BREAKING: Utah becomes 30th state to enact EITC

By Juan Tirado

In a special session yesterday, the Utah Legislature approved a package of new tax laws that included the creation of a state-level Earned Income Tax Credit (EITC) for those experiencing intergenerational poverty. Governor Gary Herbert (R) is expected to sign the package, which also included $500,000 in funding to support outreach around the new EITC and a grocery sales tax credit.

Utah’s new EITC will be fully refundable and worth 10% of the federal EITC. The credit is expected to benefit roughly 25,000 working families across the state. With this, Utah becomes the 30th state in the nation with an EITC, and adds to the growing momentum behind advancing the EITC at the state-level — California, Maine, Minnesota, New Mexico, Ohio, and Oregon expanded their existing EITCs this year and bills to enact new credits made significant progress in several other state legislatures.