Institute on Taxation and Economic Policy (ITEP)

EITC

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ITEP Comment on Proposal to Restrict Tax Credits for Immigrants

October 5, 2026 • By Carl Davis, Emma Sifre

ITEP Comment on Proposal to Restrict Tax Credits for Immigrants

These comments describe the scope and scale of the proposal’s impact for immigrant tax filers and explain that the proposal is contrary to Congressional intent because Congress has already legislated on the question of immigrant access to these credits.

New Census Data Show Importance of Refundable Tax Credits and Need for Improvements

The Child Tax Credit actually moved fewer children out of poverty in 2025 than it did in 2024 prior to Congress passing the so-called "One Big Beautiful Bill Act" (OBBBA).

State Earned Income Tax Credits Will Support Families and Workers in 2027

Nearly two-thirds of states (plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit. These credits boost low-paid workers’ incomes and offset some of the taxes they pay, helping working class families achieve greater economic security.

The Impact of Proposed New Tax Credit Restrictions for Immigrant Filers: An Updated Analysis of the DACA Recipient Population

New Treasury Department public regulations would drastically reduce tax credit claims by DACA recipients and their families, among others. We find that 158,000 people in households with at least one DACA recipient will suffer financial harm, and that more than half of the impacted individuals are U.S. citizens.

Five Things to Know About the Trump Administration’s New Effort to Deny Tax Credits to Lawfully Present Immigrants

Today the Trump administration proposed new regulations seeking to drastically reduce the tax credits that certain immigrant tax filers can claim. The affected credits include the Earned Income Tax Credit (EITC), Additional Child Tax Credit, American Opportunity Tax Credit, and the Adoption Tax Credit. 

Child Tax Credits and Child and Dependent Care Credits: What’s the Difference?

Three popular state tax credits support families with children: the Child Tax Credit (CTC, or child credit), the Child and Dependent Care Tax Credit (CDCTC, or dependent care credit), and the Earned Income Credit (EITC). While the EITC is intended to boost wages for low- and moderate-income workers and families, the CTC and CDCTC are […]

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Ineffective Sales Tax Holidays Miss the Mark

July 15, 2026 • By Miles Trinidad

Ineffective Sales Tax Holidays Miss the Mark

Twenty states have sales tax holidays in 2026. These sales tax holidays will cost states and localities nearly $600 million in lost revenue this year, and they're poorly targeted and too temporary to meaningfully change the regressive nature of a state’s tax system.

2026 Sessions in Review: States Fund Tax Credits by Preserving, Raising Revenue

In a year of cautious uncertainty around current and ongoing revenues, many state lawmakers strengthened their tax credits for families and children.

The Impact of Proposed New Tax Credit Restrictions for Immigrant Filers: An Analysis of the DACA Recipient Population

We find that 337,000 people in households with at least one DACA recipient will suffer financial harm, and that nearly two-thirds (66 percent) of the impacted individuals are U.S. citizens.

The Impact of Proposed New Tax Credit Restrictions for Immigrant Filers: An Analysis of State EITCs

Immigrants and their families in as many as 30 states are at risk of seeing their state tax credits such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) reduced unless state lawmakers act.

New EITC Proposal Would Help Families Dealing with Rising Costs

A new proposal in Congress to expand the Earned Income Tax Credit (EITC) would help families with the costs of raising children. The Working Parents Tax Relief Act is one of the latest approaches to help working-class families deal with an ongoing affordability crisis.

State Rundown 4/23: While Some States Stop Digging, Others Move Full Steam Ahead with Anti-Affordability Agendas

Missouri lawmakers passed legislation that will have residents vote on a proposal at the ballot box. The ask: for them to pay more in sales taxes to offset cuts – and the possible elimination – of the state's individual income tax, which makes up nearly two-thirds of Missouri’s general fund.

While States Debate New Trump Tax Changes, Equity Must Be at the Core

States continue to debate whether and how to link their state tax codes to the 2025 federal tax law. This is not just a technical debate.

