Six of the 29 states (plus the District of Columbia and Puerto Rico) with Earned Income Tax Credits (EITCs) are expanding them this year, which will help low-paid workers and their families meet basic needs. (See map.) These expansions will supplement the federal EITC’s well-documented, long-term benefits for children, improve racial and gender equity, and boost the nation’s economic prospects. These state actions come as four senators have proposed, and 42 others have signed onto, a major expansion of the federal EITC, which would help 46 million households and lower child poverty.
The following states expanded EITCs in 2019:
Some states strengthened other tax credits that help families earning low wages make ends meet. Arizona and Illinois created a new Child Tax Credit worth $100 per family (Illinois’ requires voter approval). And Maryland made its Child and Dependent Care Credit refundable for families with incomes of $50,000 or less ($75,000 for married filers) and increased the credit amount and income limits, enabling an estimated 90,000 more families to qualify.