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Earned Income Tax Credit 2012-2009 Enactments

Last Updated: July 2012


Twenty-two states have enacted a state Earned Income Tax Credit (EITC) to provide low-income families and individuals.  State laws are usually based on a percentage of the federal EITC and can range from 4 percent to 40 percent of the federal law.  Other important state efforts include reaching out to eligible workers so they know about the EITC and how to file for it.  This table is a compilation of state EITC laws enacted through 2012. 

NCSL Publicatiions:


NCSL Contact:  Sheri Steisel, Senior Committee Director- Human Services, Washington D.C., 202-737-1069
                         Qiana Flores, Research Analyst II, Denver, 303-364-7700


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STATES
 2012-2009 ENACTMENTS

Arkansas

S.B. 470 (2009)
Creates the Legislative Taskforce on Reducing Poverty and Promoting Economic Opportunity. The taskforce will attempt to identify those in poverty and outline some of poverty's risk factors. It will also identify and assess strategies for reducing poverty, including a state EITC for low-income families.

Connecticut

S.B. 1239 (2011)
Establishes an EITC equal to 30 percent of the federal credit. State or federal EITC shall not be counted as income or resources when applying and determining eligibility for any other state or federal benefits or services based on need.

Delaware

H.B. 290 (2009)
Appropriates $48,000 for the "marketing" of the state and federal EITC. "Marketing" means educating people about the availability of the credit. Follows a proposal submitted by the treasurer of the state.

Hawaii H.B. 200 (2009)
Appropriates $198,000 to expand awareness of the federal EITC for low-income families in Honolulu county. 
Illinois S.B. 400 (2012)
Increases ETIC from 5% for 2012, to 7.5% for 2013, then to 10% of the federal tax credit after 2013.

Indiana

H.B. 1021 (2010)
Relates to bankruptcy exemptions and earned income tax credit; provides that a debtor's state and federal earned income tax credit is property that is exempt under the bankruptcy property exemption statute; concerns civil procedure.


H.B. 1198 (2009)
Provides an additional credit equal to nine percent (not the previously allowed six percent) of the federal EITC.

Iowa

S.B 2336 (2012) : Increases appropriations from $97,839 to $195,678 to provide tax preparation assistance to low-income Iowans to expand the usage of the earned income tax credit.


S.F. 209 (2011)
Increases the state EITC from seven percent to 10 percent of the federal credit. The bill makes appropriations to various community colleges.
Enacted 04/21/2011 – Line Item Veto by Governor


H.F. 811 (2009)
Appropriates $219,423 to an Iowa-based nonprofit that will assess and recommend various strategies for developing assets through savings. Also charges the nonprofit with expanding the usage of the federal EITC among low-income Iowans.

Kansas

H.B. 2360 (2010)
Kansas expanded the EITC from 17 percent to 18 percent of the federal credit for three years.

Louisiana

H.B. 1 (2009)
Describes, as a performance indicator, a 5% increase in applicants for the EITC. (This refers to applicants who filed through a tax assistance site affiliated with the Department of Social Services.) Appropriates $1.2 million to the Office of Family Support to increase the rate of application for the EITC among the TANF-eligible population in the state.

Maryland

H.B. 632 (2011)
Requires the Comptroller to publish information relating to eligibility for the state earned income tax credit and to prepare and mail to all employers in the state a related notice; requires an employer to provide notification to an employee who may be eligible for the credit; provides that an employee may not pursue a private cause of action for the employer's failure to provide the notice.
Michigan

H.B. 4361 (2011)

Decreases the credit from 20 percent to 6 percent of the federal credit.
 

New Jersey

A.B. 3016 (2010)
New Jersey reduced the EITC from 25 percent to 20 percent of the federal credit.

S.B 3000 (2010)
Appropriates $18,393,000 to the EITC program. Makes appropriations for the support of State Government and the several public purposes for the fiscal year ending June 30,2011.


