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Hogan Unveils COVID Economic Relief Proposal, Including Small Business Tax Cuts and Income Tax Credits

January 11th, 2021 by WCBC Radio

Maryland Gov. Larry Hogan on Monday announced his top legislative priority for the year, the $1 billion "Recovery for the Economy, Livelihoods, Industries, Entrepreneurs and Families (RELIEF) Act of 2021," which will include tax cuts and an income tax credit to help Maryland families, individuals, the unemployed and small businesses impacted by the COVID-19 pandemic. The measure must be aprroved by the legislature before it can go into effect.

This income tax credit would include $750 for families who applied for the Earned Income Tax Credit and $450 for individuals. No application is needed and the credit will be in addition to the federal stimulus check. The RELIEF Act repeals state and local income taxes on unemployment benefits.

Payments will go to low-to-moderate income Marylanders, meaning families who make less than $57,000. The relief will be broken up into two rounds, with the first checks going out when the RELIEF ACT becomes law.

The proposal also extends unemployment tax relief for small businesses and stops any tax hikes in 2021.

Hogan said the RELIEF Act will be introduced as emergency legislation, so that checks can go out immediately.