Local Earned Income Tax Credit - Calculation - County Income Tax Rate

HB 614 clarifies how Maryland counties calculate a local earned income tax credit for low-to-moderate-income residents. It reduces the multiplier used to determine the credit amount from 10 times a county's lowest marginal income tax rate to 5 times. Counties that choose to offer a refundable local earned income tax credit must notify the Comptroller by July 1 prior to implementation, and residents can claim refunds if the credit exceeds their county income tax. The bill affects residents in counties adopting this refundable credit, with changes effective for taxable years beginning after December 31, 2024.