Missouri Legislature Passes State Earned Income Tax Credit
Missouri’s state lawmakers passed legislation last week to create an Earned Income Tax Credit (EITC) worth 10% of the federal credit, also known as the Missouri Working Families Tax Credit.
The Missouri Budget Project (MBP) estimates that the credit will benefit 250,000 families and provide much-needed tax relief. The credit will initially be worth 10% of the federal credit but will expand to 20% of the federal credit if state revenues increase by $150 million.
“For more than two decades, Missouri Budget Project (MBP) has been fighting for a state earned income tax credit that targets tax relief to low and middle-income families,” MBP President and CEO Amy Blouin said in a statement.
Legislators and community partners such as MBP have advocated for a state EITC for more than two decades, and legislative attempts to enact the credit were unsuccessful in recent years. However, this session, bipartisan lawmakers who supported the bill described it as key to providing relief to families impacted by the pandemic.
By passing a state EITC, Missouri will join 31 states, D.C., and Puerto Rico with state-level EITCs.
To learn more about other state-level tax credits across the country, visit our 50-state map here.