Massachusetts Expands EITC

Massachusetts Governor Charlie Baker (R) has signed a $41 billion state budget for fiscal year 2019 that includes an expansion of the state’s Earned Income Tax Credit (EITC) from 23 to 30 percent of the federal credit.

The expansion is expected to benefit roughly 450,000 working families across Massachusetts. Advocates had also campaigned this year for legislation that would provide $800,000 in additional funding for Volunteer Income Tax Assistance (VITA) sites that help eligible families claim the state’s EITC, but the provision was not included in the final budget deal.

Massachusetts’ EITC is now one of the largest state-level credits in the country, and advocates hope to see the credit grow even further, up to 50 percent of the federal EITC. This year’s legislative victory comes on the heels of another monumental EITC improvement in the state: in 2017, Massachusetts passed legislation to make it easier for survivors of domestic violence to claim the credit.

Massachusetts joins California, Louisiana, Maryland, New Jersey and Vermont  in expanding the EITC this year, making 2018 a banner year for the credit at the state level. To learn more about state-level EITCs, visit our 50-state map and view other resources here.