Maryland’s RELIEF Act signed into law
The Maryland Legislature passed Governor Larry Hogan’s Maryland RELIEF Act of 2021 this past Friday and the bill was signed into law on Monday, February 15. The relief package will bring more than $1 billion in tax relief and economic aid to Maryland residents and small businesses.
The final bill includes:
Economic Impact Payments – eligible individuals would receive an economic impact payment of $300. Spouses, surviving spouses, and head of household filers will receive $500 if eligible.
Unemployment Benefits – Non-taxable: Unemployment benefits would be non-taxable for state purposes for individuals earning less than $75,000 and married joint filers, heads of households, and surviving spouses earning less than $100,000.
Covid Relief Payments on loans and grants applied after March 5, 2020 would be non-taxable
Enhanced State Refundable Earned Income Credit – for years 2020 – 2022, the refund percentage of the federal EITC is increased from 28% to 45%
Sales/Use Tax Discount – The Act provides a credit against sales/use tax for March, April, and May 2021. The credit is equal to the lessor of $3,000 or the sales tax collected during the month of qualification.
Unemployment Contributions – The Act adjusts certain business’ calculation of unemployment contributions.
EPIP Loan Forgiveness – loans from the Equity Participation Investment Program would be converted to grants. Loans provided under the program during 2021 and 2022 are eligible for forgiveness.
More information on the Relief Act can be found here: https://www.marylandtaxes.gov/RELIEFAct/docs/2.16.21-748am-RELIEF-Act-Tax-Alert.pdf?campaign=365
We will keep you updated on these and other relevant matters