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state earned income tax creadit enactments

Earned Income Tax Credit Enactments: 2014-2009

Last Updated: August 2014

Overview

Twenty-five states and the District of Columbia have enacted a state Earned Income Tax Credit (EITC).  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 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 from 2009-2014.


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STATES
 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.
 

Colorado S.B. 1 (2013)
Makes the Colorado earned tax credit permanent and refundable at 10 percent of the federal EITC once state revenues meet the level specified by the state's Taxpayers Bill of Rights provision.  Requires that state EITC  not be considered income when determining a person's eligibility for publicly funded benefits.  The bill also expands the childcare and dependent care tax credit and the child tax credit.
 

Connecticut

H.B. 6704 (2013)
Reduces the state EITC from 30 percent to 25 percent in tax year 2013. In tax year 2014 the percentage will increase to 27.5 percent. Requires that any state or federal EITC not to be considered income when determining a person's eligibility for state and federal benefits and services.
 
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

H.B. 2463 (2014)
Appropriates $195,678 for a local non-profit to provide tax preparation services and conduct EITC outreach.

S.F. 2362 (2014) Appropriates $10,000 to research the efficacy of computer-based versus staff assisted tax filing for persons eligible for the EITC. This bill was vetoed by the governor.



S.B. 295 (2013)
Increases the state EITC from 7 percent to 14 percent for taxable year 2014.

S.B. 446 (2013)
Appropriates $195,678 for continuation of a grant to a nonprofit organization providing tax preparation assistance to low-income Iowans to expand the usage of EITC.


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 7 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. 198 (2014)
Increases the state EITC from 25 to 25.5 percent for tax year beginning after December 31, 2014. 


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.R. 15 (2013)
Declares a Show Me The Money Day on the last Saturday in January to coincide closely with the National EITC Awareness Day. Communities will  kick off tax season by offering  financial resources: free financial education classes, affordable financial products, and saving and asset building programs at local events.


H.B. 4361 (2011)
Decreases the credit from 20 percent to 6 percent of the federal credit.

Minnesota H.B. 1777 (2014) 
Increases the maximum credit starting in tax year 2014 and conforms the credit to federal improvements reducing marriage penalties starting with tax year 2013.

New Jersey

A.B. 3482 (2014) 
Would have increased the state EITC from 20 to 25 percent as part of an increase to income taxes on income. This was vetoed by the governor. 



A.B. 3029 (2012)
Would increase the EITC from 20 percent to 25 percent of the federal credit. This bill was vetoed by the governor.

S.B. 2013 (2012)
Appropriates $150,000 to notify unemployment compensation recipients of the availability of the state EITC.


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.

North Carolina H.B. 82 (2013)
Reduces state EITC from 5 percent to 4.5 percent or the taxable year 2013.  Eliminates the state EITC for all taxable years following January 2014.
 
Ohio H.B. 483 (2014) 
Increases the state EITC from 5 to 10 percent of the federal credit allowed for taxable years beginning in or after 2014.

H.B. 59 (2013)
Creates a nonrefundable state EITC at 5 percent of the federal credit and limited to 50 percent of liability for Ohio Taxable Income above $20,000.
 

Oregon

H.B. 3367 (2013)
Extends the sunset of the earned income tax credit to 2020.  

H.B. 360 (2013)
Increases the state EITC from 6 to 8 percent beginning on January 1, 2014.


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. 7133A (2014)
Decreases the state EITC from 25 to 10 percent and makes the credit fully refundable.


H.B. 5983 (2009)
Exempts EITC payments from a family's income and assets when under consideration for public assistance. 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.1085 (2014)
R
equires the state continue to conform to the temporary enhancements made to the federal EITC by the American Recovery and Reinvestment Act of 2009 and American Taxpayer Relief Act of 2013.

H.B. 5001 (2014) 
Appropriates $185,725 for 2013 and the same amount for 2014 to the Virginia Community Action Partnership to support the Virginia Earned Income Tax Coalition and provide grants to local organizations to provide outreach, education and tax preparation services to citizens who may be eligible for the federal EITC.



S.B 1241/H.B. 2150 (2013)
Requires the state continue to conform to the temporary enhancements made to the federal EITC by the American Recovery and Reinvestment Act of 2009 and American Taxpayer Relief Act of 2013.

H.B 1500 (2013)
Appropriates $185,725 the first year and $185,725 the second year to the Virginia Community Action Partnership to support the Virginia Earned Income Tax Coalition. The organization will report the statistics regarding the number of people eligible for or utilizing the benefits.


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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