A refundable state earned income tax credit of at least 10 percent of the federal credit is one of the five most effective policies a state can implement to ensure children get off to a healthy start and thrive, and that promote greater equity in child wellbeing.
The state earned income tax credit (EITC) is a tax credit for low-income workers, typically calculated as a percentage of the federal EITC. The value and administration of the state EITC is determined by each state, including whether the state credit is refundable (providing a refund to households even in the absence of tax liability).
The most rigorous research studies show that a state earned income tax credit:
| IMPACT OF STATE EARNED INCOME TAX CREDIT | EVIDENCE OF IMPACT |
Promotes healthy births |
|
Reduces racial disparities in birth outcomes |
|
Increases a family’s economic security |
|
Boosts maternal labor force attachment |
|
Visit the Clearinghouse for the comprehensive evidence review on State Earned Income Tax Credit.
The prenatal period to age 3 is the most sensitive and rapid period of growth for the brain and body. State policy choices have a substantial impact on the wellbeing of infants, toddlers, and their parents, and on promoting equity among children. See the Prenatal-to-3 State Policy Roadmap for more information on the most effective policies and strategies states can implement to help children thrive from the start.
Have questions? Please contact us.
You’re invited to the free, virtual National Prenatal-to-3 Research to Policy Summit and release of the 2021 Prenatal-to-3 State Policy Roadmap for states on Thursday, October 7, 2021. Register today!
