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Earned income tax credit increase unanimously clears House

By Brandon Smith

Posted February 7, 2023

Rep. Chuck Goodrich (R-Noblesville), left, looks on as Rep. Cherrish Pryor (D-Indianapolis) speaks on the House floor on Monday about their bill to increase the state's earned income tax credit.

Rep. Chuck Goodrich (R-Noblesville), left, looks on as Rep. Cherrish Pryor (D-Indianapolis) speaks on the House floor on Monday about their bill to increase the state's earned income tax credit. (Brandon Smith/IPB News)

Lower-income Hoosiers would get a boost on a state tax credit under legislation unanimously approved by the Indiana House Monday.

The legislation, HB 1290, doesn’t just increase the amount of the Indiana earned income tax credit by, in some cases, more than a hundred dollars. It also better aligns the state credit with the federal one.

That means married couples who jointly file their taxes will have a higher income limit to be eligible. And taxpayers with three or more dependents will now be eligible for a greater credit.

Rep. Chuck Goodrich (R-Noblesville) called his bill a simple one.

“But it makes a huge difference to almost 500,000 Indiana Hoosier families,” Goodrich said.

READ MORE: Lawmakers consider increase to Indiana earned income tax credit

Rep. Cherrish Pryor (D-Indianapolis) said the tax credit acts as a safety net.

“One of the best ways that we have in this country that we can single-handedly lift people out of poverty,” Pryor said.

The bill now heads to the Senate.

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