Income Tax - Credit for Individuals Without Motor Vehicles (One Less Car Act of 2024)
Note
The bill is intended to remain effective for a period of five years, at which point a review will assess the total utilization and impact of the tax credit. By requiring taxpayers to provide disclosures about the reasons for their vehicle non-ownership when claiming the credit, the state seeks to gather data that could guide future transport and environmental policies.
Impact
Through this bill, Maryland aims to address the environmental challenges posed by vehicular emissions. By financially rewarding individuals who choose not to own a car, the state hopes to encourage a shift towards alternative modes of transportation, such as public transit, cycling, and walking. This could potentially lead to decreased traffic congestion and improved air quality in urban areas, thus creating healthier communities. The estimated credit amount is slated to be $1,000 for those meeting the criteria set forth in the legislation, effectively acting as a significant incentive for low- and middle-income families who may rely on public transportation or other non-motorized transit options.
Summary
House Bill 89, entitled the 'One Less Car Act of 2024,' proposes an income tax credit for individuals who do not own or lease a motor vehicle. The legislation aims to alleviate the financial burden on these individuals by providing a refundable credit against state income tax for qualified taxpayers who have demonstrated a lack of motor vehicle ownership for at least six months during the taxable year. This initiative aligns with the state’s broader climate objectives by incentivizing state residents to adopt more sustainable transportation choices, ultimately aiding in the reduction of greenhouse gas emissions.
Contention
However, the bill may not be without opposition. Critics argue that the income limitations set within the bill, capping eligibility for individuals at $75,000 and married couples at $150,000, may inadvertently exclude a substantial portion of the population who are already at risk of being overburdened by the cost of living. Furthermore, there are concerns regarding the fiscal sustainability of providing credits which could lead to gaps in state funding if a large number of taxpayers claim this incentive. Stakeholders in the public transportation sector may also debate the effectiveness of such tax incentives, questioning whether they would truly promote a substantive change in consumer behavior regarding vehicle ownership.