A.B. 4100 (2009)
Anticipates that the state will lose $55 million through the expanded state EITC program during fiscal year 2010. Also appropriates $18,393,000 to the Division of Family Development for the EITC program. Further appropriates $150,000 for the cost of notifying unemployment compensation recipients of the availability of the state EITC. The latter two appropriations reflect the previous year's figures. NOTE: New Jersey's EIC is a "phase-in" program, with this year being the last year of the transition. All families eligible for the federal EITC are now eligible for the state EIC. Previously, the cap was a household income of $20,000.

Oregon

H.B. 2306 (2009)
Protects a debtor's right to receive an EITC after filing for bankruptcy.

 

H.B. 2970 (2009)
Calls for an interdepartmental workgroup within the Interagency Council on Hunger and Homelessness. The workgroup will identify and implement ways to expand the number of taxpayers who claim the federal or state EITC. More specifically, it will develop outreach strategies to expand awareness of the EITC and of free tax preparation services.

Rhode Island

H.B. 5983 (2009)
Exempts EITC payments from a family's income and assets when under consideration for public assitance. The EITC is unaffected by the new language in the bill.

Texas


 

H.B. 2360 (2009)
Requires employers to provide employees with information on general eligibility requirements for the federal EITC. The employer must provide the information in person, via e-mail, on a flyer or payroll stuffer, or by mail. (In other words, the employer cannot simply post the information in a common area.) The employer may also provide IRS publications and federal tax forms necessary to claim the EITC.

S.B. 1 (2009)
Requires local workforce boards and the Texas Workforce Commission to use a portion of appropriated funds to assist recipients of TANF (as well as other low-income workers) in applying for the EITC.

Vermont

H.B. 441 (2009)
Directs the Department of Education to conduct a pilot project that will allow families receiving the EITC to enroll in school nutrition programs without having to apply for SNAP. (However, the family must be categorically eligible for SNAP.)

Virginia


 
 

H.B. 1500 (2011)
Appropriates $185,725 for 2 years to the Virginia Community Action Partnership to support the Virginia Earned Income Tax Coalition, providing grants to local organizations to provide outreach, education and tax preparation services to citizens who may be eligible for the federal EITC. Requires a report on its efforts to expand the number of Virginians who are able to claim the federal EITC.


H.B. 1349 (2010)
Requires the Tax Commissioner to establish a state Free File program, modeled after the federal Free File program, no later than December 31, 2010 for individual income tax returns; provides for free, online tax preparation and filing services; relates to claiming the federal earned income tax credit.

H.B. 30 (2010)
Appropriates $185,725 the first year and $185,725 the second year from the general fund to be provided to the Virginia Community Action Partnership to support the Virginia Earned Income Tax Coalition (EITC) and provide grants to local organizations to provide outreach, education and tax preparation services to citizens who may be eligible for the federal Earned Income Tax Credit. The Virginia Community Action Partnership is required report on its efforts to expand the number of Virginians who are able to claim the federal EITC, including the number of individuals identified who could benefit from the credit, the number of individuals counseled on the availability of the federal EITC, and the number of individuals assisted with tax preparation to claim the federal EITC.


H.B. 29 (2009)
Provides funding ($230,000 the first year, $218,500 the next) to the Virginia Community Action Partnership to support the Virginia Earned Income Tax Coalition and give grants to local organizations. These organizations will in turn provide outreach, education, and tax preparation services to citizens who may be eligible for the EITC. The Community Action Partnership will report on its efforts to expand the number of people who are able to claim the federal EITC. This report should include the number of people who could benefit from the credit, the number counseled on the credit's availability, and the number assisted with claiming it.

S.B. 15 (2009)
Requires the state government to notify recipients of TANF, food stamps, or medical assistance that they may be eligible for the EITC. This applies to those who earned income during the previous year and either did not file taxes or did not claim the EITC. Each year, these households will receive information on the qualifying income levels, the amount of the credit, the process of applying, and the availability of assistance in applying.

S.B. 860 (2009)
Requires employers to post notices provided by the DSS concerning eligibility for the state and federal EITC. Employees may apply for the credit on tax returns or receive advance payments throughout the year.

 
Wisconsin

A.B. 40 (2011)
Decreases the credit from 14 percent to 11 percent for two children and from 43 percent to 34 percent for three children.

 

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