June 28, 2023

State Action on Child Tax Credits and Earned Income Tax Credits in 2023


Updated October 10, 2023

Child Tax Credit

State Child Tax Credits (CTCs) are highly effective tools that states can employ to bolster the economic security of low- and middle-income families and position the next generation for success. Fourteen states offer some form of a CTC. The momentum around these poverty-fighting credits remains strong. In 2023 alone, a dozen states prioritized children and families through improvements to existing credits, a new credit, or a one-time child rebate.

Earned Income Tax Credit

State Earned Income Tax Credits (EITCs) boost low-paid workers’ incomes and offset some of the taxes they pay, providing the opportunity for lower-income families to move toward meaningful economic security. To date, nearly two-thirds of states (31 plus the District of Columbia and Puerto Rico) offer an EITC. And in 2023, 13 states prioritized low- and moderate-income workers by improving their EITCs.