News Round Up: April 4, 2022

Top Story: House Bill 1437, which includes the creation of a non-refundable, state-level Earned Income Tax Credit (EITC), is in its last day of discussion as the Georgia General Assembly session comes to an end. The House and Senate are at odds in debates over a series of major changes to the state’s personal income tax contained in the bill. (Georgia Budget & Policy Institute)

  • Democratic lawmakers are calling for more raising more awareness of the expanded Child and Dependent Care Tax Credit (CDCTC), which offers $4,000 in care expenses paid per qualifying dependent. The tax credit is often overshadowed by the Child Tax Credit (CTC), which focuses on children while the CDCTC can also be claimed by households caring for the elderly or disabled. (POLITICO)
  • Colorado lawmakers introduced Senate Bill 22-182 which would fund an education initiative to teach qualifying individuals how to file for tax credits such as the CTC and EITC. Additionally, the bill would provide grants to local non-profits and services that assist low-income households with tax filing and other financial support. (The Daily Sentinel)
  • Virginia parents and organizations are coming together ahead of the state’s budget negotiations for FY2022 to advocate for a refundable state EITC, as well as a one-time tax rebate and full funding for K12 public schools. (WFXR Fox)
  • Nearly 1 million low-income families in California are expected to not receive their full state EITC or CTC refunds this year as the state intercepts the money to pay off outstanding debts. Organizations and advocacy groups are urging Gov. Newsom’s administration to suspend these “offset” initiatives through July as the state had done early last year. (Los Angeles Times)
  • New York lawmakers are in discussion of an expanded state CTC that could bring $330 per child to thousands of households with younger children. The current plan only covers families with children older than four. A bill to expand the CTC was first proposed in March 2021 but was never voted on. After the expiration of the federal CTC expansion, urgency to improve state programs became more prevalent. (The Sun)
  • In a new blog post, we discuss Prosperity Now’s recent webinar presentation that focused on a new tool which utilizes data from the Tax Policy Center to help determine where eligible families may potentially be missing out on the expanded CTC. (TCWF)