On February 11, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 363 – Income Tax – Local Child Tax Credit – Authorization. This bill authorizes counties to offer a local child tax credit against the county income tax for very low-income families.
The bill focuses on families with extremely low income. Eligibility is limited to families with federal adjusted gross incomes below $15,000, directing relief to residents facing the most acute financial strain, while limiting the fiscal exposure for counties that choose to participate.
The bill mirrors the structure of Maryland’s existing State child tax credit but keeps all decisions local. Counties would decide whether to offer the credit, set its amount, and determine whether it is refundable. Counties could tailor the credit to local priorities and fiscal capacity, rather than applying a statewide mandate that affects county revenue without local input.
Counties continue to face growing fiscal pressure from education, infrastructure, public safety, and employee costs. At the same time, counties operate with limited tools to respond to changing community needs. HB 363 provides a targeted, locally driven option that counties may adopt when it aligns with local goals and fiscal capacity.
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