Senate Bill 295, discussed by the Budget and Taxation Committee, would establish an income tax reconciliation program allowing people who were incarcerated for between six months and 10 years to apply to participate, set up installment plans to pay back taxes, and receive waivers of penalties and interest for the period of incarceration.

Committee staff summarized testimony from two advocacy groups: a group identified in the transcript as "PREPARE, PREPAIR for Parole and Reentry" and the University of Baltimore Center For Criminal Justice Reform. The staff said both groups submitted written testimony favorable with amendments and recommended expanding the bill's eligibility window beyond the proposed six months to 10 years.

The presenter said the bill as written applies only to tax years 2025 through 2029. The presenter also noted that the Comptroller’s office testified there are some existing programs that might serve affected individuals, but incarcerated people often do not know those programs exist.

Committee members asked whether the proposal would interfere with existing post-release processes—such as meetings with probation agents or court arrangements to manage outstanding financial obligations. One member said the program might duplicate or complicate processes that currently allow people leaving incarceration to arrange manageable repayment plans. Another committee member said, "I think we should be doing what we can to get people back on their feet, and if they're willing to ... live up their responsibilities, it's a good thing that we can help them do that," and asked staff to map existing comptroller programs before proceeding.

No formal committee action on the bill was recorded in the transcript; the committee asked staff to gather more information about existing programs and the policy need before moving forward.