12 States Expand Child Tax Credits & EITCs in 2024 to Combat Poverty and Support Families

During the 2024 legislative season several states expanded refundable tax credits to support children and families.

States Make a Move to Support Children and Families through Tax Credit Expansions

During the 2024 legislative season states made big moves to help children and families by expanding tax credits. Colorado, Illinois, New York, and Utah boosted their refundable tax credits, and the District of Columbia introduced a new Child Tax Credit. These changes give families important financial support even if they don’t owe state income taxes. This helps make taxes fairer by offsetting more regressive taxes like sales and property taxes.

In Colorado, lawmakers increased the Earned Income Tax Credit (EITC) to match 50% of the federal credit for 2024. They also created a new Family Affordability Tax Credit, which could give up to $3,200 per child during good economic times. The District of Columbia introduced a fully refundable Child Tax Credit, offering $420 per child under six. Illinois added a new benefit to its EITC for families with kids under 12 and Utah expanded its Child Tax Credit to cover four-year-olds. New York gave a one-time boost to its Empire State Child Tax Credit for 2024, according to the report of ITEP.

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(photo: Washington State Standard)

Expanding Child Tax Credits and EITCs to Combat Poverty and Support Low-Income Families

These actions are part of a larger trend where states are taking charge of tax credits to reduce poverty. Since the end of federal expansions in the American Rescue Plan Act of 2022 12 states plus D.C. have created or expanded Child Tax Credits, and 17 states plus D.C. have expanded EITCs. States are finding new ways to combine these credits for more impact, helping low- and middle-income families. This year’s changes show that lawmakers understand the importance of these credits in building fairer tax systems and supporting families financially.

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