A pair of new briefs from the Institute on Taxation and Economic Policy (ITEP) illustrate the growing power of state Earned Income Tax Credits (EITCs) and Child Tax Credits (CTCs).
In all, we find:
- Nearly two-thirds of states (31 plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit (EITC). These credits boost low-paid workers’ incomes and offset some of the taxes they pay, helping lower-income families achieve greater economic security.
- Fifteen states provide Child Tax Credits to reduce poverty, boost economic security, and invest in children (11 of these credits are fully refundable).
- States across the country have acted to create or improve these credits in the wake of the federal EITC and CTC expansions in 2021 as part of the American Rescue Plan Act.
Read the full briefs here:
