Earned Income Tax Credit Data Sharing

The act requires the department of revenue (department) to share the contact information of a resident individual who claimed the earned income tax credit or the child tax credit, or both, on or before July 1 of each year with the department of early childhood, the department of health care policy and financing, the department of human services, the department of local affairs, the department of public health and environment, the department of corrections, the department of labor and employment, the behavioral health administration, and the department of higher education if requested. The information disclosed remains confidential, and the recipient departments may only use it for the purpose of benefit outreach , including sharing information about how to enroll, the information necessary to enroll, and, when possible, assisting with the application process.

The act also requires the department to create a pilot program to assist up to100,000 resident households in filing or amending a tax return and claiming the federal and state earned income tax credit or child tax credit (credits) for up to 2 prior tax years. As resources allow, the department must select and collaborate with a third-party entity to identify resident households who may be eligible for the credits, instruct these resident households about the availability of the pilot program, develop a mechanism to share wage data, and develop a mechanism for resident households to digitally consent to having wage data shared with the third-party entity. As resources allow, the third-party entity will create a prefiled form for each resident individual who may be eligible for the pilot program. The pilot program must begin no later than August 15, 2025. The third-party entity shall secure the information shared pursuant to the pilot program.

The third-party entity must report to the members of the senate and house finance committees no later than December 15, 2025, which report shall include the number of prefiled federal income tax returns completed, the number of each tax credit claimed as a result of the pilot program, an estimate of the amount of money claimed through the pilot program, the number of returns supported through information shared pursuant to the pilot program, and recommendations for improving and continuing the pilot program.

A state, local, or tribal government (government) may use any data in its possession to automatically enroll, or send notice of potential eligibility to enroll to, any individual or household regarding any benefit program. A government may request an individual or household attest to receiving support from a benefit program or otherwise provide proof of the individual's or household's enrollment in any benefit program with the same or more restrictive enrollment requirements as evidence to enroll an individual or household in any other benefit program.

The act appropriates $167,585 from the general fund to the department for fiscal year 2024-25 to implement the act.

APPROVED by Governor May 14, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)