Earned Income Tax Credit (EITC)

The Earned Income Tax Credit, or EITC, is a federal income tax credit for lower income employed individuals and families. It operates as the largest US antipoverty tool, lifting millions of Americans out of poverty by supplementing earnings for the working poor. In addition to the federal EITC, a number of states offer state EITCs and several more are considering adopting or expanding the tax credit.

The State EITC Online Resource Center also has links to a wide array of information and reports on state EITCs.

Recent EARN Group Reports:

Colorado Fiscal Policy Institute

• The EITC in Colorado (Feb. 2008)
• The EITC: Helping Striving Families Become Thriving Families (May 2007)

Connecticut Voices for Children

• The EITC -- What It Does for CT And How It Could Do Much More (March 2007)
• The Earned Income Tax Credit: Still Lagging Behind in Connecticut (July 2004)

Georgia Budget and Policy Institute

• Fair Taxes for Low-Income Working Families: A Georgia Earned Income Tax Credit (Dec. 2005)

Center for Budget and Tax Accountability

• The Illinois Earned Income Tax Credit
• Top Ten Reasons Working Poor Families Need the EITC

Fiscal Policy Institute (New York)

• New York’s Income Tax System Among the Best for Working Families

Iowa Policy Project

• ‘Enhance’Make Work Pay (March 26, 2007)
• How the EITC Hits Home: Where Iowans Claim the Earned Income Tax Credit (March 2007)
• Help working families, expand the state's EITC (March 28, 2007)

Kentucky Youth Advocates

• The Federal EITC: What it meant for Kentucky and the Nation in Tax Year 2001 (June 2003)

LANO/Louisiana Budget Project

• A Tax Credit That Works For Louisiana's Working Families (July 2007)

Maryland Budget & Tax Policy Institute

• Earned Income Credit Page
• The Merits of Maryland HB 346, which would increase the state’s refundable earned income credit (Feb. 2006)

Michigan League for Human Services

• Rewarding Work and Helping Families: Why a State EITC Makes Sense for Michigan (July 29, 2005)
• Fact Sheet: Michigan’s New EITC

New Jersey Policy Perspective

• N.J.'s Earned Income Tax Credit is a cruel joke (Jan. 28, 2007)

New Mexico Voices for Children

• Economic Justice Page
• Campaign to reduce Child Poverty  (Nov. 2002)

North Carolina Budget and Tax Center

• A State EITC: Rebuild the Economy and Tax Fairly (April 2005)

Policy Matters Ohio

• The Earned Income Tax Credit Page
• EITC Gains, RAL Drains (Feb. 2007)
• Credit Where it’s Due: The EITC in Ohio (March 2006)

Oregon Center for Public Policy

• Making Ends Meet: Improving Oregon's Earned Income Credit (Feb. 25, 2003)

Texas Center for Public Policy Priorities

• EITC 101 (includes EITC by legislative district) (March 26, 2007)

Voices for Utah's Children

• State EITC - Lifting the Tax Burden and Rewarding Work
• How a State EITC Can Help Utah’s Working Families (Jan. 2007)
• The EITC and Error Rates (Jan. 2007)

Wisconsin Council on Children and Families

• The Use of the EITC in Wisconsin

Links to National Resources

State EITC Online Resource Center has links to a wide array of links on state EITCs.

The Brookings Institute provides a variety of useful information, including EITC payments by geographic area.

Center on Budget and Policy Priorities provides a range of analysis on the EITC.

EITC site by the IRS includes state-by-state statistics, public service announcements and general information.

The Institute on Taxation & Economic Policy "Who Pays?" 2003 report includes a distributional analysis of the EITC and other taxes across states.

Search for other EARN reports