A bill that Gov. Wes Moore signed into law on Tuesday will permanently increase and broaden Maryland’s earned income tax credit for low-income residents as well as expand the eligibility for the state’s child tax credit.
Gov. Wes Moore signed into law on Tuesday will permanently increase and broaden Maryland’s earned income tax credit for low-income residents as well as expand the eligibility for the state’s child tax credit. (Photo: CNBC)
Legislative Signed Two Bills That Will Extend Temporary Increase To Income Tax Credit
Tuesday, Moore and other legislative leaders signed two bills into law that will indefinitely extend the temporary increases to the earned income tax credit enacted in 2021. For some low- and moderate-income residents, the earned income tax credit offers a credit against state income tax and against local income tax.
The bill also expands the state’s child tax credit, allowing individuals earning $15,000 or less per year to claim a $500 tax credit for each child under the age of six. Previously, low-income taxpayers earning $6,000 or less with disabled children under the age of 17 could claim a $500 credit for each qualified child for the 2020 through 2022 tax years.
Moore praised the bills as a means of combating poverty across the state, reiterating a promise he made upon taking office to end child poverty. The operating budget approved by the legislature earlier this month includes approximately $200 million for tax relief, including funds for the expansion of the earned income tax credit and the child tax credit.
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Expanding Income Tax Credit And Child Tax Credit Will Aid Poverty
“This is a historic tax cut for working families in Maryland,” Moore said during the bill signing on Tuesday. “It addresses the root causes of child poverty, and these two programs will help at least 34,000 Maryland children move up the economic ladder.”
The Maryland General Assembly adjourned its 90-day legislative session just before midnight Monday. This session, lawmakers sent over 800 bills to Moore’s desk, including a package of reproductive rights bills backed by the governor’s administration.
According to the governor, 126,000 Maryland children live in households where the primary breadwinner earns less than $15 per hour.
Moore also signed the Child Victims Act, which repeals the state’s statute of limitations in certain civil actions involving child sexual abuse, into law on Tuesday. The state recognized a statute of limitations defense in civil cases under existing Maryland law, which limited victims of child sexual abuse from seeking justice if they were over the age of 38.
The bill was signed after a report detailing alleged child sexual abuse by Archdiocese of Baltimore members was released last week. The report summarized the findings of a four-year investigation by the Maryland Attorney General’s office, which discovered that 156 clergy and others associated with the church are accused of sexually abusing more than 600 children over a 60-year period.
Moore stated before signing the bill on Tuesday that it “addresses a big gap between justice and our legal system because there is no statute of limitations on the pain that these victims continue to feel.”
