background_fid.png
Inform, Entertain, Inspire
Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

Lawmakers consider increase to Indiana earned income tax credit

Lauren Chapman
/

A state lawmaker says his bill to increase Indiana’s earned income tax credit would be a huge boost to addressing generational poverty.

The credit is meant for lower-income people and families. Income limits are based on the number of children you have.

To be eligible, families with two or more children can earn up to about $49,000. And right now, those families could get a credit on their state taxes of just over $600.

Under Rep. Chuck Goodrich’s (R-Noblesville) bill, HB1290, that would go up to more than $900.

“So, we know that the money that is returned from their taxes will actually go right back into the economy,” Goodrich said.

READ MORE: The Earned Income Tax Credit: How Does It Work?

Join the conversation and sign up for the Indiana Two-Way. Text "Indiana" to 73224. Your comments and questions in response to our weekly text help us find the answers you need on statewide issues and throughout the legislative session.

Kathryn Williams represents Lafayette Urban Ministry, which helps low-income Hoosiers. She said the credit makes a huge difference in people’s lives.

“One of the people could afford to buy a used car so she could continue working as a home health aide," Williams said. "Somebody else was able to afford to move out of a home that had bad rental conditions, to move into a better place.”

According to the Urban Institute, Indiana is one of 31 states with an earned income tax credit (in addition to the federal EITC). Only five states have a credit lower than Indiana's current level.

A House committee heard testimony on the bill Wednesday but did not vote on it.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

Copyright 2023 IPB News. To see more, visit .

Brandon Smith is excited to be working for public radio in Indiana. He has previously worked in public radio as a reporter and anchor in mid-Missouri for KBIA Radio out of Columbia. Prior to that, he worked for WSPY Radio in Plano, Illinois as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, Missouri, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.