Tax Credit Availability

Joint Budget Committee. The bill makes similar changes to both the family affordability tax credit and the earned income tax credit. The bill modifies how the extent of the availability of both tax credits is determined. Under current law, the availability of both tax credits is determined by the compound annual growth rate between actual state revenue in state fiscal year 2024-25 and projected state revenue for the fiscal year that begins during the relevant state income tax year. Under the bill, the availability of both tax credits is determined by the compound annual growth rate between state revenue for state fiscal year 2024-25, as projected in the March 2024 office of state planning and budgeting revenue forecast, and projected state revenue for the fiscal year that begins during the relevant state income tax year.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)