Bill > HB708

This bill expands the Earned Income Tax Credit (EITC) for individuals without qualifying children in Maryland by modifying the income thresholds and creating an annual inflation adjustment mechanism. Specifically, the bill changes the state-level earned income tax credit for individuals without children by increasing the earned income amount from its current level to $7,840 and the phase-out amount to $19,160. Starting in 2025, these amounts will be automatically adjusted annually for inflation using the Cost-of-Living Adjustment (COLA) specified in the Internal Revenue Code, with any increases rounded down to the nearest $10. The bill enables individuals without qualifying children to claim 100% of the federal earned income credit and removes previous limitations on the tax credit amount. Unlike the federal EITC, this state version eliminates the minimum age requirement for childless workers and calculates the credit without certain federal limitations. The changes will apply to all taxable years beginning after December 31, 2024, making the tax credit more accessible and potentially providing greater financial support for low-income workers without children.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0708?ys=2025RS