Governor Larry Hogan today introduced the RELIEF Act of 2021, an emergency legislative package that will provide more than $1 billion in direct stimulus and tax relief for Maryland working families, small businesses, and those who have lost their jobs as a result of the COVID-19 pandemic. This legislation builds on the more than $700 million in emergency economic relief that has already been provided.

From the Governor’s press release, The Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families Act (RELIEF Act of 2021)  includes the following economic stimulus and tax relief:

  • Provides direct stimulus payments for low-to-moderate income Marylanders, with benefits of up to $750 for families and $450 for individuals. This relief begins with immediate payments of $500 for families and $300 for individuals who filed for the Earned Income Tax Credit, followed by a second-round stimulus for EITC filers that would provide an additional $250 for eligible families and $150 for individuals. This relief will directly help more than 400,000 Marylanders. Similar to federal stimulus payments, no application for relief is necessary. ($270 million)
  • Repeals all state and local income taxes on unemployment benefits, providing further support and assistance for Marylanders who have lost their jobs. ($180 million)
  • Supports small businesses with sales tax credits of up to $3,000 per month for four months— for a total of up to $12,000—freeing-up much needed resources to protect payrolls and sustain operations. This relief will directly help more than 55,000 Maryland small businesses. ($300 million)
  • Extends unemployment tax relief for small businesses, staving off sudden and substantial tax hikes in 2021. This provision codifies an emergency order the governor issued last month. ($218 million)
  • Safeguards Maryland businesses against any tax increase triggered by the use of state loan or grant funds. ($40 million)

The RELIEF Act, which will be introduced as emergency legislation, is funded through the remaining surplus at the end of Fiscal Year 2020, difficult budget reductions, and a small portion of the state’s Rainy Day Fund.

Summary of Bill

Watch today’s press conference
View the slides from today’s press conference

Additional coverage can be found in The Baltimore Sun and The Daily Record (subscription may be required).