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Lawmakers trying to bring back earned income tax credit
DENVER (AP) — Colorado lawmakers are trying to bring back the state earned income tax credit for low-income families, which evaporated in 2002 when the economy tanked.
Democratic Rep. John Kefalas of Fort Collins said Thursday the credit would be based on a percentage of the federal earned income tax credit.
Kefalas estimates eligible Colorado families would get an average of about $450 next year and the following year under his bill.
Previously, the program was funded by tax-surplus refunds, but those refunds are on hold under a voter-approved plan to help state government recover from the downturn.
Kefalas is proposing that the state finance the tax credit with unused federal aid for needy families and with funds from the unemployment insurance program until 2011.
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