State Earned Income Tax Credit

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State Earned Income Tax Credit

Earned income tax credits (EITCs) are government benefits for low-income workers and their families. In addition to the federal EITC, some states offer EITCs as well. States that offer EITCs make their own determinations regarding credit eligibility, credit value, and refundability. However, states often model their credits after the federal credit, particularly with respect to their eligibility and credit value.

Featured Resources

2025 Roadmap Profile: State Earned Income Tax Credit

Research finds that the state EITC is the most effective anti-poverty policy for children in the US when compared to the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families, and state child tax credits.

Evidence Review: State Earned Income Tax Credit

A refundable state earned income tax credit (EITC) of at least 10 percent of the federal credit promotes healthier and more equitable birth outcomes, increases parents’ workforce participation, and improves household economic security.

Implementing a Refundable State Earned Income Tax Credit in South Carolina: A Benefit-Cost Analysis

Our analysis demonstrates that the annual public benefits of the elective refundable state EITC program would outweigh its costs.

Related Resources

State Policy Progress on Earned Income Tax Credits in 2025

State earned income tax credits (EITCs) provide financial support to low and moderate-income families, offering relief that can reduce poverty and improve economic stability. Research shows that access to supports such as EITCs can lead

How Do State Policy Choices Impact Family Resources?

The Policy Impact Calculator compares the level of resources available to a full-time working family across states. This interactive tool offers a self-guided tour of the substantial variation in state policy choices for working families

State policy progress on refundable state earned income tax credits (EITCs) in 2024

A refundable state earned income tax credit (EITC) of at least 10 percent of the federal credit is one of 12 prenatal-to-3 policies included in our 2024 Prenatal-to-3 State Policy Roadmap, which details states’ progress

State Policies to Reduce Disparities in Childhood Poverty: A Summary of the Evidence

Financial hardship in early childhood can disrupt healthy brain development and compromise the foundation for long-term development and wellbeing. Because of discrimination in employment and education as well as unequal opportunities to build wealth, Black,

2024 Prenatal-to-3 Legislative Highlights

With most legislatures adjourned for the year, we recap the 2024 action on state policies to support children and families. So far this year, lawmakers throughout the country debated—and many passed—legislation that aligns with four key components of the prenatal-to-3 system of care.

Refundable Tax Credits: Uptake Patterns in Texas Reveal Opportunities for States to Support Families

States and community organizations can increase awareness of credits. Increasingly, the state and federal government use tax credits, such as the child tax credit and the earned income tax credit, to support families with low