News Round Up: March 14, 2022

Top Story: New Mexico joined many other states in enacting a new state Child Tax Credit (CTC). The recently passed House Bill 163 creates a new refundable tax credit worth $175 per child and eliminates the income tax on Social Security. The new legislation also includes a three-year tax exemption for retired armed forces and a $1,000 refundable tax credit for full-time hospital nurses. (National Interest)

  • New York City Mayor Eric Adams announced he is working in partnership with state lawmakers to expand the state’s version of the federal Earned Income Tax Credit (EITC), which would in turn increase the amount of the city’s EITC, currently set at 5 percent of the state-level credit. The state-level proposal would expand the credit value, the parameters of who is eligible for the tax credit, including young adults aged 18-24, and allow recipients to receive advance payments on a quarterly basis. (NYC, The New York Senate)
  • The White House released an analysis of the American Rescue Plan (ARP), which includes state-level fact sheets detailing the number of workers and families who benefited from the expanded CTC and EITC. (White House)
  • After the expiration of the 2021 CTC expansion, millions of children were forced into poverty. In recognition of the one-year anniversary of the ARP, New Jersey is highlighting the effects of the CTC expansion’s end. Since the expiration, nearly 97,000 children in New Jersey were pushed back into poverty, and if the plan is not reinstated, the state will also lose $514.8 million in additional economic activity each month. (Insider NJ)
  • A new survey indicates that 1 in 7 families who did not file for the expanded CTC in 2021 are unlikely to file a return for the tax credit this year. (Forbes)