News Round Up: May 8, 2023
Top Story: To improve childcare access in New York, Gov. Kathy Hochul (D) expanded the Empire State Child Tax Credit (CTC) to children under four years old as part of the state’s FY2024 budget. The expansion will provide $179 million in support to over 525,000 low- and middle-income families. (Official Office of Governor Kathy Hochul)
- Hawai’i’s legislature recently passed House Bill 954, increasing the state Earned Income Tax Credit (EITC) from 20% to 40% of the federal rate and improving the state Child and Dependent Care Tax Credit (CDCTC). (Big Island Now, Honolulu Civil Beat)
- Maine lawmakers are considering LD 1544, which would remove minimum income requirements for the state CTC and increase the tax credit’s value from $300 to $350 per dependent. If passed, the changes to the tax credit will be retroactively available starting this year. (Press Herald)
- The Institute on Taxation and Economic Policy (ITEP) examined proposals from the Minnesota House, Senate, and Gov. Tim Walz’s (D) office on how the state can best utilize its $17.5 billion surplus. All three proposals include ways to expand state tax credits. (Institute on Taxation and Economic Policy)
- The Internal Revenue Service (IRS) recently released a new EITC Table Chart to help taxpayers identify their eligibility for the federal tax credit and determine how much they are entitled to in the 2023 tax year. (Newswires)
- A group of progressive U.S. Senators is urging IRS Commissioner Danny Werfel to simplify the tax filing process and expand access to free e-filing services. They’re arguing that millions of taxpayers eligible for critical tax benefits, such as the federal ETIC and CTC, don’t claim them due to the complexities of tax filing. (Office of U.S. Senator for Colorado Michael Bennet)
- Researchers from Harvard and Washington University in St. Louis released a study that indicates well-funded, high-quality anti-poverty measures, such as the EITC, can improve brain development and mental health in children. (The Hill)