BREAKING: Montana Enacts State-Level EITC

By Kate Skochdopole

Today, Montana Gov. Steve Bullock (D) signed into law HB 391, a bill that creates a refundable state Earned Income Tax Credit (EITC) worth 3 percent of the federal credit. The legislation passed both chambers with broad, bipartisan support on Wednesday evening.

The new EITC will help over 80,000 Montana families make ends meet and will especially benefit rural workers, who are more likely to be eligible for the EITC than those living in cities. Montana joins 27 other states and D.C. in offering a state-level EITC on top of the federal credit. Advocates and lawmakers in Montana have worked for several years to create a state EITC, and TCWF featured their efforts in last year’s installment of case studies.

So far, 2017 has been a good year for the EITC at the state level. Yesterday, the South Carolina legislature enacted a nonrefundable state EITC worth 125 percent of the federal credit, and a bill that would enact a Hawaii EITC is awaiting the signature of Gov. David Ige. For more updates on state legislative sessions, follow TCWF on Twitter.