Child Tax Credit Enactments

11/4/2022

income tax form with pencil and calculator

Overview

Twelve states have enacted a state child tax credit. State laws vary regarding refundability and how tax credits are calculated. The two primary approaches are establishing a fixed limit and percentage of the federal child tax credit. The fixed limit for state child tax credits ranges from $75 to $1,000. The percentage for state child tax credits ranges from 5% to 33% of the federal child tax credit. States have also enacted legislation related to the federal child tax credit or explored creating a state level tax credit. The table below is a compilation of state child tax credit laws enacted from 2013-2022.

Enacted Legislation

States

Enactments

Alabama

HB 231/SB 152 (2022) 

Disregards the federal child tax credit for purposes of calculating an individual's federal income tax deduction.

Arizona

AZ S 1222 (2022)

Exempts the refundable portion of ay federal or state child tax credit from seizure.

California

AB 2881 (2022)

Requires each Basic Needs Center to ensure that students have the information they need to enroll in the young child tax credit. Requires public colleges and universities to provide educational information and student eligibility requirements for the young child tax credit to all incoming students as part of campus orientation and include on the internet website-based student account a notice of the young child tax credit.

SB 201 (2022)

Amends the Young Child Tax Credit and expands the defintion of "qualified taxpayer" to include eligible individual who has a qualified child and would have received an earned income tax credit but for the fact that the individual has earned income of $0 or less for the taxable year.

SB 129 (2021)

Budget act of 2021 that appropriates $15 million to nonprofit and community-based organizations that provide dedicated resources to assist noncitizen Californians in obtaining individual tax identification numbers and to create an increased awareness of the Golden State Stimulus I and II, CalEITC, and Young Child Tax Credit programs.

AB 1876 (2020)

Expands eligibility to the young child tax credit to include individuals using a valid individual taxpayer identification number or similar.

 

AB 91 (2019)

Establishes a young child tax credit and outlines qualifying criteria.

Colorado

HB 1311 (2021)

Establishes a refundable state child tax credit dependent upon marital status, number of children and income level.

Connecticut

HB 5506 (2022)

Establishes a refundable state child tax rebate of $250 per child with a maximum of $750 allowed. The rebate is phased out at a rate of 10% for every $1,000 over certain income thresholds: $100,000 for single filers, $160,000 for Head-of-Household, and $200,000 for joint filers.

 

SB 1202 (2021)

Creates a plan to establish a state child tax credit and present such a plan to the joint standing committee of the General Assembly.

Delaware

HCR 33 (2021)

Recognizes June 21, 2021, as Child Tax Credit Awareness Day.

Idaho

HB 675 (2018)

Sets the child credit rate at $205.

Illinoisa

SB 687 (2021)

Establishes a non-refundable child tax credit equal to $100 per qualifying child for taxable years beginning on or after January 1, 2021. The amount of the credit is reduced by $5 for each $2,000 by which the taxpayer's net income exceeds $60,000 in the case of a joint return or exceeds $40,000 in the case of any other form of return.

Louisiana

SB 217 (2019)

Exempts the refundable portion of the federal Child Tax Credit from seizure except from the Department of Revenue or in cases of child support arrears.

Maine

L.D. 1655 (S.P. 612) (2018)

Establishes a $300 dependent exemption tax credit for each qualifying child and dependent of the taxpayer for whom the federal child tax credit was claimed.

Maryland

SB 0218 (2021)

Permits taxpayers making less than $6,000 per year to claim a refundable tax credit of $500 per child against the state income tax.

Massachusetts

HB 4002 (2021)

Permits taxpayers to choose from either a refundable Household Dependent Tax Credit or refundable Dependent Care Tax Credit. The HDTC applies to dependents who are children under 12 years old, adults 65, or anyone with a disability. The HDTC is $180 for one dependent and $360 for 2 or more dependents.

New Jersey

S 2523 (2022)

Establishes a refundable state child tax credit dependent upon income ranging from $100 to $500.

New Mexicob

HB 163 (2022)

Establishes a refundable state child tax credit dependent upon income and marital status ranging from $75 to $175 per qualifying child.

New Yorkc

S 8009 (2022)

Creates a temporary supplemental Empire State child credit.

 

S 2755C (2021)

Requires the Child Poverty Reduction Advisory Council to consider policy proposals that include expanding and strengthening the state's child tax credit to include young children, and to eliminate the minimum income threshold. Also requires the advisory council to produce a report outlining the effect that the enactment of such proposals may have on the rate of childhood poverty in New York.

 

S 7509C (2018)

Budget bill which includes amended language related to the Empire State Child Credit.

North Carolina

SB 105 (2021)

Increases the maximum child deduction amount to $3,000 for each child for whom the taxpayer is allowed the federal child tax credit. Expands access to the child deduction to higher income families.

 

SB 257 (2017)

Allows a taxpayer a deduction of $500-$2,500 for each child for whom the taxpayer is allowed the federal child tax credit (depends on income and filing status).

Oklahoma

HB 2308 (2013)

Establishes a non-refundable state child tax credit equal to 5% of the federal child tax credit.

Vermont

H 510 (2022)

Establishes a refundable state child tax credit of $1,000 per child under the age of 5. Qualifying taxpayers must have income below $125,000. The tax credit will phase out at a rate of $20 per every $1,000 earned over the $125,000 threshold.