Maryland SB377 modifies the earned income tax credit for individuals without qualifying children by adjusting income thresholds and phase-out amounts.

Maryland SB377 amends the earned income tax credit for individuals without qualifying children by altering the income thresholds at which the credit phases out. The bill specifies that after a certain taxable year, the income threshold and phase-out amounts are adjusted annually for inflation. It also provides that the credit allowed against the state income tax is the lesser of 50% of the federal earned income credit or the state income tax for the taxable year. The changes take effect July 1, 2026, and apply to all taxable years beginning after December 31, 2025.

Maryland SB377 modifies the earned income tax credit for individuals without qualifying children by adjusting income thresholds and phase-out amounts.

Maryland SB377 amends the earned income tax credit for individuals without qualifying children by altering the income thresholds at which the credit phases out. The bill specifies that after a certain taxable year, the income threshold and phase-out amounts are adjusted annually for inflation. It also provides that the credit allowed against the state income tax is the lesser of 50% of the federal earned income credit or the state income tax for the taxable year. The changes take effect July 1, 2026, and apply to all taxable years beginning after December 31, 2025.