Maryland state leaders announced Monday that they have reached a bipartisan agreement to provide $1.86 billion in tax relief over five years for Maryland retirees, small businesses and low-income families.Combined with the recently-enacted gas tax suspension, this legislative session will deliver almost $2 billion in tax relief, according to the governor's office.At the start of Session 2022, he governor made tax relief for Maryland retirees a priority."Today, we are announcing the largest tax cut package in state history with major and long-overdue relief for Maryland's retirees," Gov. Larry Hogan said in a statement. "Cutting our state's retirement taxes is something we have been trying to accomplish for seven years, and I want to thank the leaders of the General Assembly for working with us to get this done for Maryland's seniors. This agreement will deliver on our promise to provide real, long-term relief for hard-working Marylanders dealing with inflation and higher prices, and help create more jobs and more opportunity to continue our strong recovery.""The last two years of the pandemic have shown the cracks in our state's civic infrastructure," Senate President Bill Ferguson said in a statement. "As I've said since the beginning of the 2022 legislative session, everything we do must prioritize our state's economy and the health of our residents. This historic agreement demonstrates that regardless of political party, leaders come together to deliver vital services and economic relief for families, seniors and small businesses.""The House started this session with a clear goal of helping Marylanders left behind in the post-pandemic recovery," House Speaker Adrienne Jones said in a statement. "This bipartisan agreement helps hundreds of thousands of seniors on fixed incomes who are struggling with inflation and puts families on a stronger footing as they buy necessities and pay for child care or college. The significant increase in capital spending, coupled with the Work Opportunity Tax Credit, will help Maryland businesses put more chronically unemployed Marylanders back to work."The tax relief agreement includes the following provisions for fiscal year 2023 through 2027: Tax Relief For Retirees: Marylanders 65 and older making up to $100,000 in retirement income, and married couples making up to $150,000 in retirement income. As a result, 80% of Maryland's retirees will receive substantial relief or pay no state income taxes at all. ($1.55 billion) The Work Opportunity Tax Credit incentivizes employers and businesses to hire and retain workers from underserved communities that have faced significant barriers to employment. ($195 million) Family Budget Boosters will provide sales tax exemptions for child care products such as diapers, car seats, and baby bottles and critical health products such as dental-hygiene products, diabetic-care products and medical devices. ($115.6 million) The governor's office said the agreement also makes a one-time $800 million investment in the Blueprint for Maryland's Future while maintaining a record level in the Rainy Day Fund.The agreement uses the state's surplus to make strategic and historic investments that:Support public safety and victims of crime; Ensure Maryland's world-class health system by supporting hospitals, nursing homes, and assisted living facilities; Expand Medicaid dental coverage for adults, in-home medical care and autism services; Help families by expanding access to child care, providing bonuses for public school staff, and increasing student aid at higher education institutions; Spur local economies and job opportunities through capital funds for school construction, affordable rental housing, state facility maintenance and local transportation infrastructure; and Protect against the growing threat of cyber attacks.This agreement follows bipartisan discussions that included state Budget Secretary David Brinkley, Senate Budget and Taxation Committee Chairman Guy Guzzone and House Appropriations Committee Chairwoman Maggie McIntosh.The governor, Senate president and House speaker plan to hold a bill-signing ceremony for these measures later this week.