Thursday, May 19, 2011

Connecticut Legislature Passes State Earned Income Tax Credit (EITC)

Earlier this month, the Connecticut legislature passed the state’s FY2012 budget, which included the governor’s proposal to create a refundable state Earned Income Tax Credit calculated at 30 percent of the federal credit. According to Tax Credits for Working Families, an estimated 190,000 low-income tax filers would be eligible in Connecticut, and the credit would cost the state $108 million in the first year of the two-year budget and $111 million in the second year.

Led by the Connecticut Association for Human Services and other advocates, a broad coalition has fought for several years to create a state EITC. State EITC legislation nearly passed during the 2006, 2007, and 2008 legislative sessions. The credit was included in this year’s budget to ensure that the revenue increases did not unduly burden low- and moderate-income working families.

Twenty-three states and the District of Columbia currently have a state EITC. The passage of a Connecticut EITC demonstrates that states can enact or expand tax credits for working families even in tight budget times.

Check out Tax Credits for Working Families’ 50-State Resource Map to find information about states’ Earned Income Tax Credit, Child Tax Credit, Child and Dependent Care Credit and other tax credits, as well as news and resources related to states’ efforts to enact these credits.

Visit PolicyForResults for more information about enacting or expanding an EITC in your state and other strategies for reducing child poverty.

No comments:

Post a Comment