MD HB614

Clarifies how the county income tax rate is determined when calculating Maryland's local earned income tax credit, defining "applicable county income tax rate" as a new statutory term

For counties with marginal tax rates, the lowest marginal income tax rate for the taxable year must be used in the credit calculation

For counties with flat income tax rates, the rate applicable to the taxpayer's specific income level and filing status as established by the county applies

Replaces previous ambiguous language referencing simply the "county's lowest marginal income tax rate" with the new "applicable county income tax rate" definition throughout the credit calculation formula

Takes effect July 1, 2025, and applies to all taxable years beginning after December 31, 2024