MarylandHB 07352026 Regular SessionHouseWALLET

Earned Income Tax Credit - Assistance Program Implementation Delay and Study

Sponsored By: Julie Palakovich Carr (Democratic)

Signed by Governor

Taxes - IncomeAdministrative AgenciesAwareness and OutreachCommunications -see also- ElecComm; Intergov; etc.ComptrollerData -see also- Census; DemographicsDemographics -see also- Census; DataFederal GovernmentIncome TaxIntergovernmental Cooperation -see also- AdmAgn; Cmts; etc.Low-IncomeNoticesPrivacyReportsSocial Services -see also- Public BenefitsStudies -see also- Commitees & Commissions; ReportsSunsetTax CreditsTax ReturnsTimeWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Easier Maryland EITC refunds for workers

The law creates a state program to find residents who missed the Maryland Earned Income Tax Credit and send a simple claim form. It takes effect July 1, 2026 and applies to tax years beginning after December 31, 2029. The Comptroller mails the form when they have your federal return and employer‑reported wages, see you may qualify, and you did not claim. They must send it at least 45 days before the refund deadline, and you must return it by the date in the notice. If you use the form, the Comptroller computes your taxes as if you used the Maryland standard deduction. Notices explain the program, that joining is optional, filing rules, the return deadline, and that you may also be eligible for the federal EITC in a later year. On your request, a tax collector waives penalties and interest on any assessment from the form unless you likely knew of a mistake.

Maryland EITC law extended to 2035

The law keeps the 2022 Maryland EITC changes in effect through December 31, 2035. This avoids a 2030 sunset. It preserves access to the state credit under those rules for eligible low‑income workers until that date. The extension took effect October 1, 2022.

Sponsors & Cosponsors

Sponsor

Julie Palakovich Carr
Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 165 • No: 0

Senate vote • 4/8/2026

Third Reading Passed

Yes: 43 • No: 0 • Other: 2

House vote • 3/6/2026