Bill Positions

Bill Number: SB 638

Bill Title: Earned Income Credit Information Act

Bill Sponsor(s): Senator Madaleno, et al

Subject: Budget & Taxation

Committee: B&T

Bill Summary: This bill would require the Comptroller to annually publish the maximum income eligibility for the state earned income tax credit and prepare a notice advising employees of the state and federal credit. Employers would be required to provide a copy of the notice by January 1st, electronically or in writing, to each employee who may be eligible for the credit or to all employees.

History: In 2009 HB 1061 passed the House and received a favorable report from the Budget & Taxation Committee, but failed to reach 3rd reading before the Senate adjourned.

Chamber Position: Oppose

Position Summary: This bill is unlikely to achieve its objective of notifying employees of the earned income tax credit, while creating unnecessary burdens for employers. Individuals may qualify for the earned income tax credit based on several factors, including their adjusted gross income, filing status, and number of qualifying children. Employers know none of those factors and could not reasonably estimate which of their employees may be eligible for the credit. Eligibility for the credit also varies by county, as the local income tax rate is a factor in the calculation, posing additional complexity for businesses whose employees live in multiple counties. The Comptroller's Office has advised that they will only post the required information on their website, and will not individually notify employers of this new requirement. Without any notice from the Comptroller, employers would not be aware of this new mandate. Tax advice is better provided to individuals by the Comptroller's office.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.