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A 4395

Requires the commissioner of taxation and finance to conduct a study on the earned income tax credit and to propose changes thereto

2025 Regular Session Introduced by Keith Brown and 5 co-sponsors

Bill A 4395 mandates a study of the Earned Income Tax Credit to propose improvements, aiming to better support low- to moderate-income families financially.

REFERRED TO WAYS AND MEANS
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Bill Summary · A 4395

Summary of Bill A 4395

Bill Information

  • Bill Number: A 4395
  • Title: Requires the commissioner of taxation and finance to conduct a study on the earned income tax credit and to propose changes thereto
  • Status: Referred to Ways and Means
  • Introduced: February 04, 2025
  • Classification: Bill

Purpose and Intent

Bill A 4395 aims to enhance the effectiveness of the Earned Income Tax Credit (EITC) by mandating a comprehensive study conducted by the commissioner of taxation and finance. The primary goal is to evaluate the current structure of the EITC and propose potential changes that could improve its impact on low- to moderate-income families.

Key Provisions

  • Study Requirement: The bill requires the commissioner of taxation and finance to undertake a detailed analysis of the EITC, focusing on its current implementation, effectiveness, and areas for improvement.
  • Proposal for Changes: Following the study, the commissioner is tasked with proposing specific changes to the EITC. These changes may include adjustments to eligibility criteria, benefit amounts, or the overall structure of the credit.
  • Reporting: The findings and proposed changes are expected to be documented in a report, which will be submitted to the relevant legislative committees for review.

Affected Parties

  • Low- to Moderate-Income Families: The primary beneficiaries of the EITC, who rely on this credit to supplement their income, will be directly impacted by any proposed changes.
  • Taxation and Finance Department: The department will be responsible for conducting the study and implementing any changes that arise from the findings.
  • Legislators and Policymakers: The report will provide valuable insights for lawmakers who are involved in tax policy and economic support programs.

Procedural Aspects

  • Current Status: As of February 04, 2025, the bill has been referred to the Ways and Means Committee for further consideration.
  • Related Legislation: This bill is connected to several prior-session bills (A 6604, A 4263, A 5458, A 4909, A 1879) that may have addressed similar issues regarding the EITC.

Conclusion

Bill A 4395 represents a proactive step towards evaluating and potentially reforming the Earned Income Tax Credit in order to better serve low- to moderate-income families. By requiring a thorough study and subsequent proposals for improvement, the bill aims to ensure that the EITC continues to provide meaningful financial support to those who need it most. The outcome of this bill could have significant implications for tax policy and economic assistance programs in the state.

Compiled from official sources — confirm details with the bill’s official record.

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