Earned Income Tax Credit

State Treasurer Richard Moore has advocated for the implementation of a state Earned Income Tax Credit (EITC) to help North Carolina’s working families. Moore, who was the first statewide elected official to call for an increase in the state’s minimum wage, has said that the state EITC would build on the success of the minimum wage increase and help more than 700,000 North Carolina families.

The federal EITC was created in 1975 to offset the effects of federal payroll taxes on low-income families. It is administered through the personal income tax and is based on the individual’s income, filing status and number of dependents, encouraging work and responsibility. Research shows that the credit has contributed to a significant increase in labor force participation among single mothers and that many recipients use the refund to pay off debt, invest in education or pay for housing. More than 20 states, including the District of Columbia, have enacted a state EITC.