,How Much Would a State Earned Income Tax Credit Cost In 2009?

How Much Would a State Earned Income Tax Credit Cost In 2009?


 

Publication Date: March 2008

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s): Jeremy Koulish; Jason Levits

Research Area: Banking and finance; Government

Keywords: Economic projections; State budgets; Tax code; Income diversity

Type: Report

Abstract:

Twenty-three states have enacted tax credits for low- and moderate-income working families based on the federal Earned Income Tax Credit.  A number of additional states are considering enacting EITCs in the 2008 legislative session.  The following provides guidelines that policymakers and others can use to estimate the cost of a refundable state Earned Income Tax Credit that is set at a percentage of the federal credit.  The estimating procedure is a simple three-step process.