Grant Program and Fund
If passed, this bill would have established the Workforce Opportunities Grant Program and associated special fund in the Department of Social and Economic Mobility to provide grants to support the planning and execution of workforce events that connect job seekers with employers. It would have required the Governor to include in the annual budget bill an appropriation of at least $500,000 for fiscal 2028 through 2030.
SB 455
/ HB 506 - Economic DevelopmentTransformational Project Financing ProgramEstablishment
If passed, this bill would have established a Transformational Project Financing Program and Fund within the Department of Housing and Community Development to support development districts that have a transformational plan (as defined) and for which the local governing body has approved a tax increment financing plan before July 1, 2035, and pledged certain real property tax increment revenues.
HB 179 - Department of Commerce - Complaint Portal and Annual Report
If passed, this bill would have required the Department of Commerce to create and maintain a portal on its website that allows members of the public to file a complaint if a State or local governmental unit takes longer than 60 days to process an application for a license, form, certificate, certification, permit, or registration for a business or nonprofit organization.
SB 881 / HB 1007 - Commercial Financing - Small Business Truth in Lending Act
If passed, this bill would have established a regulatory framework for businesses that engage in “commercial financing” transactions. It would have established requirements related to disclosures, annual percentage rate calculations, repayment terms, and other related items, as well as the extension of special offers, and related to licensing of persons engaged in specific activities.
HB 1256 - Income Tax - Angel Investor Tax Credit
If passed, this bill would have reinstated, altered, and renamed the Innovation Investment Incentive Tax Credit Program. Under its provisions, a qualified investor that invests at least $25,000 in a qualified Maryland company engaged in a specified economic sector would have been eligible for a refundable State income tax credit equal to 33% of the amount of the investment, not to exceed $250,000.
SB 780 / HB 1287 - Certificate of Public Convenience and Necessity - BURDEN Analysis (CHERISH Our Communities Act)
If passed, this bill would have required an application for a Certificate of Public Convenience and Necessity for the construction of a power generating station (excluding a solar, wind, or geothermal energy generating station) located within an “at-risk census tract” to include a baseline understanding of risks, disparities, and environmental needs, or “BURDEN” report.
HB 1343 - Internet Gaming - Authorization and Implementation
If passed, this bill, subject to voter referendum, would have authorized the State Lottery and Gaming Control Commission to license qualified applicants to conduct and operate Internet gaming in the State. Licensees would have retained 80% of Internet gaming proceeds from live dealer games and 45% of the proceeds from all other Internet gaming, and, after other specified distributions, the remainder of Internet gaming proceeds is distributed to the Blueprint for Maryland’s Future Fund.
SB 885 - Internet Gaming and Online BingoAuthorization and Implementation
If passed, this bill, subject to voter referendum, would have authorized the State Lottery and Gaming Control Commission to license qualified applicants to conduct and operate Internet gaming or online bingo in the State. Licensees would have retained 80% of Internet gaming proceeds from live dealer games and 60% of the proceeds from all other Internet gaming and online bingo proceeds, and, after other specified distributions, the remainder of Internet gaming and online bingo proceeds is distributed to the Blueprint for Maryland’s Future Fund.
SB 779 / HB 1472 - Better Small Business Employee Benefit Act of 2026
If passed, this bill would have exempted health benefit plans provided by a professional employer organization that engages in employee leasing to small employers from the requirements of the Maryland Health Insurance Reform Act and provisions governing the Maryland Health Benefit Exchange.
HB 1206 - Procurement - Disadvantaged Business Enterprise (DBE) Reevaluation Assistance Program - Established
If passed, this bill would have established the Disadvantaged Businesses Enterprise Reevaluation Assistance Program in the Department of Social and Economic Mobility to provide assistance to DBEs pursuing recertification. The bill would have required the Department of Social and Economic Mobility to collaborate with the Department of Commerce to provide services to eligible DBEs either directly or through third-party agreements.
HB 1177 - Small Business Reserve Program - VeteranOwned Small Business Enterprises - Outreach
If passed, this bill would have required the Department of Social and Economic Mobility to develop an outreach program to increase participation in the Small Business Reserve Program by veteran-owned small business enterprises.