§ 10-709

# (a)

# (1)

In this section the following words have the meanings indicated.

# (2)

“Applicable poverty income level” means the amount specified in the poverty income standard that corresponds to the number of exemptions which the individual is allowed and claims under § 10–211(b)(1) of this title.

# (3)

“Eligible low income taxpayer” means an individual, or an individual and the individual’s spouse if they file a joint income tax return:

(i) whose federal adjusted gross income as modified under §§ 10–204 through 10–206 of this title does not exceed the applicable poverty income level;

(ii) whose earned income as defined under § 32(c)(2) of the Internal Revenue Code does not exceed the applicable poverty income level;

(iii) who is not claimed as an exemption on another individual’s tax return under § 10–211 of this title; and

(iv) for whom the credit allowed under § 10–704(a)(1) of this subtitle is less than the State income tax.

# (4)

“Poverty income standard” means the most recent poverty income guideline published by the United States Department of Health and Human Services, available as of July 1 of the taxable year.

# (b)

# (1)

An eligible low income taxpayer may claim a credit against the State income tax for a taxable year in the amount determined under subsection (c) of this section.

# (2)

An eligible low income taxpayer may claim a credit against the county income tax for a taxable year in the amount determined under subsection (d) of this section.

# (c)

Except as provided in subsection (e) of this section, the credit allowed against the State income tax under subsection (b)(1) of this section equals the lesser of:

# (1)

the State income tax determined after subtracting the credit allowed under § 10–704(b)(1) of this subtitle; or

# (2)

an amount equal to 5% of the eligible low income taxpayer’s earned income, as defined under § 32(c)(2) of the Internal Revenue Code.

# (d)

Except as provided in subsection (e) of this section, the credit allowed against the county income tax under subsection (b)(2) of this section equals the lesser of:

# (1)

the county income tax determined after subtracting the credit allowed under § 10–704(d) of this subtitle; or

# (2)

an amount equal to the county income tax rate multiplied times the eligible low income taxpayer’s earned income, as defined under § 32(c)(2) of the Internal Revenue Code.

# (e)

Of the amount determined under subsection (c) or subsection (d) of this section, an individual who is a nonresident or is a resident of the State for only a part of the year is allowed only a fraction:

# (1)

the numerator of which is the individual’s Maryland adjusted gross income; and

# (2)

the denominator of which is the individual’s federal adjusted gross income.