Executive Summary
Established as part of the 2015-16 state budget package, the California Earned Income Tax Credit (CalEITC) is a refundable state credit that helps people who earn little from their jobs to pay for basic necessities. An updated research summary from the Budget Center discusses how, by “piggybacking” on the federal EITC, state EITCs like that in California not only help families to better make ends, but also may enhance the various positive impacts of the federal EITC, such as reducing poverty, encouraging work, and potentially creating other long-term benefits for workers and their families.
