GENERAL ASSEMBLY

TAX CREDIT EVALUATION COMMITTEE

Richard S. Madaleno, Jr., Senate Chair (chosen by Senate President) (410) 841-3137, (301) 858-3137
Jay Walker, House Chair (chosen by House Speaker) (410) 841-3581, (301) 858-3581

Staff: J. Ryan Bishop; Robert J. Rehrmann.

c/o Department of Legislative Services
Legislative Services Building, 90 State Circle, Annapolis, MD 21401
(410) 946-5510, (301) 970-5510


Report to General Assembly due January 28, 2014.

The Tax Credit Evaluation Committee was authorized in 2012 (Chapters 568 & 569, Acts of 2012). The Committee provides legislative evaluation and review of certain tax credits to determine whether the tax credit continues to be viable and in the public interest. Any tax credit with a statutory termination date is subject to consideration by the Committee a year in advance of its termination date.

On or before May 31 in the year before a tax exemption or modication is due for review, the Senate President and House Speaker appoint the Tax Credit Evaluation Committee. By June 30, the Committee is to have consulted with the appropriate State agencies and prepared an evaluation plan. By October 30, the Department of Legislative Services reports to the General Assembly on the purpose of the tax credit under review; whether its original intent is still appropriate; amd whether it still meets its objective. The Department also considers whether the purpose of the tax credit could be achieved more effectively through an alternative method; and the cost of the tax credit, including administrative costs and lost revenue. The Department's report is available to the public and, after its submittal, is followed by a public hearing.

During the legislative session, the Tax Credi Evaluation Committee also reports to the General Assembly on the tax credit under review, and recommends that it be continued, modified, or terminated. Any necessary legislation is included in the Committee's report, and any extention of a tax credit is set for five years.

Tax credits subject to the evaluation process from 2014 through 2017 are noted in the Annotated Code of Maryland (Tax-General Article, sec. 1-303).

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