Maryland Gov. Wes Moore signed legislation on Friday to help veterans, including tax relief on retirement income.
With a National Guard aircraft behind him, the former U.S. Army captain and paratrooper signed the bills in a hangar at Martin State Airport, which is home to the Maryland Air National Guard, in Middle River, Maryland.
Moore, a Democrat, prioritized the tax relief measure for military retirees called the Keep Our Heroes Home Act, because it’s designed as an incentive for veterans to stay in Maryland, instead of moving to another state with more favorable tax conditions.
The law will exempt up to $20,000 of military retirement income for Maryland residents who are 55 and older. It will exempt up to $12,500 for retirees who are younger than 55. That’s an increase in exempted income the state currently allows: $15,000 for 55 and over and $5,000 for those under 55.
The state estimates that about 33,000 military retirees will be eligible to subtract additional retirement income as a result of the new law. It takes effect July 1 and applies to tax year 2023 and beyond.