Montgomery Councilmember Kate Stewart Proposes Tax Credit Bills to Lower Cost of Living

Montgomery County Councilmember Kate Stewart outlined three targeted tax credit proposals during an interview with Montgomery Community Media ahead of a public press conference and hearings scheduled for October 13, 2026. The measures are designed to ease cost-of-living pressures for low-income families, seniors, fixed-income residents, and public school staff while shifting the county tax code toward a more progressive structure.

Child Tax Credit Targets Low-Income Families

Bill 46-26 would establish a local child tax credit aimed at households earning less than $25,000 annually. The proposed credit covers children under the age of six, as well as dependents under 17 who live with a disability. Stewart described these programs to Montgomery Community Media as the main strategies against poverty that we have at our disposal and noted that families typically spend the funds locally.

Homeownership Credits Adjust for Income Levels

Bill 47-26 expands the county supplement to the Homeowner’s Property Tax Credit by raising income eligibility thresholds in partnership with Habitat for Humanity. Stewart told Montgomery Community Media that if the income is lower, the higher the tax credit they receive. Under the sliding scale, a household earning $100,000 with a $500,000 home would receive a $395 credit, while a family earning $50,000 with a $250,000 home would receive $1,472. Prospective buyers can also secure pre-certification to assist with mortgage rate negotiations and closing costs.

Property Tax Relief Supports School Employees

Bill 48-26 proposes a $2,500 property tax credit for eligible Montgomery County Public Schools employees, including teachers, bus drivers, and cafeteria staff. Stewart stated that the initiative helps workers live in the community where they work and pairs with a governor-backed housing down-payment assistance program for educators. Community feedback has been largely favorable, particularly among senior residents seeking to age in place.

Public Hearings and Next Steps

Stewart will host a press conference on October 13, 2026, at 12:30 p.m. in the second-floor conference room of the Council Office Building, followed by public hearings on all three bills at 1:30 p.m. Application instructions will be published on the county website if the measures secure final approval and enactment.