• Facebook
  • Twitter
  • LinkedIn
  • Home
  • Contact
  • Blog
Children's Advocates for Change
  • About Us
    • Our Game Plan
    • Board of Directors
    • Staff
    • Fellows
  • Policy & Legislation
  • News & Resources
    • Fact Sheets and Publications
    • Data and Maps
    • Newsletters
    • Media
    • Press Releases
    • Blog
  • Gallery
  • Donate
  • Search
  • Menu Menu
Company News

State Child Tax Credit Activity

State child tax credits, like the federal child tax credit, can have a positive impact on a child’s health, education, and even future earnings. (See prior blog post.)

Illinois House and Senate members introduced legislation this year in the Illinois General Assembly to establish state child tax credits (SB 1444 and HB 3950). The bills, identical, would have created a maximum credit of $700 per child in households with reported income of $75,000 for joint tax filers or $50,000 for other tax filers. Beyond those thresholds, the value of the credit reduces by $24 for each additional $1,000 in income. However,  neither bill made it out of its respective chamber.

Yet, several other states were successful in their efforts to create or expand state child tax credits. To date, 14 states have adopted state child tax credits (some are effective in future years). All but three  of the state credits are refundable, meaning a taxpayer may receive a refund from the state if the value of the credit exceeds the amount the taxpayer owes to the state.

           

Below is a review of the activity seen around the country:

New Credits

Minnesota

The state established a refundable child tax credit with a maximum value of $1,750 for each qualifying child under the age of 18. Effective next year (for payment of 2023 taxes), the maximum credit is available for children in households where joint tax filers make less than $35,000 or less than $29,500 for all other filers.

Oregon

The state established a refundable credit with a maximum value of $1,000 for each qualifying child up to the age of six. Effective next year (for payment of 2023 taxes), the maximum credit is available to households with reported incomes of under $25,000.

Utah

The state established a non-refundable tax credit of $1,000 for each qualifying child aged 1-3. Effective next year (for payment of 2023 taxes), the maximum credit thresholds (after which the credit begins to phase out) are $54,000 for joint tax filers, $43,000 for single or head of household filers, and $27,000 for single filers.

Enhanced Credits

New Mexico

Effective next year (for payment of 2023 taxes), approved legislation increases the state’s child tax credit for the lowest three income levels from $175 to $600, $150 to $400, and $125 to $200. The maximum value credit applies to households reporting income of less than $25,000.

New York

Prior to action this year, the state’s child tax credit was available to children aged 4-17. With this year’s action by the state, the credit will now include children under the age of 4. Eligibility thresholds are $110,000 for joint tax filers, $75,000 for single filers, and $55,000 if married filing separately. The value of the credit is the greater of 33% of the portion of the taxpayer’s federal child tax credit or additional child tax credit attributable to qualifying children or $100 multiplied by the number of qualifying children.

New Jersey

The state doubled the value of its refundable child tax credit to $1,000. The credit applies to children five or younger. The maximum credit value is available to households with reported income of $30,000 or less.

Maryland

Previously the state’s $500 child tax credit was available to taxpayers making $6,000 or less with children under 17 with a disability. The state has now expanded availability to individuals making $15,000 or less and for children under the age of six.

One-Time Rebate

Arizona Governor Katie Hobbs signed a new one-time Child Tax Rebate that provides eligible families $250 per child up to three dependents.

 

 

Sources for post: Center on Budget and Policy Priorities, Institute on Taxation and Economic Policy, Tax Credits for Working Families, The Rockefeller Foundation and various news media reports.
https://www.cbpp.org/blog/momentum-for-new-and-expanded-state-child-tax-credits-earned-income-tax-credits-continued-in
https://itep.org/refundable-credits-winning-policy-choice-2023-child-tax-credit-eitc/
https://www.taxcreditsforworkersandfamilies.org/state/utah/
https://www.rockefellerfoundation.org/blog/a-wave-of-child-tax-credits-is-building-in-the-states/
https://newjerseymonitor.com/briefs/budget-panels-approve-child-tax-credit-expansion/
https://tax.thomsonreuters.com/news/new-mexico-governor-approves-rebates-and-certain-tax-cuts/
https://www.niskanencenter.org/new-mexico-child-tax-credit-expansion-needs-simplification/
https://www.silive.com/news/2023/04/2023-stimulus-update-ny-child-tax-credit-will-be-expanded.html
https://www.kiplinger.com/taxes/minnesota-rebate-checks-and-child-tax-credit

 

 

September 13, 2023
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • Share by Mail
https://childrensadvocates.org/wp-content/uploads/2024/07/CTC-U.S.jpg 725 934 Mitch Lifson https://childrensadvocates.org/wp-content/uploads/2022/03/childrens-advocates-change-logo.png Mitch Lifson2023-09-13 12:57:412024-08-07 08:33:58State Child Tax Credit Activity

Latest News

  • CAFC’s Review of the Governor’s Proposed Fiscal Year 2026 Illinois State BudgetFebruary 24, 2025 - 4:25 pm
  • A Message from the PresidentJanuary 29, 2025 - 2:42 pm

Follow us on Facebook

Connect on Twitter

Tweets by childrensadvocs

Help Us Advocate for our Children

Make A Donation

OFFICE LOCATION

Children’s Advocates for Change
c/o Impact House
200 W. Madison Street, Suite 300
Chicago, IL 60606

Email: info@childrensadvocates.org
Main: 312-361-0101

STAY CONNECTED

  • facebook
  • twitter
  • instagram
  • youtube
  • linkedin

SUBSCRIBE TO US

Get news and events sent directly to your inbox. Send us an email at info@childrensadvocates.org to be added to our mailing list.

ASSOCIATIONS

Children’s Advocates for Change is a proud member the following networks:

Economic Analysis and Research Network

economic-analysis-research-network


Partnership for America’s Children

Notice of Non-Affiliation:
Children’s Advocates for Change is not affiliated, associated, authorized, endorsed by, or in any way connected with Voices for Illinois Children (“Voices”). Voices is an independent advocacy organization that is powered by YWCA Metropolitan Chicago.

© 2023 Children's Advocates for Change is a 501(c)(3) organization | Tax ID number: 88-2843645 Privacy Policy | Designed by JS Interactive, LLC
Scroll to top
Sign Up For News & Updates