SB 48
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 48 (Senator Young, et al.)
Budget and Taxation Ways and Means
Income Tax - Subtraction Modification - Living Organ Donors
This bill expands the existing living organ donor State income tax subtraction modification
by (1) increasing from $7,500 to $10,000 the maximum value of the subtraction
modification and (2) allowing individuals to deduct unreimbursed child or elder care
expenses and medication expenses attributable to a qualified organ donation. The bill takes
effect July 1, 2021, and applies to tax year 2021 and beyond.
Fiscal Summary
State Effect: General fund revenues will decrease by a minimal amount beginning in
FY 2022 as a result of additional subtraction modifications claimed against the personal
income tax. The annual revenue loss is expected to be less than $10,000. Expenditures are
not affected.
Local Effect: Local revenues decrease by a minimal amount beginning in FY 2022. The
annual revenue loss is expected to be less than $6,500. Local expenditures are not affected.
Small Business Effect: None.
Analysis
Current Law: Chapter 36 of 2018 established a subtraction modification for up to $7,500
of the qualified expenses incurred by a living organ donor. An individual who donates all
or part of the individual’s liver, kidney, intestine, pancreas, lung, or bone marrow for
transplant in another individual is eligible to claim the subtraction modification. Eligible
expenses include the unreimbursed travel and lodging expenses and lost wages that are
attributable to the organ donation. Subtraction modifications can be claimed beginning
with tax year 2018.
State Revenues: The bill expands the living organ donor subtraction modification
beginning in tax year 2021. Based on the number of expected qualifying donors, general
fund revenues will decrease by a minimal amount beginning in fiscal 2022. The annual
revenue loss is expected to be less than $10,000.
Local Revenues: Local income tax revenues will decrease by a minimal amount beginning
in fiscal 2022 as a result of additional subtraction modifications claimed against the
personal income tax. The annual revenue loss is expected to be less than $6,500.
Additional Information
Prior Introductions: SB 651 of 2020 passed the Senate and was referred to the
House Ways and Means Committee, but no further action was taken. Its cross file, HB 944,
received a hearing in the House Ways and Means Committee, but no further action was
taken.
Designated Cross File: HB 10 (Delegate K. Young) - Ways and Means.
Information Source(s): Comptroller’s Office; U.S. Department of Health and Human
Services Organ Procurement and Transplantation Network; Department of Legislative
Services
Fiscal Note History: First Reader - January 12, 2021
rh/hlb Third Reader - February 18, 2021
Analysis by: Robert J. Rehrmann Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 48/ Page 2


Statutes affected:
Text - First - Income Tax - Subtraction Modification - Living Organ Donors: 10-208 Tax General
Text - Third - Income Tax - Subtraction Modification - Living Organ Donors: 10-208 Tax General