Earlier today (January 11, 2021) Governor Hogan announced that he will ask the 2021 state legislature to approve a $1 billion tax relief package designed to give direct payments to eligible low- and moderate-income Maryland taxpayers and tax credits to small businesses.
Called the Relief Act of 2021, here are some key points:
$267 Million Stimulus payments
Up to $450 for individuals and up to $750 for families, and is tied to those taxpayers eligible for the earned income tax credit in 2019
$180 Million Unemployment Tax Relief
Eliminating state and local income taxes on unemployment benefits
$300 Small Business Tax Relief
Sales tax credits for small businesses for up to four months.
Additionally, Governor Hogan wants to put his previous executive order preventing an increase to employer unemployment tax rates into law, as well as excluding state loan and grants from taxable income to businesses that participated in the Maryland state loan and grant programs.
The 2021 Maryland legislature convenes Wednesday, January 13 and Governor Hogan has stressed that this emergency bill needs to be passed immediately so the money can get into the hands of struggling Maryland individuals and small businesses.