EITC Enactments 2009-2019

7/7/2020

INCOME TAX FORM

Overview

Thirty states, the District of Columbia, Guam and Puerto Rico 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% to 40% 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 2009-2019.


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STATES
 ENACTMENTS

Arkansas

SB 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.

Arizona

HB 2622 (2016) 
Requires the Department of Economic Security to provide all childcare subsidy recipients with information on the EITC.

California

SB 855 (2018) 

Expands the definition of an "eligible individual” to include workers without children who have attained 18 years of age.

 

SB 106 (2017)

Expands the state earned income credit by providing additional conformity with federal income tax law to include net earnings from self-employment in earned income and revises the calculation factors to expand the credit amount and adjust the credit amount annually. Requires the Franchise Tax Board to prepare an annual report to measure whether the credit achieves its intended purpose.

 

SB 826 (2016)
Appropriates $11,752,000 for implementation of the state's EITC including processing returns, auditing, and making necessary system changes to support the EITC program. Also specifies that $2 million of this appropriation be used to support nonprofit and community-based organizations that increase awareness of the state EITC and free tax preparation assistance. 

 

AB 1847 (2016)
Expands current employee notification requirements to include information about the state EITC in addition to the federal EITC. Also requires California employers to post a statement about the EITC in the workplace and for specified state departments, agencies and programs serving individuals who may qualify for the federal and/or state EITC to notify these individuals of eligibility and ways to claim the credit.

 

AB 2877 (2016)
Requires specified state departments, agencies and programs serving CalWORKS recipients to encourage potentially eligible recipients to claim the state and/or federal EITC by providing information about the tax credit and distributing the form to claim the EITC.

 

AB 93 (2015)
Creates a refundable state EITC making California the 26th state to offer their own EITC. 

Colorado SB 1 (2013)
Makes the Colorado earned tax credit permanent and refundable at 10% 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

HB 6704 (2013)
Reduces the state EITC from 30% to 25% in tax year 2013. In tax year 2014 the percentage will increase to 27.5%. 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.

 

SB 1239 (2011)
Establishes an EITC equal to 30% 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

HB 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

HB 209 (2017)

Establishes a nonrefundable state earned income tax credit equal to 20% of the federal credit. 

 

HB 200 (2009)
Appropriates $198,000 to expand awareness of the federal EITC for low-income families in Honolulu county. 

Illinois

SB 9 (2017)

Increases EITC to 14% of the federal EITC for 2017, then to 18% for 2018 and each year thereafter.  

 

SB 400 (2012)
Increases ETIC from 5% for 2012 to 7.5% for 2013, then to 10% of the federal tax credit after 2013.

Indiana

HB 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.

 

HB 1198 (2009)
Provides an additional credit equal to 9% (not the previously allowed 6%) of the federal EITC.

Iowa

HF 766 (2019)

Appropriates $195,000 for continuation of a grant to an Iowa-based nonprofit for the purpose of providing tax preparation assistance in order to assist low-income residents with tax filing and expand usage of the EITC.

 

HB 2460 (2016) 

Appropriates $195,678 for continuation of a grant to an Iowa-based nonprofit for the purpose of providing tax preparation assistance in order to assist low-income residents with tax filing and expand usage of the EITC.

 

SB 505 (2015)
Appropriates $293,517 for continuation of grants to two local non-profits to provide tax preparation services and conduct EITC outreach.

 

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

 

SF 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.

 

SB 295 (2013)
Increases the state EITC from 7% to 14% for taxable year 2014.

SB 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.

 

SB 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.

 

SF 209 (2011)
Increases the state EITC from 7% to 10% of the federal credit. The bill makes appropriations to various community colleges.
Enacted 04/21/2011 – Line Item Veto by Governor

 

HF 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

HB 2360 (2010)
Kansas expanded the EITC from 17% to 18% of the federal credit for three years.

Louisiana

HB 18 (2018) 

Increases the state EITC to 5% of the federal credit. 

 

HB 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.

Maine

LD 1671/HP 1198 (2019)

Requires the bureau to furnish printed notices to employers that state an employee may be eligible for federal and state earned income tax credits. Requires employers to post such notice in a place accessible to employees. Increases the resident and nonresident earned income tax credits from 5% to 25% of the federal earned income tax credit 25% for workers without dependent children and from 4% to 12% for all other eligible workers.

 

LD 1324/SP 412 (2019)

Establishes the Committee to Study the Feasibility of Creating Basic Income Security and requires the committee to examine and make recommendations on the feasibility of a direct cash payment system and other programs designed to help individuals and families become more economically secure, including, but not limited to tax rebates and credits, including strengthening the earned income tax credit.

Maryland

HB 1411 (2019)

Appropriates $200,000 each fiscal year for the CASH Campaign of Maryland to provide free volunteer income tax assistance that helps low-income individuals and families claim the federal earned income tax credit or the state earned income tax credit.

SB 647/HB 856 (2018)
Expands the state earned income tax credit to allow individuals without qualifying children to claim the credit.

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

HB 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.

