News Round Up: February 27, 2023
Top Story: The Kentucky House of Representatives recently passed House Joint Resolution (HJR) 39, which would require the Cabinet for Health and Family Services to develop and implement a federal Earned Income Tax Credit (EITC) outreach and education program. The bill will next head to the Senate. (The Bottom Line News)
- Colorado lawmakers are considering a bill that would expand the state’s EITC and Child Tax Credit (CTC) starting in 2024. House Bill 23-1112 would increase the state EITC from 35% to 40% of the federal rate and increase the state CTC based on the taxpayer’s filing status and income. (Denver ABC 7)
- Massachusetts Sal DiDomenico (D) recently sponsored a bill that would combine the state Household Dependent Tax Credit and the state Child and Dependent Care Tax Credit (CDCTC) into a new Child and Family Tax Credit. The tax credit value would be at least $600 per child. (Everett Independent)
- New Jersey Assemblywoman Verlina Reynolds-Jackson (D) proposed legislation that would increase the state CTC value from $500 to $1,000 for children under 6 and expand eligibility to children ages 6 through 11. (Insider NJ)
- New York lawmakers are advocating for an expanded CTC in the state budget. Under the proposal, the Working Families Tax Credit would combine and expand the state’s existing CTC and EITC to provide families up to $1,500 per child on a quarterly basis. (Spectrum Local News)
- The Center for American Progress’s (CAP) recent report identified five ways governors can increase access to affordable, high-quality childcare, which includes enacting state tax credits. (Center for American Progress)
- The Center for American Progress highlights governors around the country advancing state policies, such as early education programs and state CDCTCs, to address the ongoing need for high-quality childcare and early education. (Center for American Progress)
- The Institute on Taxation and Economic Policy (ITEP) recently examined the top five tax ideas from governors this year, which included advancing state CTCs and EITCs to “bolster family economic security.” (Institute on Taxation and Economic Policy)
- Families and individuals who filed for the federal EITC, CTC, and CDCTC during the pandemic, might see up to a $5,900 loss on tax returns as tax credits and deductions return to pre-pandemic rates. (The Sun)