The House of Delegates voted to pass the Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families (RELIEF) Act this afternoon, providing financial relief to those in need. It is a historic step with the bipartisan passage of the, which provides over $1.5 billion in pandemic relief. The RELIEF Act will infuse the State’s economy with $509.0 million in spending and provide over $1.0 billion in tax relief and credits
This economic package includes direct stimulus, small business aid, grants to food banks and non-profits, energy assistance, $1000 payments to those who remain stuck in the unemployment system, and funding to hire unemployment claims personnel. This was passed with massive bipartisan support from the start, and I look forward to Governor Hogan signing it into law.
Facts:
Maryland becomes the highest state in the nation for its earned income tax credit, which puts cash in the pockets of low-income Maryland taxpayers. Specifically, the credit is raised to 45% of the federal credit amount – which will, on average, provide families with children up to $730 more for a total of nearly $1,700.
Maryland also raises its earned income tax credit for individuals with no children from nearly $100 to $530.
Unemployment insurance payments will be exempt from the State income tax, keeping over $225.0 million in the pockets of unemployed Marylanders.
Marylanders who qualified for the earned income tax credit in 2019 will be provided with stimulus payments of up to $500, putting over $175.0 million immediately in the hands low–income individuals and families.
Allows small businesses to keep sales tax collections of up to $9,000 over three months
Helps up to 100,000 small businesses & nonprofits to defer paying unemployment insurance taxes until the first three months of 2022 to help cash flow (they employ ¼ of MD workforce)
Layoffs will not impact an employer’s experience rating for FY20 and FY21
MD will take a low-interest loan from the federal government to replace payments to the UI Trust Fund
Forgives MD taxes on COVID loans and grants
Minority and Small Business Loans (MSBDFA): Converts up to $50,000 in Equity.
Speaker Jones and President Ferguson have committed to passing legislation next week to expand the Earned Income Tax Credit to ALL Maryland taxpayers – including taxpayers with an ITIN.
| Spending | |
| Human Services | |
| Temporary Disability Assistance Program | 22 |
| Food Banks | 10 |
| Utility Arrearages | 83 |
| Business and Non-profit Assistance | |
| Grants to Businesses that do Not Collect Sales Tax | 10 |
| Grants to Nonprofits | 20 |
| Restaurant Assistance | 22 |
| Arts Council | 5 |
| Hotel/Motel Assistance | 10 |
| Entertainment Venue Assistance | 10 |
| Grants via MSBDFA/SMWOBA | 10 |
| Local Workforce Development Boards | 7 |
| Rural Broadband | 2 |
| Main Streets | 2 |
| MARBIDCO | 2 |
| Transition to Online Sales and Encourage Telework | 0.5 |
| TEDCO – Rural and Agricultural Business Grants | 1.5 |
| Small Business Marketing – Tourism | 1 |
| Transportation | |
| MDOT – Transit ($10 M) and Highways ($10 M) | 20 |
| Aid to Commuter and Shuttle Bus Operators | 8 |
| Unemployment Insurance | |
| $1,000 Grants for UI Applications in Adjudication | 32 |
| Additional UI Caseworkers | 3 |
| Workshare Marketing | 1 |
| Health | |
| Behavioral Health | 20 |
| Reduce Health Disparities | 14 |
| DDA Providers | 5 |
| Housing | |
| Housing Debt/Emergency Housing | 15 |
| Maryland Legal Services Corporation | 3 |
| Education | |
| Community Colleges – Job Skills Training | 10 |
| Juvenile Services – Bolster Educational Services | 1 |
| Summer School and Tutoring (Blueprint Fund) | 50 |
| Delivery of In-person Education (Blueprint Fund) | 10 |
| Concentration of Poverty (Blueprint Fund) | 45 |
| Tutoring and Supplemental Instruction (Blueprint Fund) | 20 |
| Crisis Intervention/Mental Health (Blueprint Fund) | 25 |
| Other | |
| Volunteer Fire Companies | 4 |
| Disparity Grant | 5 |
| Total Spending | 509 |
| Tax Relief | |
| Repeal UI | 80 |
| Stimulus Payments | 178 |
| Increase REIC: all claimants (45%) | 265 |
| Increase EIC – no children 100% refundable | 54 |
| Sales Tax Vendor | 186 |
| Total Impact on Budget | 1272 |