Income Tax - Earned Income Tax Credit - Alteration and Sunset Repeal
Impact
If enacted, HB992 would have a considerable impact on state law by redefining the parameters for how the EITC is calculated and claimed in Maryland. This would create a more inclusive environment for tax relief for low to moderate-income families. By removing the sunset provision, the bill ensures that the benefits of the EITC remain available to eligible Maryland residents indefinitely, which could improve the economic stability of those families who depend on this relief. Moreover, it is expected to stimulate local economies as families gain more disposable income.
Summary
House Bill 992 focuses on the Maryland Earned Income Tax Credit (EITC) by altering its current structure and removing a sunset provision that previously limited its duration. The bill proposes significant changes, such as modifying the percentage of the federal earned income tax credit utilized in determining the state EITC claims. In addition, it includes provisions that will allow certain individuals to continue claiming the credit beyond the original sunset date, thereby offering continued financial support to eligible taxpayers who rely on this benefit.
Contention
The adjustments proposed in HB992 could elicit differing opinions among lawmakers and stakeholders. Supporters, particularly those representing low- and middle-income constituents, argue that the changes will promote economic stability and equity. However, opponents may express concerns regarding the financial implications on state revenues, fearing that it could result in reduced funding for other essential services. The debate might center around the balance between providing tax relief to families and maintaining adequate state funding.