News Round Up: March 6, 2023

Top Story: The Michigan Senate recently sent legislation to Gov. Gretchen Whitmer’s desk that would increase the value of the state Earned Income Tax Credit (EITC) from 6% to 30% of the federal rate. (Detroit News)

  • California Assemblymember Miguel Santiago (D) unveiled Assembly Bill 1128, which would expand eligibility for the Young Child Tax Credit (YCTC) to all families with children who qualify for California’s EITC. (Oakdale Leader)
  • Connecticut lawmakers are considering expanding tax credits as part of a larger effort to support families, seniors, and restaurants. The plan is to permanently expand the state EITC to 40% of the federal rate and to value the state Child Tax Credit (CTC) at $250 per child. (Hartford Courant)
  • Maryland lawmakers are debating passing Senate Bill 552, which would permanently expand the state EITC from 28% to 45% of the federal rate and would broaden eligibility for the state CTC. This bill, supported by Gov. Wes Moore’s administration, is expected to be signed and enacted should it make it to his desk. (Southern Maryland Chronicle)
  • Massachusetts Governor Maura Healey (D) and Lt. Governor Kimberley Driscoll (D) unveiled a $742 million tax relief package, which includes a new Child and Family Tax Credit that combines the Household Dependent Tax Credit and Child and Dependent Care Tax Credit (CDCTC). The Child and Family Tax Credit is currently valued at $600 per dependent, which includes children under 13, people with disabilities, and senior dependents aged 65 and older. (Commonwealth of Massachusetts)
  • Montana Greg Gianforte’s (R) proposed CTC has stalled out in the House Appropriations Committee. The credit would have created an annual credit of up to $1,200 per child under six. (Montana Public Radio)
  • Senate Bill 121 is expected to pass its final reading on Wednesday and return to Montana Greg Gianforte’s (R) desk for approval. The bill is a key piece of the governor’s tax proposal and would expand the state EITC from 3% to 10% of the federal rate and decrease the top marginal income tax rate from 6.5% to 5.9%. (NBC Montana)
  • New Jersey Governor Phil Murphy (D) proposed a $53.1 billion spending plan that would double the value of the state CTC from $500 to $1,000 per child. (New Jersey Monitor)
  • New York City Mayor Eric Adams (D) plans to spend $1.5 million promoting tax relief benefits and an expanded state EITC to New Yorkers, including through multimedia marketing and television ads in English and Spanish. (Yahoo! News)
  • Ohio lawmakers introduced House Bill 39, which would make the state EITC partially refundable. (The Lakewood Observer)
  • The Hamilton Project’s recent report investigates how the expanded federal CTC positively impacts child poverty across states. The report finds that poverty reductions were highest in states with a relatively lower cost of living, but with a higher poverty baseline. The impact was also felt in states with a higher proportion of kids who weren’t eligible for the federal CTC before its 2021 expansion. (The Hamilton Project)
  • The Hamilton Project released a recent proposal for an enhanced but efficient CTC design that addresses common concerns about expanding the federal CTC. The authors proposed a CTC with partial refundability, a steep phase-in, and a lower phase-out income threshold. This would increase the value of the credit and provide benefits to millions of families with no income while addressing political constraints. (The Hamilton Project)
  • The Hamilton Project shares a recording of Sen. Michael Bennet (D) discussing next steps for the federal CTC. (Office of U.S. Senator Michael Bennet)