Income Tax - Credit for Individuals Residing With and Caring for Elderly Parents

SB 104 creates a $3,000 refundable state income tax credit for Maryland residents who live with and provide care for a parent aged 70 or older for at least six months during the tax year. To qualify, individuals must not be claimed as dependents by another taxpayer, meet income limits ($103,650 for single filers or $161,000 for joint filers), and provide care. The credit is refundable, meaning taxpayers can receive cash back if the credit exceeds their state tax liability. Starting in 2026, income thresholds will adjust annually for inflation based on federal cost-of-living measures. The bill applies to taxable years beginning after December 31, 2024, and takes effect July 1, 2025.