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.
Our analysis demonstrates that the annual public benefits of the elective refundable state EITC program would outweigh its costs, with an estimated ratio of about 10 to 1 with a 10% refundable EITC.