In a Wednesday afternoon hearing of the Senate Budget and Taxation Committee, Chairwoman Nancy King (District 39 – Montgomery County) detailed her proposed legislation (Senate Bill 885) that seeks to provide tax credits for businesses that provide paid internships.
The bill would create a tax credit for Maryland employers equal to 10% of the wages paid to the intern but max out at $1,000 per intern. Funding for the credit would be capped at $300,000 annually and employers would be able to claim the credit for up to five paid interns. The Department of Labor, Licensing, and Regulation (DLLR) and the Office of the Comptroller would be responsible for approving and administering the tax credit respectively.
Explaining the benefit of the legislation, King stated: “As we continue to search for ways for students to reduce their higher education debt, this legislation would provide a way for students to continue their education while earning money.”
Senator King is the sole Senate sponsor of Senate Bill 885. The legislation is cross-filed in the House of Delegates as House Bill 582 where it’s sponsored by Delegate Alonzo Washington (District 22 – Prince George’s County) and cosponsored by seven of his House colleagues including Delegates Acevero (District 39 – Montgomery County), Barnes (District 21 – Prince George’s and Anne Arundel Counties), Ebersole (District 12 – Baltimore and Howard Counties), Fisher (District 47B – Prince George’s County), Luedtke (District 14 – Montgomery County), Solomon (District 18 – Montgomery County), and Wilkins (District 20 – Montgomery County).
Having now been heard in its committee of origin, Senate Bill 885 awaits a vote of the Budget and Taxation Committee. House Bill 582 was heard before the House Ways and Means Committee on February 20th and similarly awaits a vote from that committee.
All legislation must successfully pass both the Maryland Senate and the Maryland House of Delegates by Sine Die on Monday, April 8th to be sent to Governor Hogan to be approved or vetoed.