STATE EARNED INCOME TAX CREDITS COULD GROW THIS YEAR

Governors on both sides of the aisle have proposed instituting earned income tax credits in their states this year or expanding existing credits. Four states are looking to create new state credits, five to expand, according to the National Conference of State Legislatures.  Proponents of state credits assert:

▪      Help working families make ends meet 

▪      Keep families working. 

▪      Reduce poverty, especially among children. 

▪      Have a lasting effect. 

Over 200,000 Connecticut residents benefited from the state’s EITC between 2010 and 2012, receiving $2,075, on average. The credit kept nearly 50,000 people out of poverty in those 3 years. Connecticut’s EITC offers taxpayers a credit equal to 25% of their federal EITC.

Source: Pew Charitable Trust, 2/11/14, EITC; Center for Budget and Policy Priorities, 2/11/14, EITC II