Earned Income Tax Credit - Notice of Eligibility - Alteration
Summary
SB663 alters the notice requirement tied to Maryland’s earned income tax credit (EITC). Under current law, the Comptroller must prepare a notice about EITC eligibility and mail it to all employers in the State. This bill keeps that basic framework but expands the delivery method, allowing the Comptroller to provide the notice by mail or by electronic means. The notice must still inform employers that employees may be eligible for both the federal EITC and Maryland’s EITC.
The bill also preserves the existing employer notice obligation: by December 31 each year, employers must give electronic or written notice to employees who may qualify for the credit. Employers may provide the notice to all employees or only to employees whose wages are at or below the published income threshold. The bill does not create a private right of action, so employees still cannot sue an employer for failing to provide the notice. The act takes effect July 1, 2025.
Impact
SB663 makes a narrow administrative change to Maryland Tax-General § 10-913 by modernizing how the Comptroller distributes the annual EITC eligibility notice to employers. The amendment authorizes electronic delivery in addition to mailing, which may reduce administrative burden and improve efficiency while leaving the underlying employer notice duties and employee protections unchanged. It does not alter EITC eligibility rules, tax rates, or the substance of the credit itself.
Sentiment
The bill appears to have been noncontroversial and broadly supported. It passed the Senate 47-0 and the House 138-0, indicating unanimous approval in both chambers. The absence of committee transcript discussion also suggests the measure was viewed as a routine administrative update rather than a policy dispute.
Contention
There is little evidence of substantive contention around SB663. The only meaningful policy choice reflected in the bill is whether the Comptroller should be allowed to send the employer notice electronically instead of solely by mail, and the final version adopts both methods. Because the bill does not change eligibility standards or impose new penalties, there were no apparent disagreements over tax policy, employer obligations, or enforcement.