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.
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.
|Temporary Disability Assistance Program||22|
|Business and Non-profit Assistance|
|Grants to Businesses that do Not Collect Sales Tax||10|
|Grants to Nonprofits||20|
|Entertainment Venue Assistance||10|
|Grants via MSBDFA/SMWOBA||10|
|Local Workforce Development Boards||7|
|Transition to Online Sales and Encourage Telework||0.5|
|TEDCO – Rural and Agricultural Business Grants||1.5|
|Small Business Marketing – Tourism||1|
|MDOT – Transit ($10 M) and Highways ($10 M)||20|
|Aid to Commuter and Shuttle Bus Operators||8|
|$1,000 Grants for UI Applications in Adjudication||32|
|Additional UI Caseworkers||3|
|Reduce Health Disparities||14|
|Housing Debt/Emergency Housing||15|
|Maryland Legal Services Corporation||3|
|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|
|Volunteer Fire Companies||4|
|Increase REIC: all claimants (45%)||265|
|Increase EIC – no children 100% refundable||54|
|Sales Tax Vendor||186|
|Total Impact on Budget||1272|