The Case for Extending State-Level Child Tax Credits to Those Left Out: A 50-State Analysis

The current federal Child Tax Credit (CTC), which provides up to $2,000 per child, is designed to provide an income boost to parents or guardians of children and other dependents. However, many low-income families do not receive the full benefit of the federal credit due to an earnings requirement and lack of full refundability for families with low incomes. A state-level CTC could redress some of the shortcomings of the current federal credit. By eliminating the requirement for earnings, along with the phase-in, and making the credit fully refundable, low-income families would be eligible for the full benefit, ultimately reducing child poverty.