COLUMBUS— State Reps. Michael Skindell (D-Lakewood) and Dani Isaacsohn (D-Cincinnati) today introduced legislation to strengthen the State’s Earned Income Tax Credit (EITC), making it partially refundable.
The refundable federal Earned Income Tax Credit (EITC) is the nation’s most effective anti-poverty program. The federal EITC in 2018 reduced the burden of poverty for 16.5 million people and lifted nearly 5.6 million people out of poverty, according to the Center on Budget and Policy Priorities.
Ohio implemented a state EITC in 2013 and expanded the credit in 2019. Low to middle-income Ohioans are eligible for the state EITC if they receive the federal credit and have earned income within the set guidelines. Unlike the federal EITC, the state credit is not refundable, making it one of the weakest in the nation. The introduced bill provides that 10 percent of the tax credit be refundable for state EITC recipients.
“By not offering a refundable Earned Income Tax Credit in Ohio, we are behind most states in the nation,” said Rep. Skindell. “Making the EITC partially refundable would be a significant start to lessening the burden on our working families.”
Making the state EITC refundable would boost family income and assist lower-income communities by stimulating local economies.
“This is about getting more money in the pockets of the working people who need it the most. It was a good policy when Republicans first came up with it, and it is a good policy now," said Rep. Isaacsohn.
The legislation awaits an assignment to a House Committee.