Gov. Lawrence J. Hogan Jr.'s proposed RELIEF Act.
The Maryland House of Delegates tacked on additional revisions to Gov. Lawrence J. Hogan Jr.’s (R) billion-dollar COVID-19 relief proposal, including a large expansion to the Earned Income Tax Credit.
Under the House proposal, the Earned Income Tax Credit (EITC) would see the largest single increase in Maryland history, House Majority Leader Eric G. Luedkte (D-Montgomery) said. The proposal would increase the state’s match to the federal EITC for taxpayers with dependents from 28% to 45% for three years, making Maryland the largest EITC refunder in the country.
Hogan’s original stimulus called for direct, immediate payments to Marylanders using the EITC. The first round of payments will remain the same under the House proposal, with $500 payments going to families and $300 to individuals who filed for the EITC in 2019.
The House plan nixes Hogan’s proposal for an additional $250 to families and $150 to individuals who filed for the EITC in 2020. Instead, it would drastically increase the refundable credit that EITC filers get in the state over the next three years. Luedkte said that, if the House amendments are approved, a family with two or more kids that earns $25,000 a year would see an annual credit increase of roughly $1,100.
