State of Maryland

Simple question, does the state of Maryland apply the Foreign Earned Income Exclusion?

State of Maryland like any other U.S. state does not apply foreign earned income exclusion. However, you are lucky if you have to deal with Maryland instead of CA or NY.
You are required to file MD tax return only if you resided in MD for over 183 days. Even if you file state tax return, you only pay taxes for income earned while you were resident of MD.
On your federal tax return, you have to properly fill out Part-Year Resident State Allocation Worksheet and enter resident state "FC" - for the income earned when you were residing abroad.
This information will flow to MD state return. Regardless of what you enter in "Source of income" column, this income is not taxable in MD. Same rules apply to DC and VA.
You can find more about specific state tax regulations at http://www.taxesforexpats.com/expat-tax-advice/official-resources.html

Cheers, thanks for the info!

Virginia requires you to fill every year even if you live outside the USA (and VA was your last state of residence).  I've had to do this for 8 years now since moving from VA to UK.
If I make it back to the USA in future it will be to Maryland, however, as I grew up in Baltimore.

I couldn't face Northern Virginia traffic again!

NOVA traffic, YUCK!