Local Government - Grant for Recipients of State Child Tax Credit - Authorization
HB0363 authorizes Maryland counties to create their own local grant or county income tax credit for taxpayers who receive the State child tax credit for qualified children. The bill applies to low-income taxpayers with federal adjusted gross income below $15,000 and requires the taxpayer and each qualified child to be county residents, with residency defined by domicile or maintaining a principal residence or place of abode in the county. The local benefit is tied to the State child tax credit framework and is designed to extend similar relief at the county level for eligible families.
The bill also sets the structure counties must follow if they choose to adopt the credit or grant. For county-level benefits, the amount is reduced by $50 for each $1,000 of income above the threshold, and counties may decide the amount of the credit or grant and whether any excess credit may be refunded. Counties that adopt the credit must notify the Comptroller by July 1 before the first taxable year it applies, and they must reimburse the Comptroller for reasonable administrative expenses needed to implement the program. The act takes effect June 1, 2026, and applies to taxable years beginning after December 31, 2026.
HB0363 amends the Tax-General Article to expressly allow a county income tax credit tied to the State child tax credit and adds a new Local Government provision authorizing counties to provide grants to eligible recipients. It also updates related income tax refund provisions so that county-level credits can be claimed where authorized, and clarifies the interaction between State and county tax credits for qualified children. The bill does not require counties to adopt the credit; it creates optional local authority and establishes administrative conditions for implementation.
The available record shows the bill was enacted and approved by the Governor, indicating overall legislative support. Because there are no committee transcripts or recorded votes included, there is no documented floor or committee debate in the provided materials. The bill’s structure suggests it was viewed as a targeted tax-relief measure for low-income families with children, with a permissive local option rather than a statewide mandate.
No specific points of contention are documented in the provided context. The main policy choice embedded in the bill is whether counties should have discretion to offer the benefit and whether they should be able to make it refundable, which could raise local fiscal concerns. Administrative burden and reimbursement of Comptroller expenses are also notable implementation issues, but no opposition or competing viewpoints are recorded in the supplied materials.