House Passes Goodrich’s Bill to Raise Earned Income Tax Credit

The Indiana House of Representatives on Monday unanimously advanced State Rep. Chuck Goodrich’s (R-Noblesville) bill to increase the state’s earned income tax credit from 10% to 12%.

Goodrich said this legislation would provide additional tax relief to working Hoosiers struggling to make ends meet. This tax credit is available to low- to moderate-income workers, providing tax relief for an estimated 500,000 Hoosiers.

“Increasing this tax credit could be a great benefit for working families around the state and can play a role in combatting generational poverty,” Goodrich said.

“We want to support those in the workforce, especially as employers continue to experience challenges filling job openings.”

Goodrich said the bill would also couple Indiana to the current federal earned income tax credit. By coupling with the federal tax credit, Hoosiers will be able to benefit from this expanded relief including families with foster children or more than three children.

According to a study by the Tax Foundation, the earned income tax brought 5.8 million people, including approximately 3 million children, out of poverty in 2016.

Goodrich said this legislation builds off House Enrolled Act 1009, which he authored in 2021, that increased the earned income tax credit from 9% to 10%, and put over $10 million annually back into the hands of Hoosiers.

House Bill 1290 now heads to the Indiana Senate for further consideration. For more information about this legislation, visit iga.in.gov