Massachusetts

HB 3671 (2015)
Increases the rate of the state EITC from 15% to 23% of the federal credit.

Michigan
 

HR 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.

 

HB 4361 (2011)
Decreases the credit from 20% to 6% of the federal credit.

Minnesota

HB 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.

Montana

HB 723 (2019)

Requires certain tax credits, including the earned income tax credit, to be reviewed by an interim committee to review the credits and make a recommendation to the legislature about whether to eliminate or revise the credits.

 

HB 391 (2017) 

Establishes a nonrefundable state earned income tax credit equal to 3% of the federal credit. 

New Jersey

AB 3088 (2018) 

Increases the state EITC to 40% of the federal credit amount beginning in tax year 2018.

 

AB 12 (2016)

Increases the state EITC from 30% to 35% of the federal credit for tax years after January 1, 2016.

 

AB 4602 (2015)
Increases the rate of the state EITC from 20% to 30% of the federal credit.

 

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

 

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

 

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

 

AB 3016 (2010)
New Jersey reduced the EITC from 25% to 20% of the federal credit.

SB 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.

 

AB 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.

New York

SB 6409 (2016) 

Makes the enhanced EITC for noncustodial parents in the state permanent—this was set to expire in 2016 prior to enactment of this bill.

North Carolina HB 82 (2013)
Reduces state EITC from 5% to 4.5% for the taxable year 2013.  Eliminates the state EITC for all taxable years following January 2014.
Ohio

HB 483 (2014) 
Increases the state EITC from 5% to 10% of the federal credit allowed for taxable years beginning in or after 2014.

 

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

Oklahoma

SB 1604 (2016) 

Makes the state's EITC nonrefundable. 

Oregon

HB 2164 (2019)

Increases the state earned income tax credit to 9% of the federal earned income tax credit and increases the state earned income tax credit for taxpayers with a dependent under age three to 12%.

 

HB 4110 (2016) 

Increases Oregon’s state EITC from 8% of the federal credit to 11% of the federal credit for families with children under the age of 3.

 

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

 

HB 360 (2013)
Increases the state EITC from 6% to 8% beginning on January 1, 2014.

 

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

HB 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

HB 7454 (2016)

Increases the state's EITC from 12.5% to 15% of the federal credit.

 

HB 5900Aaa (2015)
Increases the rate of the state EITC from 10% to 12.5% of the federal credit.

 

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

 

HB 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.

South Carolina

HB 3516 (2017)

Establishes a nonrefundable state earned income tax credit equal to 125% of the federal EITC, to be phased-in in six equal installments of 20.83% each tax year, beginning in tax year 2018, until it is fully phased-in in tax year 2023.

Texas


 

HB 1 (2015)
Mandates the Texas Workforce Commission and local workforce development boards to assist recipients of TANF who become employed, as well as other low-income workers, to apply for the federal EITC.

 

SB 219 (2015)
Requires that individuals and families receiving various state assistance and benefits are also provided educational materials related to the federal EITC.

 

HB 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.

 

SB 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

HB 79 (2019)

Requires the Department of Taxes to consult with the Agency of Education and the Department of Children and Families regarding whether existing tax data in the possession of the Department, including earned income tax credit data, can be used to increase enrollment in state and federal school lunch assistance programs.

 

HB 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


 
 

HB 402/SB 545 (2016)

Technical, modifies the Virginia tax code to conform to the taxation system of the Internal Revenue Code related to the EITC (specifically, this IRS change made provisions of the EITC that were set to expire in 2017 permanent—these provisions increase the EITC for families with more than two children and reduce the “marriage penalty” associated with the EITC which allows couples with higher income levels to be eligible for the EITC).

 

HB 1026 (2016) 

This bill increases outreach to potential EITC recipients by requiring the Department of Social Services to provide notice to recipients of various state benefits of the availability of the federal and state EITC—this information must be distributed annually and include information on the qualifying income levels, the amount of credit available, the process for applying for the credit and the availability of assistance in applying for the credit.

 

HB 29 (2016)
Appropriates two years of funding ($185,725 from the general fund for the first year and $185,725 from the Temporary Assistance for Needy Families block grant for the second year) to contract with a nonprofit to provide outreach, education and tax preparation services to reach residents who may be eligible for the federal EITC. 
 

HB 1400 (2015)
Appropriates $185,725 from the TANF block grant to the state to contract with the Virginia Community Action Partnership to connect with community nonprofits across the state to provide outreach, education, and tax preparation services to citizens that may be eligible for the federal EITC.

 

HB 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.

 

HB 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.

 

SB 1241/HB 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.

 

HB 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.

 

HB 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.

 

HB 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.

 

HB 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.

 

HB 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.

SB 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.

 

SB 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

AB 5 (2018)

Authorizes the creation of a two-year pilot program for tax years 2019 and 2020, and a permanent program (beginning in tax year 2021) under which periodic payments of an eligible individual's or married couple's federal and state earned income tax credit would be made to the claimant throughout the year, instead of a single payment when the claimant files his or her income tax return.

 

AB 40 (2011)
Decreases the credit from 14% to 11% for two children and from 43% to 34% for three children.