State EITC in North Carolina: Implemented in the Nick of Time

October 2010

KEY FINDINGS:

• Recently available data from the N.C. Department of Revenue show that in 2008, the first
year North Carolina’s state Earned Income Tax credit was in place, more than 800,000
North Carolinians claimed the credit.

• The state EITC was worth 3.5 percent of the federal EITC to a family claiming the credit in
2008. In that year, the state EITC put $59 million into the pockets of low-income working
families, and it boosted the total combined value of the state and federal credits to $1.8
billion.

• In addition to providing additional resources to help low-income working families meet their
basic needs, the state EITC stimulates local economies because these dollars are likely to be
spent quickly and close to home.