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Connecticut Expands Earned Income Tax Credit

Courtesy of Pixabay

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.

As WSHU Public Radio’s award-winning senior political reporter, Ebong Udoma draws on his extensive tenure to delve deep into state politics during a major election year.