Gov. Ned Lamont has announced he will introduce a plan in his next state budget proposal to increase Connecticut”™s Earned Income Tax Credit (EITC) from the current rate of 30.5% of the federal credit to 40%.
In a statement released by Lamont”™s office, the governor insisted that “increasing the rate will provide an additional $44.6 million in state tax credits to approximately 211,675 qualifying low-income households, above the amount they are currently receiving under the program. Typically, families with children receive more than 95% of all EITC dollars.”
Lamont”™s office added that increasing the rate to 40% will make Connecticut among the top five states in the nation with the largest EITC rates and would be higher than the rates of Connecticut”™s neighboring states Massachusetts (30%), New York (30%) and Rhode Island (15%).
