State and Local Government EITC Programs
Twenty-three states, the District of Columbia, New York City, Montgomery County, Maryland and San Francisco created independent EITC programs based on the federal program. Most use federal eligibility rules and their credit parallels major elements of the federal structure. In most states and localities, the credit is refundable (as is the federal EITC) although in a few, the EITC is used only to offset taxes owed.
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Refundable Credits: |
Non-Refundable Credits: |
| District of Columbia Illinois Indiana Iowa Kansas Louisiana Maryland Massachusetts Michigan Minnesota Nebraska New Jersey New Mexico New York New York City North Carolina Oklahoma Oregon Rhode Island San Francisco Vermont Washington* Wisconsin |
Delaware |
*The state of Washington will implement the program in 2012.
Find more about States and Local Governments with EITC on the IRS Website.
Find further details on state EITCs and how they can help working families escape poverty and how enacting an EITC is relatively affordable for states or localities in reports from the Center on Budget and Policy Priorities. You leave this IRS-sponsored site to view the reports on the Center On Budget and Policy Priorities' web site. Listed here are some of the reports issued by the CBPP organization:
- How Much Would a State Earned Income Tax Credit Cost in Fiscal Year 2012? By Erica Williams and Nicholas Johnson
- State Earned income Tax Credits: 2010 Legislative Update by Erica Williams, Nicholas Johnson and Jon Shure
- Some States Scaling Back Tax Credits for Low-Income Families, Measures Would Increase Poverty, Slow Job Growth. By Nicholas Johnson and Erica Williams
Last updated: 1/6/11