Gov. Lamont Proposes $44.6 Million Tax Relief Program Enhancement

CONNECTICUT — Gov. Ned Lamont unveiled a legislative proposal that would provide $44.6 million in tax relief to more than 211,000 low-income households.

Lamont wants to increase the state's earned income tax credit from 30.5 percent to 40 percent.

"Increasing this tax credit is one of the most impactful things we can do to target direct relief to low-income workers who are providing for their families, especially those with children,” Lamont said in a statement. “Numerous studies have shown that the EITC is one of the best anti-poverty tools we can use because it encourages work, boosts economic stability, and uplifts generations to come."

The refundable state income tax credit mirrors a federal tax credit policy. The eligibility requirements are:

• No dependents: $16,480 for individuals and $22,610 for married filing jointly
• One dependent: $43,492 for individuals and $49,622 for married filing jointly
• Two dependents: $49,399 for individuals and $55,529 for married filing jointly
• Three dependents: $53,057 for individuals and $59,187 for married filing jointly

A married family with two qualifying children would receive a state tax credit of up to $1,880 under the current rate; that would increase to $2,465 under Lamont's proposal.

Increasing the rate to 40 percent would put Connecticut among the top five states for largest earned income tax credit rates. The average rate is 22 percent.

Lamont will deliver his annual budget address to the General Assembly on Feb. 8, which is when he will unveil full legislative proposals.