On February 26, Legislative Director Kevin Kinnally submitted written testimony to the Ways and Means Committee in opposition to HB 1035 -Income Tax – Subtraction Modification – Overtime Compensation. 

This bill allows Maryland residents to subtract certain overtime pay from their state income tax, effectively lowering the amount of tax they owe on those extra earnings.

MACo steadfastly resists state-mandated reductions in local revenue that undermine fiscal autonomy. In today’s fiscal climate of economic uncertainty and rising local costs, tax incentives should be structured as “local option” tools rather than mandatory requirements to best allow counties the flexibility to tailor fiscal policies to their specific community needs and budget priorities.

From MACo Testimony:

Counties are eager and committed partners in promoting economic growth and creating opportunity − and prefer local autonomy in determining the best way locally. MACo opposes state-mandated reductions in local revenue sources, but welcomes flexible, optional tools to serve and respond to local needs and community priorities.

More on MACo’s Advocacy: 

• Follow MACo’s advocacy efforts during the 2026 legislative session on MACo’s Legislative Tracking Database
• Learn more about MACo’s 2026 Legislative Initiatives
• Read more General Assembly News on MACo’s Conduit Street blog