April 5, 2019

Senate Expands Maryland’s Childcare Tax Credit

Senators voted Friday to pass sweeping changes to expand Maryland’s childcare tax credit that has been unchanged for some twenty years. Senate Bill 870, from Senate Budget and Taxation Committee Chairwoman Nancy King (District 39 – Montgomery) increases funding for the credit, modernizes the credit, and benefits approximately 110,000 Marylanders who are currently struggling to pay for adequate child care. Currently the credit can only be claimed by those who make less than $50,000 per year, this legislation expands the credit to those individuals who make more than $50,000 but less than $143,000.

At a recent hearing for the legislation King stated: “Childcare costs for a family of four typically range from 16.1% to 29.7% of household income.” She followed: “Offering this credit to middle-income parents will allow them to place their children in safe, high-quality care.”

The legislation is identically cross-filed with House Bill 810 and sponsored by Delegate Ariana Kelly (District 16 – Montgomery County). Having also passed the Senate with Senate Bill 870, both pieces of legislation will now be sent to the Governor to either approve or veto. If a bill is presented to the Governor during the legislative session, the Governor has 6 days to sign the bill, veto it, or let it go into effect without his signature. The 2019 General Assembly Session adjourns at midnight on Tuesday, April 9th.