What is a state EITC?

A number of states have enacted a state Earned Income Tax Credit that supplements the federal credit and works as a rebate for state taxes paid by low-income working people. Twenty-three states plus the District of Columbia offer a state EITC, which is often a percentage of the federal credit. In addition local governments in Montgomery County, MD, San Francisco, CA and New York City, NY offer their own version of EITCs. EITCs have been enacted in states controlled by both Republicans and Democrats and have been supported by both business groups and social service advocates.¹

For more information on state Earned Income Tax Credits, please see:

• Policy Basics: State Earned Income Tax Credits, Center on Budget and Policy Priorities
• “A HAND UP: How State Earned Income Tax Credits Help Working Families Escape Poverty in 2006,” by Ami Nagle and Nicholas Johnson at the Center on Budget and Policy Priorities.

For a listing of states that offer a state EITC, please view this excel spreadsheet.

¹Nicolas Johnson, and Ami Nagle, “A Hand Up: How State Earned Income Tax Credits Help Working Families Escape Poverty in 2006,” Center on Budget and Policy Priorities, March 2006. Note: The state of Colorado and the city of Denver, CO have suspended its state and local EITCs until 2010 due to a lack of funds.