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Tax credits would assist families with modest incomes, public school employees, those on fixed incomes and seniors
Councilmember Kate Stewart introduced three bills today, along with current and former Government Operations and Fiscal Policy Committee colleagues, that would expand tax credit options to homeowners, public school employees and families with modest incomes.
Bill 47-26, introduced by Councilmembers Stewart, Shebra Evans, Andrew Friedson and Sidney Katz, would expand eligibility for the County’s supplement to the Homeowners’ Tax Credit (HOTC). The proposed legislation would increase the maximum household gross income from $75,000 to $106,800 to align with the U.S. Department of Housing and Urban Development’s Area Median Family Income values for Montgomery County.
The purpose of the tax credit is to make homeownership more accessible to working families and help older residents on fixed incomes remain in their homes. Today’s proposal builds on legislation introduced by the Government Operations and Fiscal Policy Committee and passed by the Council in 2025 to widen the eligibility for HOTC.
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“We want our neighbors to be able to age in place and make sure we are expanding the opportunities for working people to become first-time homeowners. This policy does both,” said Councilmember Stewart, chair of the Government Operations and Fiscal Policy Committee.
“Our residents continue to face an affordability crisis which especially impacts seniors on fixed incomes and households with low and moderate incomes,” said Councilmember Friedson. “By aligning eligibility for the HOTC County supplement with the U.S. Department of Housing and Urban Development’s median family income standard, the residents who need relief the most can access this crucial tool for establishing and maintaining homeownership.”
“Buying a home gives people a permanent sense of belonging. It’s where they raise their families, put down roots, and build a life,” said Councilmember Evans. “But we also know that owning a home comes with a lot of costs. Bill 47-26 provides additional support and some meaningful relief for both first time homebuyers as well as those choosing to stay in the homes and communities they worked hard for in their later years. This benefits all Montgomery County residents.”
“The HOTC and county supplement are vital tools to keep people in their homes, especially with the rising cost of living,” said Councilmember Sidney Katz, who serves on the Government Operations and Fiscal Policy Committee. “By raising the income limit, we can make sure that more working families and older adults are able to qualify for the help they need. It’s a smart way to give more residents what they need to keep our communities thriving and inclusive.”
The second measure, led by Councilmember Stewart, would grant a property tax credit for Montgomery County Public Schools (MCPS) employees. Bill 48-26 would add certain MCPS employees to the $2,500 property tax credit that the County currently extends to certain County first responders. The legislation aims to enable more public school employees to afford to live in the County where they work.
“As we work to address the housing affordability crisis in the County, extending targeted property tax credits to those who work in our school system will benefit our schools and our families while fostering deeper bonds across our entire community,” Stewart said.
The third measure, Bill 46-26, led by Councilmembers Stewart and Evans, would establish a child tax credit in Montgomery County, as authorized during the 2026 Maryland General Assembly session through House Bill 363. Under Bill 46-26, a taxpayer with a federal adjusted gross income of $15,000 or less could claim a $500 credit against the County income tax for each qualified child. If a taxpayer’s income exceeds the $15,000 income limit, the credit would be reduced by $50 for each $1,000 that surpasses the threshold.
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“Child tax credits are a proven tool for reducing poverty. We are facing an affordability crisis, and raising a family can be costly, especially in jurisdictions like Montgomery County. Research consistently shows that child tax credits for families with modest incomes are some of the best tools available to assist them in becoming financially stable,” Stewart said.
“Bill 46-26 offers another tool to support our most vulnerable populations,” said Councilmember Evans. “As leaders, it’s our responsibility to provide policy solutions that meet families where they are and create communities where all children thrive. Bill 46-26 provides an innovative tool that works along with the Children’s Tax Credit and the EITC from the state, in addition to the County Working Families Income Supplement. I’m proud to co-lead this legislation because when we invest in families, we invest in the future of Montgomery County. When our children thrive, our whole community thrives.”
Public hearings for all three bills are scheduled for Oct. 13.
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Read the original article at mcgov
