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 toward adopting and implementing policies that effectively improve child and family wellbeing.
As of October 1, 2024, nearly half of states offer a refundable state EITC of at least 10 percent of the federal credit to eligible taxpayers—with Montana newly implementing their credit effective tax year 2024. The impact that state EITC policies can have on families varied, based in large part on the EITC value, refundability, and eligibility requirements.
Just this year, 21 states introduced—and some successfully enacted—legislation to establish or expand a state EITC.
Read the brief for more details on state progress.
The recently updated Prenatal-to-3 State Policy Roadmap provides insight into the core policy levers and further illustrates their interplay through vivid graphics, showcasing the variation in EITC policies across states.
