In addition to the federal EITC, state-level EITCs can make more money available to lower-income workers while demonstrating a state’s commitment to reducing poverty among working families. Most states with state EITCs set their benefit as a percentage of the federal credit, making them easy to administer. Nearly all state EITCs are “refundable,” making them available to workers even if they do not owe state income taxes.
For more information on state EITCs or starting an EITC in your state, see the following Center on Budget and Policy Priorities reports:
- How Much Would a State Earned Income Tax Credit Cost in Fiscal Year 2015?
- States Can Adopt or Expand Earned Income Tax Credits to Build a Stronger Future Economy
- A Hand Up: How State Earned Income Tax Credits Help Working Families Escape Poverty in 2011