News Round Up: September 25, 2023

Top Story: The Massachusetts House and Senate reached an agreement on a tax relief bill that will increase the state Earned Income Tax Credit (EITC) from 30% to 40% of the federal credit and incrementally increase the state Child and Dependent Care Tax Credit (CDCTC) from $180 to $310 per dependent for fiscal year 2023, then to $440 per dependent for 2024 and beyond. The package is expected to reach Gov. Maura Healey’s (D) desk by the end of the week. (WCVB)

  • California passed Senate Bill 131, which requires employers to notify employees that they may be eligible for the state EITC. The amendment will take effect starting January 1, 2024. (CBIZ)
  • The Institute on Taxation and Economic Policy (ITEP) released a report on how re-expanding the federal CTC to mirror its 2021 benefits would allow the tax credit to reach more children of color and advance racial equity in the nation’s tax code. (Institute on Taxation and Economic Policy)
  • ITEP provides a brief overview of the states that have enacted or expanded state-level CTCs this year and offers suggestions for how lawmakers can better design tax policies that reach all low- and moderate-income families with children. (Institute on Taxation and Economic Policy)
  • ITEP gives an overview of the states that have enacted or expanded state-level EITCs this year and offers suggestions for how lawmakers can maximize the impact of their state tax credits. (Institute on Taxation and Economic Policy)
  • The University of North Carolina at Chapel Hill (UNC) shares best practices for increasing participation in the federal EITC. The suggestions were informed by existing literature and research findings regarding the obstacles North Carolina’s rural workers faced in claiming the tax credit. (UNC School of Government)
  • S. Representative Bonnie Watson Coleman (NJ-12) reintroduced the EITC Modernization Act, which would expand eligibility for the federal EITC to caregivers and independent students pursuing higher or vocational education. (Insider NJ)
  • The Internal Revenue Service (IRS) recently announced changes to auditing practices in an effort to reduce disproportional discrimination against Black taxpayers who claim the federal EITC. (The New York Times)
  • The Center on Budget and Policy Priorities (CBPP) emphasizes how bolstering public programs, such as the federal CTC, at the height of the pandemic prevented record surges in poverty and, instead, resulted in record declines. (Center on Budget and Policy Priorities)
  • Every week, TCWF spotlights one of several partner organizations and the remarkable work happening within their respective states. This week we highlight California Budget & Policy Center’s legislative suggestions for federal and state-level policymakers to combat the surge in poverty rates in California following the recent Census report. (California Budget & Policy Center)
  • #ICYMI: Tax Credits for Workers and Families (TCWF) created an audiogram for Labor Day to underscore the significance of the 19th century Labor Movement, and how the federal EITC can further empower today’s workers. (Tax Credits for Workers and Families)
  • #ICYMI: In a new blog, TCWF explores how policymakers can invest in today’s youth and advance essential federal and state policies, such as the EITC and Child Tax Credit (CTC), to support the growth and development of the nation’s future generations. (Tax Credits for Workers and Families)
  • #ICYMI: TCWF discusses how permanently expanding the federal CTC is one of many important steps the nation can take to afford students from low-income households the opportunities, options, and autonomy to shape their future for themselves. (Tax Credits for Workers and Families)