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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 households with low incomes make ends meet. State EITCs help such households offset state taxes that disproportionately burden households with low incomes. 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.