BREAKING: Idaho Enacts State-Level Child Tax Credit

Today, Idaho Governor Butch Otter (R) signed legislation to enact a state-level, nonrefundable Child Tax Credit (CTC) worth $130 per child. Idaho joins six other states in offering a state-level CTC on top of the federal credit for lower-income families.

Idaho’s new CTC is part of a larger, $200 million tax cut package that drew criticism for not doing enough to shield the state’s low-income families from tax hikes brought on by the new federal tax law. In response, House Majority Leader Mike Moyle (R) has already proposed legislation to expand Idaho’s newly-enacted CTC to $205 per child. The House Revenue and Taxation Committee today voted unanimously in favor of Rep. Moyle’s bill, which now heads to the full House for approval, and Governor Otter has indicated his support for the legislation. However, analysis of the new federal tax law’s effect on Idaho residents shows that the credit would need to be expanded even further, to $287 per child, to fully offset the burden on Idaho families.

For a full list of state-level CTCs, EITCs and other tax credits for low-wage workers, visit our website.