Earned Income Credit

EICKentucky should enact a state Earned Income Tax Credit (EITC) that piggybacks on the federal EITC so that more working parents can cover their family’s basic needs.

The federal EITC is credited for keeping more children out of poverty in the United States than any other program as it offers parents temporary support to stay out of poverty. It can only be claimed by people who earn income through work, and it has increased employment levels and decreased use of welfare assistance among single parents. People who receive the EITC work and pay taxes.

Research shows a direct link between families receiving additional income through the federal EITC and the improvement of their children’s math and reading comprehension, as well as increasing their work and income when they become adults. Half of states in the U.S. have gone one step beyond the federal EITC by establishing a state EITC, and Kentucky should do the same.

Our Work

  • Adopting a state EITC is a priority on the Blueprint for Kentucky’s Children. Kentucky Youth Advocates leads an active team of Blueprint partners working to promote a state EITC. Contact Stephen Lin at slin@kyyouth.org for more information or if you would like to join the work-team.
  • Kentucky Youth Advocates worked with Senator Morgan McGarvey to file SB 155 to enact a state EITC during the 2014 Kentucky General Assembly.
  • Click here to view legislative fact sheets for the county or counties individual legislators represent.