Maryland’s IRC Conformity Provision

Generally, Maryland income tax law conforms to federal income tax law except when the Maryland General Assembly has enacted decoupling legislation, or when automatically decoupled. Maryland law provides for automatic decoupling when: (1) an amendment to the IRC affects the determination of federal adjusted gross income (FAGI) or federal taxable income for the taxable year the amendment is enacted or any preceding taxable year; and (2) the amendment has a revenue impact of $5 million or more for the fiscal year that begins during the calendar year in which the amendment is enacted or any preceding fiscal year. The revenue impact is determined by the Maryland Bureau of Revenue Estimates (BRE) in a report issued 60 days after an amendment to the IRC.

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