# Maryland SB 0388: Economic Development - Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act Maryland SB 0388, Economic Development - Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act, is a 2026 Regular Session Senate bill sponsored by Malcolm Augustine (Democratic); status signed, last action 2026-05-12 (Approved by the Governor - Chapter 351); PRIA reads it as touching household money (as of 2026-10-11). - Canonical: https://policyrisk.com/state-bill/MD-SB0388-2026RS - As of: 2026-10-11 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Maryland SB 0388 - State: Maryland - Session: 2026 Regular Session - Title: Economic Development - Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act - Status: signed - Chamber: Senate - Introduced: 2026-01-27 - Last action: 2026-05-12, Approved by the Governor - Chapter 351 - Sponsor: Malcolm Augustine (Democratic) - Cosponsors: 8 - Subjects: Economic Development, Taxes - Income, Taxes - Property, Allegany County, Annotated Code of Maryland, Appropriations, Armed Forces and Uniformed Services, Art, Music, and Cultural Affairs -see also- EthAff; Mus; etc, Auditors and Audits, Biotechnology, Bonds -see also- County & Baltimore City Bonds; State Bonds, Commerce and Business -see also- ElectrComm; ForeignTr; etc., Commerce, Department of, Community Development, Comptroller, Corporations -see also- Municipal Corps; Public Corps & Inst, Data -see also- Census; Demographics, Disabilities, Disclosure, Dorchester County, Enterprise Zones, Evaluations and Reviews, Fees -see also- Attys' Fees; Devt Fees & Taxes, Financial Institutions -see also- Banks; Credit Unions; etc., Forms, Garrett County, General Assembly -see also- AELR Cmte; LegislativePolCmte, Goods and Services -see also- Retail Sales; TermnSvc; TrfGds, Governor, Housing and Community Development, Department of, Income Tax, Information Technology, Interest, Investments -see also- Securities, Legislative Policy Committee, Minority Business Enterprises, Minorities, Names, Nonprofit Organizations, Notices, Penalties and Sentences -see also- Death Penalty, Pilot Programs, Procurement, Public Corporations and Instrumentalities -see also- HBE, Reports, Revenue and Taxes -see also- (specific tax), Sales and Use Tax, Small Business, Somerset County, Sunset, Tax Credits, Technology -see also- AeroT; BioT; EnergyT; InfoT; MedT; etc, Treasurers, Women -see also- Gender, Work, Labor, and Employment -see also- JobTrn; Leave; etc. - Touches household money: yes - Roll calls: 3 (213 yes, 10 no in all) - Economic provisions PRIA read: 27 ## Summary No summary available. ## Bill overview: provisions PRIA read - Bigger state surety bonds for contractors: benefit, high. The state financing authority can now act as surety on bonds up to $5,000,000 each. Bonds still need approval based on the contractor’s bond worthiness. The higher cap does not apply to bonds paid with grant funds. - Big property tax credits in RISE zones: benefit, high. Local governments must give a property tax credit for qualified nonresidential business property in a RISE zone. For property in an enterprise area, the credit is 80% of the tax after other required §9‑103 credits, for five years. For property in a focus area, the credit is 100% after §9‑103 credit… - Refundable tax credit for film projects: benefit, high. Qualified film production companies can claim a Maryland income tax credit for in‑state production costs. If the credit is larger than the tax you owe, you get a refund. You must apply to the Department of Commerce before starting work, and estimated in‑State direct costs must exceed $250,000. If a… - Tax credits for security and secure facilities: benefit, high. For tax years starting after December 31, 2022 and before January 1, 2033, businesses with 500 or fewer employees can claim credits. You can claim up to $200,000 for security‑clearance administrative costs and up to $200,000 for first‑year rent for qualified Maryland space. You can also claim 50% o… - No sales tax on affiliate transfers: benefit, high. Sales and use tax does not apply to certain services, digital codes, and digital products sold within the same corporate group. Both the seller and the buyer must be members of the same affiliated group under federal rules. This stops sales tax on qualifying transfers between affiliates. - Help for businesses in RISE zones: benefit, medium. The state set up a RISE Fund that can pay rental help for businesses in RISE zones and cover related admin costs. Starting in fiscal year 2027, the Department waives a filing fee each year if your business is in a listed tech sector and you show it located in a RISE zone within 3 years of the fee d… - More capital for small and minority firms: benefit, medium. Commerce gives grants to approved fund managers to finance small, minority, and women-owned businesses. The Department must approve a manager’s loan disbursement within 30 days. At least 50% of eligible account funds (not Strategic Energy Investment Fund money) must go to firms near video lottery f… - One business tax credit extended: benefit, medium. A business tax credit and its subtitle now end on January 1, 2032, not January 1, 2027. Credits