About 200,000 low and moderate income families in Connecticut just got a boost due to an increase to the state’s earned income tax credit.
The state's tax credit increased from 23% to 30.5% of an addition to the federal refundable income tax credit.
Governor Ned Lamont said alongside an increase to the state’s minimum wage – which will go from $13 an hour to $15 an hour in less than two years – this change will help make Connecticut a bit more affordable for the working poor.
“It’s a tax cut for working families, middle class families, who are paying enough... and represents another $500 a year that they can put in their pocket. And can help take care of that kid, help take care of some basic utility needs — something to live on,” Lamont said.
The tax credit is included in the state’s two-year budget that was approved in the spring.
State officials anticipate that it would result in an additional $40 million a year paid out to eligible households.
