Bill > HB542

This bill expands eligibility for Maryland's Earned Income Tax Credit (EITC) for individuals without qualifying children by adjusting the income thresholds at which the credit begins to decrease, known as the "phase-out" amounts. Specifically, for taxable years beginning after December 31, 2025, the bill increases the earned income amount and phase-out amounts used to calculate the credit, effectively allowing more individuals without dependents to benefit from the EITC. Furthermore, after the 2025 tax year, these income thresholds and phase-out amounts will be automatically adjusted annually for inflation, ensuring the credit's value keeps pace with rising costs. The EITC is a federal tax credit that Maryland supplements, and this bill aims to make the state's version more accessible to a broader range of low-to-moderate income working individuals.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0542?ys=2026RS