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Policy Basics

Building on the federal Earned Income Tax Credit, we conceived the concept of state-level EITCs.

With our encouragement and assistance, about half of the states have enacted this tool, providing a total of $3 billion to help 9 million low-income working households make ends meet. State EITCs help such households offset state taxes that disproportionately burden low-income households. We work closely with members of the State Priorities Partnership to maintain and expand EITCs where they exist, and to bring them to more states.