Earned Income Tax Credit - Assistance Program Implementation Delay and Study
Summary
SB0519 delays the start of Maryland’s Earned Income Tax Credit Assistance Program for Low-Income Families from tax years beginning after December 31, 2024, to tax years beginning after December 31, 2029. The program is designed to help eligible residents who failed to claim the State earned income tax credit by having the Comptroller identify likely eligible taxpayers and provide them with a streamlined form to claim the credit. The bill also preserves the program’s structure, including notice requirements, optional participation, waiver authority for penalties and interest in certain cases, and ongoing reporting and regulatory duties.
In addition to delaying implementation, the bill requires the Comptroller’s Office to study and recommend ways to improve outreach so more eligible taxpayers claim the State earned income tax credit. It also directs the Department of Service and Civic Innovation to study how Maryland Corps participants could help low-income Marylanders claim the earned income tax credit and other family-serving tax credits and public benefits. The bill extends the sunset dates for the 2022 laws that created the outreach and assistance framework, pushing their expiration from the end of 2030 to the end of 2035.
Impact
The bill amends § 2-116 of the Tax-General Article and related provisions in Chapters 110 and 111 of the Acts of 2022. Its main legal effect is to postpone the operational date of the Earned Income Tax Credit Assistance Program by five years, while extending the life of the underlying 2022 enactments so the program can continue through 2035. It also adds new study and reporting obligations for the Comptroller’s Office and the Department of Service and Civic Innovation, affecting how the State administers outreach, data use, and assistance related to the earned income tax credit.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the Senate 42-0 and the House 128-0, indicating unanimous approval in both chambers. The absence of recorded committee transcript debate suggests the measure was viewed as a technical or administrative adjustment rather than a contested policy change.
Contention
No major points of contention are evident in the available record. The bill’s delay of implementation could have been a concern for advocates who wanted the assistance program available sooner, but the unanimous votes suggest no organized opposition surfaced during passage. The study provisions reflect some policy interest in outreach methods, privacy concerns, data sharing, and the role of Maryland Corps, but those issues were addressed through reporting requirements rather than through visible legislative conflict.