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