Maryland lawmakers are considering Senate Bill 552, which would permanently extend and expand the state’s Earned Income Tax Credit (EITC) and broaden eligibility for the state’s Child Tax Credit (CTC). Advocates of the bill believe it could help reduce poverty in the state.
If passed, the bill would make permanent the temporary expansions to the Maryland EITC that were enacted during the 2021 session. This includes permanently increasing the value of the state’s refundable credit from 28% to 45% of the federal earned income credit, as well as eliminating the $530 limit on the credit for qualified individuals without children.
SB 552 would also expand Maryland’s CTC by broadening eligibility to taxpayers with federal adjusted gross income of up to $15,000. The definition of “qualified child” would also be expanded to include children under age six, regardless of disability status.
The bill is supported by Democratic Gov. Wes Moore’s administration, who pledged to end child poverty during his State of the State address. Lt. Gov. Aruna Miller spoke in support of the bill to a panel of Maryland lawmakers, stating that Maryland’s expanded EITC helped more than 400,000 families in the state and that the state “should make that commitment permanent.”
Several groups, including the CASH Campaign of Maryland, the Maryland Food Bank, and the SEIU Local 500, testified in support of the bill, arguing that it provides an important tool to address poverty in the state.
If the law is passed by the General Assembly and signed by the governor, it would go into effect on June 1.