State Earned Income Tax Credits

Research Report

State Earned Income Tax Credits

March 29, 2004

Abstract

The federal earned income tax credit (EITC) was established in 1975 as part of the individual income tax to offset payroll taxes for low-income working families. After several expansions, the refundable tax credit is now the largest federal cash assistance program for low-income families. A growing number of states have adopted their own EITCs.

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