Bill > SB668

This bill expands the Earned Income Tax Credit (EITC) for Maryland residents without qualifying children by modifying key income thresholds and establishing an annual inflation adjustment mechanism. Specifically, the bill changes the calculation of the tax credit for individuals without qualifying children by substituting new income amounts: raising the earned income amount 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 specified in the Internal Revenue Code, with any increases rounded down to the nearest $10. The bill removes previous limitations on the maximum tax credit and ensures that if the credit exceeds the individual's total tax liability, the difference can be claimed as a refund. This change aims to provide more financial support to low-income workers without children, making the tax credit more responsive to economic changes and potentially providing greater relief to workers at the lower end of the income spectrum. The bill will take effect on July 1, 2025, and apply to all taxable years beginning after December 31, 2024.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0668?ys=2025RS