Bill > H2871

This bill aims to increase family stabilization through the earned income tax credit (EITC) by expanding the eligibility criteria and the amount of the credit. Key provisions include: 1) Defining new terms like "eligible individual," "eligible caregiver," and "eligible student" to broaden EITC eligibility beyond just those with qualifying children. 2) Establishing a "basic credit" amount of $2,400 that will be adjusted annually for inflation, and guaranteeing at least this minimum credit amount for eligible individuals, even those without earned income. 3) Increasing the EITC percentage for families with more than 3 children and allowing the credit to be claimed using either a Social Security number or Individual Taxpayer Identification Number. 4) Requiring the state to disburse 50% of the EITC refund in advance payments during the tax year, and mandating employers to display information about the EITC. The bill applies to tax years beginning on or after January 1, 2022, with the goal of providing more financial support to low-income families and individuals through an expanded state EITC program.

Budget and Finance

https://malegislature.gov/Bills/192/H2871