Historic Tax Cut Package

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Update from Alonzo T. Washington, Maryland State Delegate

As the Vice Chair of the House Ways and Means Committee, I have been working hard to respond to constituent requests to provide significant tax relief for seniors, retirees, and families. The Maryland House of Delegates has passed a historic package of legislation from the House Ways and Means Committee that will deliver over $2 Billion in tax savings to Maryland residents.

The tax relief package includes the following bills:

  • HB 1468 – Tax Relief For Seniors ($1.55 billion) – I know that our Seniors have worked hard to achieve a comfortable retirement. In order to better protect their retirement income, I worked to provide a nonrefundable tax break for Marylanders ages 65 and up. Beginning next year, seniors who earn up to $100,000 per year can receive up to $1,000 in tax cuts, or up to $1,750 for senior couples who earn no more than $150,000.  
  • HB 2 – Work Opportunity Tax Credit ($195 million) – Over the course of the pandemic, thousands of Maryland residents in underserved communities lost their job or have struggled to find work. To help get our neighbors back on their feet, this legislation incentivizes employers and businesses to hire and retain workers from underserved communities. The bill will create a state match for the federal Work Opportunity Tax Credit — a benefit offered to employers who hire individuals with significant barriers to employment, like SNAP and TANF recipients.
  • Family Budget Boosters Package ($115.6 million) – With the cost of essential goods and services rising over the past year, many families have struggled to make ends meet. To help provide some financial relief, this package of bills repeal the sales tax on many common items that families need, including diapers, car seats, and baby bottles, and baby wipes. It also exempts critical health products such as dental hygiene products, medical devices, and diabetic care products.

Combined with our recent suspension of the gas tax, these savings add up to over $2 Billion for taxpayers over the next five years.