States are Boosting Economic Security with Child Tax Credits in 2023
Summary
Child Tax Credits (CTCs) are an effective tool to bolster the economic security of low- and middle-income families and position the next generation for success. When designed well, they counteract some of the deficiencies in the federal CTC and lead to meaningful reductions in child poverty and deep poverty.[1]
More state lawmakers are choosing to help families in this way: in 2024, 14 states will provide Child Tax Credits, many of which are targeted to those who most need them and made refundable so that children in the lowest-income families are not excluded from the full benefits. Together these credits constitute an annual multibillion-dollar investment in the next generation. As more states consider creating or strengthening these credits, lawmakers should design them for maximum impact.
Source: Institute on Taxation and Economic Policy (2023). States are Boosting Economic Security with Child Tax Credits in 2023.