earned before the end can be carried forward, and eligibility can be based on positions filled before termination if other rules are met. - Higher caps for local development projects: benefit, medium. For projects the state calls local economic development opportunities, loans or investments can be up to $7,500,000. Grants for those projects can be up to $5,000,000. - More casino funds for small businesses: benefit, medium. The state directs 1.5% of video lottery proceeds so that $5 million goes to the Small Business Development Financing Fund. The rest of that 1.5% goes to the Small, Minority, and Women‑Owned Businesses Account. In Allegany County, 0.75% of proceeds go to that account during the facility’s first 10 y… - More state aid for local projects: benefit, medium. The maximum state assistance to a local government or MEDCO for a project is now $5,000,000, up from $3,000,000. For Tier I county projects, the Department of Commerce sets the amount instead of a fixed cap. This allows larger financing for local economic development work. - Public tracking of business incentives: benefit, low. The Department publishes a machine‑readable database each year with recipients, credits, payments, job counts, salaries, project costs, and any recaptures with reasons. Reports must include more detail on jobs, pay, benefits, MBE assistance, and state revenue estimates. The Department must also del… - Commerce and Housing co-run development grants: benefit, low. The Department of Commerce now administers the Community Development Block Grant for Economic Development together with the Department of Housing and Community Development. Both agencies share responsibility for this federal grant in Maryland. This can improve coordination for local grant awards. - Biotech investment tax credit repealed: cost, high. The law removes the biotechnology investment tax credit. Investors and qualifying biotech companies no longer get this tax break. - Harsher penalties for lying on applications: cost, low. Knowingly making a false statement to the state financing authority is now a more serious crime. A violator faces up to 5 years in jail, a fine up to $50,000, or both. This replaces the old limits of 6 months in jail and a $1,000 fine. - Bigger state financing for small businesses: mixed, high. The law raises the maximum state loan guarantee and direct loan to $3,000,000. It also guarantees up to 90% of a surety’s loss, capped at $3,000,000. The state can provide up to $3,000,000 in equity financing, but any guaranteed equity is capped at 10% of the investor’s amount or $250,000. The Auth… - Loans and grants for Maryland businesses: mixed, high. The Maryland Economic Development Assistance Fund gives loans, grants, or investments to help businesses, local governments, and MEDCO grow jobs and redevelop sites, including aquaculture, arts, child care facilities, and brownfields. Projects usually can get up to 70% of costs; the Fund can pay 10… - Job tax credits in RISE zones: mixed, high. Your business can get up to $3,000 per qualified economically disadvantaged hire and up to $1,000 per other qualified hire. If you meet the enhanced rules, you can get up to $4,500 per focus‑area disadvantaged hire and up to $1,500 per other focus‑area hire. Hires cannot replace someone employed in… - R&D tax credit runs through 2030: mixed, high. The law removes a prior sunset so the R&D credit applies to all tax years that begin after December 31, 1999. The state stops approving new R&D credits for tax years that start after December 31, 2030. If your tax year starts in 2030 but is not a calendar year, you can claim only a prorated credit… - Advanced tech grants with big match rules: mixed, medium. The Build Our Future Program gives grants for tech infrastructure through June 30, 2030. A single entity can get up to $2,000,000 each fiscal year. You must provide a match equal to 200% of grants up to $1,000,000, or 400% for grants over $1,000,000 up to $2,000,000. Other State grants do not count… - Small business financing tools and rules: mixed, medium. Maryland creates a nonlapsing Small Business Development Financing Fund and moves prior program obligations into it. The Treasurer invests the Fund and reports each year. The Fund supports contract financing and a guaranty program. The Authority can guarantee up to 80% of a long‑term loan. To quali… - Build Our Future grants: college cap: mixed, medium. No more than 50% of yearly grant money can go to colleges and universities. College projects must partner with private industry or show major economic impact or help start technology clusters. The Corporation may adopt rules to run the program. - Strategic deal fund with 60-day review: mixed, medium. Maryland redesignates an account as the Strategic Closing Fund to finance major economic development deals. The Treasurer holds the Fund and the Comptroller accounts for it. Before any loan, grant, or investment, Commerce must send detailed materials to the Legislative Policy Committee, which has 6… - Stronger rules and oversight for deal fund: mixed, medium. The Fund can only back extraordinary projects and must include performance terms and