Bill > SB104

This bill establishes a new state income tax credit for individuals who live with and provide care for elderly parents in Maryland. Under the legislation, taxpayers can claim a $3,000 tax credit if they meet specific criteria: they must reside in the same principal residence as a parent who is at least 70 years old for a minimum of 6 months during the tax year, provide care for that parent, not be a dependent of another taxpayer, and have a federal adjusted gross income that does not exceed $103,650 for individual returns or $161,000 for joint returns. Taxpayers can claim the credit for more than one parent, but only one household member can claim the credit for a specific parent. If the credit amount exceeds the individual's state income tax, they may receive a refund for the difference. Additionally, the bill includes a provision to adjust the income thresholds annually based on the cost of living, starting from the 2025 tax year. The legislation will take effect on July 1, 2025, and apply to tax years beginning after December 31, 2024.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0104?ys=2025RS