Washington state lawmakers passed legislation to fully fund the Working Families Tax Credit, or Recovery Rebate – worth 10% of the federal Earned Income Tax Credit (EITC) – with bipartisan support. The annual cash rebate worth up to $1,200 will reach 420,000 households across the state. With the passage of House Bill 1297, Washington state also becomes the fifth state in the nation to include eligibility for Individual Tax Identification (ITIN) filers. This achievement is the culmination of thirteen years of advocacy focused on ensuring people have direct, flexible cash to meet their essential needs. And it’s a critical move toward addressing Washington state’s upside-down tax code. It’s an instructive example of how an EITC can work in a state without an income tax and will benefit more than 400,000 households.
Learn more here.
New Mexico’s Gov. Michelle Lujan Grisham signed a bill significantly expanding the state’s Working Family Tax Credit. The legislation expands eligibility for the credit to taxpayers over 18 and who use Individual Taxpayer Identification Numbers (ITINs), and beginning in 2023 the credit will be worth 25% of the federal Earned Income Tax Credit (EITC). Learn more here.
Both New Mexico and Washington were awarded funds from the EITC Pooled Fund to expand their state EITCs.