Child Tax Credit Enactments

10/19/2021

income tax form with pencil and calculator

Overview

Seven 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 $205 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 the creation of a state level tax credit. The table below is a compilation of state child tax credit laws enacted from 2013-2021.

Enacted Legislation

States

Enactments

California

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

HB21-1311 (2021)

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

Connecticut

CT 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.

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.

New York

S7509C (2018)

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

North Carolina

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 child tax credit equal to 5% of the federal child tax credit.