clawbacks. It cannot fund sports facilities, projects outside Maryland, or replace other available State or local money. The Legislative Policy Committee may approve exceptions, with priority for high‑unemployment… - When the law takes effect: mixed, low. Most of the Act takes effect on June 1, 2026. Sections 1, 2, 3, 4, and 6 take effect on July 1, 2026. - When new tax rules start: mixed, low. Section 4 tax rules apply to tax years starting after December 31, 2025. Section 5 tax rules apply to tax years starting after June 30, 2026. - Where Strategic Closing Fund money goes: mixed, low. Investment earnings from the Strategic Closing Fund go to the State General Fund. Loan principal and interest repayments return to the Strategic Closing Fund for future deals. The Fund is held separately, remains nonlapsing, and is invested like other State money. ## Sponsors and cosponsors - Sponsor: Malcolm Augustine (Democratic), Senate - Cosponsor: Pamela Beidle (Democratic), Senate - Cosponsor: Benjamin Brooks (Democratic), Senate - Cosponsor: Nick Charles (Democratic), Senate - Cosponsor: Kevin M. Harris (Democratic), Senate - Cosponsor: Shelly Hettleman (Democratic), Senate - Cosponsor: Nancy J. King (Democratic), Senate - Cosponsor: Clarence K. Lam (Democratic), Senate - Cosponsor: Sara Love (Democratic), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-04-13 | House | Third Reading Passed | pass | 125 | 10 | 5 | | 2026-04-13 | Senate | Third Reading Passed | pass | 45 | 0 | 2 | | 2026-03-23 | Senate | Third Reading Passed | pass | 43 | 0 | | ## Actions (20) - 2026-05-12: Approved by the Governor - Chapter 351 - 2026-04-13: Passed Enrolled (Senate) - 2026-04-13: Third Reading Passed (45-0) (Senate) - 2026-04-13: Senate Concurs House Amendments (Senate) - 2026-04-13: Third Reading Passed (125-10) (House) - 2026-04-11: Second Reading Passed with Amendments (House) - 2026-04-11: Favorable with Amendments {783029/1 Adopted (House) - 2026-04-11: Favorable with Amendments Report by Ways and Means (House) - 2026-03-25: Hearing 4/02 at 1:00 p.m. (Ways and Means) (House) - 2026-03-24: Referred Ways and Means Economic Matters (House) - 2026-03-23: Third Reading Passed (43-0) (Senate) - 2026-03-20: Second Reading Passed with Amendments (Senate) - 2026-03-20: Favorable with Amendments {103823/1 Adopted (Senate) - 2026-03-20: Favorable with Amendments Report by Budget and Taxation (Senate) - 2026-01-30: Hearing 2/18 at 1:00 p.m. (Budget and Taxation) (Senate) - 2026-01-28: Hearing canceled (Budget and Taxation) (Senate) - 2026-01-28: Hearing 2/11 at 1:00 p.m. (Budget and Taxation) (Senate) - 2026-01-28: Hearing canceled (Budget and Taxation) (Senate) - 2026-01-28: Hearing 2/04 at 1:00 p.m. (Budget and Taxation) (Senate) - 2026-01-27: First Reading Budget and Taxation and Finance (Senate) ## Bill text - Enacted, 2026-05-12: [PDF](https://mgaleg.maryland.gov/2026RS/Chapters_noln/CH_351_sb0388e.pdf) - Enrolled, 2026-04-13: [PDF](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0388e.pdf) - Third Reading, 2026-03-20: [PDF](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0388t.pdf) - First Reading, 2026-01-27: [PDF](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0388f.pdf) ## Related bills - SB 0496: Maryland Medical Assistance Program - Coverage for the Treatment of Obesity - Authorization (became law) - SB 0366: Motor Vehicles - Intelligent Speed Assistance System Pilot Program - Establishment (became law) - SB 0244: Code Revision - Health - Maryland Medical Assistance Program (became law) - SB 0148: Income Tax - Credit for 9-1-1 Specialist Retirement Income (Supporting Our 9-1-1 Specialists Act) (became law) - SB 0016: Child Support - Earnings Withholdings Limits (became law) - HB 0529: Code Revision - Health - Maryland Medical Assistance Program (became law) ## Sources - [Enacted (PDF)](https://mgaleg.maryland.gov/2026RS/Chapters_noln/CH_351_sb0388e.pdf) - [Enrolled (PDF)](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0388e.pdf) - [Third Reading (PDF)](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0388t.pdf) - [First Reading (PDF)](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0388f.pdf) ## Related - [SB 0496: Maryland Medical Assistance Program - Coverage for the Treatment of Obesity - A…](https://policyrisk.com/state-bill/MD-SB0496-2026RS) - [SB 0366: Motor Vehicles - Intelligent Speed Assistance System Pilot Program - Establishm…](https://policyrisk.com/state-bill/MD-SB0366-2026RS) - [SB 0244: Code Revision - Health - Maryland Medical Assistance Program](https://policyrisk.com/state-bill/MD-SB0244-2026RS) - [SB 0148: Income Tax - Credit for 9-1-1 Specialist Retirement Income (Supporting Our 9-1-…](https://policyrisk.com/state-bill/MD-SB0148-2026RS) - [SB 0016: Child Support - Earnings Withholdings Limits](https://policyrisk.com/state-bill/MD-SB0016-2026RS) - [HB 0529: Code Revision - Health - Maryland Medical Assistance Program](https://policyrisk.com/state-bill/MD-HB0529-2026RS) - [Maryland bills](https://policyrisk.com/states/maryland/bills) - [Maryland state hub](https://policyrisk.com/states/maryland) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/MD-SB0388-2026RS (as of 2026-10-11).