Bill > SB377

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 sets new income and phase-out amounts for calculating the credit, which is based on the federal EITC under Section 32 of the Internal Revenue Code. Furthermore, starting after the 2025 tax year, these income and phase-out amounts will be automatically adjusted each year for inflation, ensuring the credit's value keeps pace with rising costs. The bill also clarifies that for individuals without qualifying children, the credit is calculated without regard to certain federal age requirements and limitations, and any credit amount exceeding the individual's tax liability can be refunded.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0377?ys=2026RS