# Maryland SB 0805: Income Tax - Student Loan Debt Relief Tax Credit - Alterations

Maryland SB 0805, Income Tax - Student Loan Debt Relief Tax Credit - Alterations, is a 2026 Regular Session Senate bill sponsored by Shelly Hettleman (Democratic); status signed, last action 2026-05-26 (Approved by the Governor - Chapter 755); PRIA reads it as touching household money (as of 2026-10-11).

- Canonical: https://policyrisk.com/state-bill/MD-SB0805-2026RS
- 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 0805
- State: Maryland
- Session: 2026 Regular Session
- Title: Income Tax - Student Loan Debt Relief Tax Credit - Alterations
- Status: signed
- Chamber: Senate
- Introduced: 2026-02-06
- Last action: 2026-05-26, Approved by the Governor - Chapter 755
- Sponsor: Shelly Hettleman (Democratic)
- Cosponsors: 0
- Subjects: Taxes - Income, Higher Education, Applicants and Applications, Debt Management, Evidence, Federal Government, Higher Education Commission, Income Tax, Loans -see also- Credit; Mortgages; Scholarships&SFA, Students, Tax Credits, Time
- Touches household money: yes
- Roll calls: 2 (167 yes, 8 no in all)
- Economic provisions PRIA read: 4

## Summary

No summary available.

## Bill overview: provisions PRIA read

- Refundable $5,000 student loan credit: benefit, high. Maryland provides a refundable income tax credit up to $5,000 for student loan borrowers. You must have borrowed at least $20,000 total and still owe at least $5,000 when you apply. Apply to the Maryland Higher Education Commission by September 15 and promise to use the credit to repay your loans.…
- State outreach, reports, and program rules: benefit, low. The Commission runs outreach to tell eligible people about the credit and to prompt colleges to advise new grads, especially those entering public service, starting by September 1, 2024. Each year by January 1, the Commission reports on applicants, awards, and recipient demographics, and gives reco…
- Priority credits for Maryland state employees: mixed, high. Maryland caps total credits at $9 million for tax year 2025 and $18 million each year after 2025. The Commission reserves $9 million first for State employees, with top priority for graduates of Maryland colleges where at least 40% of students are Pell‑eligible. Any unused reserved amount goes to o…
- Use credit in 3 years or repay: mixed, high. You must use your approved credit to repay your student loans within 3 years from the end of the tax year you claim it. Any unused amount is recaptured and becomes Maryland tax you must pay that year. The Commission can extend the 3‑year deadline if you were in forbearance due to SAVE plan litigati…

## Sponsors and cosponsors

- Sponsor: Shelly Hettleman (Democratic), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-04-13 | House | Third Reading Passed | pass | 128 | 8 | 4 |
| 2026-03-20 | Senate | Third Reading Passed | pass | 39 | 0 | 2 |

## Actions (13)

- 2026-05-26: Approved by the Governor - Chapter 755
- 2026-04-13: Returned Passed (Senate)
- 2026-04-13: Third Reading Passed (128-8) (House)
- 2026-04-11: Favorable Adopted Second Reading Passed (House)
- 2026-04-11: Favorable Report by Ways and Means (House)
- 2026-03-25: Hearing 4/02 at 1:00 p.m. (House)
- 2026-03-23: Referred Ways and Means (House)
- 2026-03-20: Third Reading Passed (39-0) (Senate)
- 2026-03-20: Second Reading Passed (Senate)
- 2026-03-20: Favorable Adopted (Senate)
- 2026-03-20: Favorable Report by Budget and Taxation (Senate)
- 2026-02-11: Hearing 3/03 at 1:30 p.m. (Senate)
- 2026-02-06: First Reading Budget and Taxation (Senate)

## Bill text

- Enacted, 2026-05-26: [PDF](https://mgaleg.maryland.gov/2026RS/Chapters_noln/CH_755_sb0805t.pdf)
- Third Reading, 2026-03-20: [PDF](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0805t.pdf)
- First Reading, 2026-02-06: [PDF](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0805f.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_755_sb0805t.pdf)
- [Third Reading (PDF)](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0805t.pdf)
- [First Reading (PDF)](https://mgaleg.maryland.gov/2026RS/bills/sb/sb0805f.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)
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Source: PRIA, https://policyrisk.com/state-bill/MD-SB0805-2026RS (as of 2026-10-11).