The Latest Maryland Tax Relief Package aims to help Families, Small Businesses, and Retirees with additional tax savings and stimulus.

1/12/2022

The Working Marylanders Tax Relief Act of 2022 will be the largest Tax Relief Package In State History (if it becomes law). Some of the key provisions include:

eliminating 100% of State Retirement Taxes,
an additional $650 Million in Tax Relief for families,
eliminating the $300 filing fees for businesses (SDAT),
extended tax incentives to new and existing manufacturers that locate or expand in Maryland and create new manufacturing jobs, and
initiatives to revitalize vacant retail and commercial space.

Currently, this is a proposed legislation and not yet law so specifics are limited. However, all but the SDAT savings & retirement tax relief are added benefits to existing programs that were enacted in response to the pandemic. Thus the rules, benefits, and limits of these programs are expected to be similar.

Link to Blog Post: ramlcpa.link/01-12a

The Retirement Tax Reduction Act

The Retirement Tax Reduction Act eliminates 100% of state retirement tax in Maryland. Tax relief will be phased-in starting in 2022.

The Working Marylanders' Tax Relief Act

Permanent tax relief for working families. The Working Marylanders' Tax Relief Act will make the enhanced earned income tax credits (EITC) permanent and provide another $650 million in tax relief for working families.

Link: interactive2.marylandtaxes.gov/EITCAssistant/

Link: Maryland EITC resource

Maryland Earned Income Tax Credit (EITC) Assistant - Calculator

Clickable Image of the Maryland (EITC) Calculator

Maryland Earned Income Tax Credit (EITC) - 2021 Thresholds

Clickable Image Maryland (EITC) - 2021 Thresholds

Small Business Tax Relief

Small Business Fee Relief. The governor will also propose legislation to eliminate the filing fees for businesses that submit their annual report (SDAT), including the $300 annual filing fee for companies, LLCs, and other legal entities. This would make Maryland the first state to provide a zero-fee option for all businesses.

The More Jobs for Marylanders Act 3.0

Expansion of Manufacturing Incentives. The More Jobs for Marylanders Act 3.0 extends the program an additional five years, through 2027 and provides tax incentives to new and existing manufacturers that locate or expand in Maryland and create new manufacturing jobs and to non-manufacturers that locate or expand in Maryland Opportunity Zones.

Project Restore Act

Long-Term Economic Development. The Project Restore Act makes permanent initiatives, which provide financial assistance for small businesses and commercial developers to revitalize vacant retail and commercial space.