Expand the State Earned Income Tax Credit (EITC)
The federal Earned Income Tax Credit is one of the most successful anti-poverty programs in the country. The EITC is a refundable tax credit provided as a work incentive to low-income Nebraskans. To receive the EITC, individuals must work and file a tax return. The Nebraska legislature instituted a state EITC in 2006 at 8% of the federal EITC. Recognizing its critical impact, the legislature increased it to 10% in 2007.

The vast majority of EITC dollars go to working families with children who have earnings below $35,000 a year. The low administrative cost, built-in work incentive, and focus on families with children make the EITC appealing to legislators across the political spectrum. The EITC can provide an important source of income and tax relief to low-income families.

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