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South Carolina’s Expensive, Regressive Tax Law Will Eliminate State’s Income Tax

March 31, 2026 • By Neva Butkus, Dylan Grundman O'Neill

South Carolina’s Expensive, Regressive Tax Law Will Eliminate State’s Income Tax

South Carolina signed into law a regressive tax cut that will disproportionately benefit the state’s highest-income residents while simultaneously jeopardizing the state’s ability to pay for basic public services in the years to come.

State Rundown 3/12: Washington Lawmakers Pass Millionaires’ Tax, Expand Working Families Tax Credit

Washington is on its way to making history after the legislature approved the “millionaires’ tax,” a 9.9 percent tax on income over $1 million. The bill, which is expected to raise more than $3 billion a year, making significant investments in public education and childcare, will also expand the Working Families Tax Credit – the […]

Analysis of Sen. Chris Van Hollen’s Approach to Tax Policy

Sen. Chris Van Hollen has recently introduced the Working Americans’ Tax Cut Act, which offers a generous middle-class tax cut paid for with a new tax on millionaires.

State Rundown 2/11: This Valentine’s Day, Conscious Decoupling Is Our Love Language

While some may be excited for a romantic Valentine’s Day this weekend, many state lawmakers are breaking up and decoupling from recent federal tax changes that are poised to leave states with revenue shortfalls – much like a bad date who forgets their wallet and asks you to pick up the tab.

What Did 2025 State Tax Changes Mean for Racial and Economic Equity?

The results are a mixed bag, with some states enacting promising policies that will improve tax equity and others going in the opposite direction.

Pennsylvania Just Gave Low-Income Workers a Tax Credit Boost. Now It’s Philadelphia’s Turn.

In the same way states are building upon federal tax credits, localities should consider building on state tax credits.

States Can Create or Expand Refundable Credits by Taxing Wealth, Addressing Federal Conformity

Many states already recognize the potential of these credits to boost low- and moderate-income households. Other states should follow suit.

State Earned Income Tax Credits Support Families and Workers in 2025

Nearly two-thirds of states now have an Earned Income Tax Credit (EITC). Momentum continues to build on these credits that boost low-paid workers’ incomes and offset some of the taxes they pay, helping lower-income families achieve greater economic security.

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Which States Expanded Refundable Credits in 2025?

July 24, 2025 • By Neva Butkus

Which States Expanded Refundable Credits in 2025?

Refundable tax credits were a big part of state tax policy conversations this year. In 2025, nine states improved or created Child Tax Credits or Earned Income Tax Credits.

When Did Your State Enact an Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit (EITC) supports millions of workers and families and continues to grow in states and localities across the country. Today, 31 states plus the District of Columbia and Puerto Rico offer EITCs. Local EITCs can also now be found in Montgomery County, Maryland, New York City, and San Francisco, where they benefited 700,000 households in 2023.

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Celebrating 50 Years of the Earned Income Tax Credit

March 28, 2025 • By Neva Butkus

Celebrating 50 Years of the Earned Income Tax Credit

This week, we celebrate 50 years of the federal Earned Income Tax Credit (EITC) and the impact it's had on millions of workers and families. In 2023 alone, the latest year of available data, the federal EITC alongside the refundable portion of the Child Tax Credit lifted 6.4 million people and 3.4 million children out of poverty.

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Advantaging Affluence: A Distributional Analysis of Missouri HB 798’s Uneven Tax Cuts for Wealth and Work

March 28, 2025 • By Aidan Davis, Carl Davis, Dylan Grundman O'Neill, Eli Byerly-Duke, Matthew Gardner

Advantaging Affluence: A Distributional Analysis of Missouri HB 798’s Uneven Tax Cuts for Wealth and Work

Missouri House Bill 798 would reduce personal and corporate income tax rates, fully eliminate taxes on capital gains income from sale of assets, and eliminates the state’s modest Earned Income Tax Credit that assists many working people in lower-paid jobs. HB 798 would radically transform Missouri’s income tax code into a system that privileges income from wealth over income from work, leaving many middle-income families to pay a higher income tax rate than wealthy people living off their investments.