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Reps. Skindell, Crawley give sponsor testimony on providing modifications to the Earned Income Tax Credit

Bill offers 10% refundable tax credit for working families
January 31, 2020
Michael J. Skindell News

COLUMBUS— State Reps. Erica C. Crawley (D-Columbus) and Michael Skindell (D-Lakewood) provided sponsor testimony on Tuesday before the House Ways and Means Committee for House Bill (HB) 114, which would modify the State’s Earned Income Tax Credit (EITC), making it partially refundable.

“The EITC was meant to provide middle to low income families with a tax credit to alleviate or reduce some of the financial stress and insecurity that accompanies poverty by offering a small income increase,” said Crawley. “The supplemental income typically goes to housing, transportation, food and other bills.”

HB 114 would provide a 10 percent tax credit for EITC recipients in addition to a 20 percent nonrefundable credit. These modifications come after the changes to EITC in HB 62, which increased EITC from 10 percent to 30 percent but left it nonrefundable, offering no boost for working families. 

“I have been advocating for a refundable Working Families Tax Credit for more than a decade as it is recognized as one the largest anti-poverty measures in the United States, while promoting and supporting work and families,” said Skindell.  He added:  “The fact that Ohio’s EITC is not refundable makes Ohio’s tax credit one of the weakest of the 30 states with an EITC.”

The Federal EITC is currently refundable and in 2018 reduced the burden of poverty for 16.5 million people and lifted nearly 5.6 million people out of poverty, according to the Center on Budget and Policy Priorities.