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In neighboring Indiana, the state Senate approved a bipartisan plan to give a $500 refundable tax credit to families with an infant.

If passed, the measures would mark the first time a Republican-controlled state has implemented a refundable child tax credit. Advocates view that type of credit as key because it with little or no income tax liability.

State interest in creating or expanding child tax credits boomed after the pandemic-era expansion of the federal child tax credit delivered cash directly to millions. That move quickly lifted millions of children out of poverty. But the expanded tax credit expired in 2021 ÃÛÁÄÖ±²¥” leading to a in 2022.

have some child tax credit programs. But so far, all 11 states with refundable credits are led by Democratic governors and legislatures.

ÃÛÁÄÖ±²¥œObviously, itÃÛÁÄÖ±²¥™s great to see more places are interested in it, but I think it really comes down to the design of them and whoÃÛÁÄÖ±²¥™s included and whoÃÛÁÄÖ±²¥™s excluded,ÃÛÁÄÖ±²¥� said Megan Curran, policy director at Columbia UniversityÃÛÁÄÖ±²¥™s Center on Poverty and Social Policy. ÃÛÁÄÖ±²¥œThatÃÛÁÄÖ±²¥™s going to determine how effective they are at the end of the day.ÃÛÁÄÖ±²¥�

In Indiana, lawmakers want to include parents who recently adopted a child or those with children under the age of 1.

Even those with no income could qualify for the refundable credit. As proposed, eligibility would top out for families with an adjusted gross income thatÃÛÁÄÖ±²¥™s 720% of the federal poverty level ÃÛÁÄÖ±²¥” about $191,000 for a family of three.

The legislationÃÛÁÄÖ±²¥™s Republican sponsor, state Sen. Greg Walker, said the program could be expanded over time to include older children.

ÃÛÁÄÖ±²¥œI think itÃÛÁÄÖ±²¥™s ÃÛÁÄÖ±²¥” pardon the pun ÃÛÁÄÖ±²¥” a baby step to introduce a credit for a newborn,ÃÛÁÄÖ±²¥� he said. ÃÛÁÄÖ±²¥œI donÃÛÁÄÖ±²¥™t think anyone disputes ÃÛÁÄÖ±²¥¦ all the costs associated with bringing a new baby into the world.ÃÛÁÄÖ±²¥�

Like the federal tax credit, IndianaÃÛÁÄÖ±²¥™s would empower parents to spend the money however they choose. Aside from helping thousands of families cover escalating costs of living, Walker said it also would provide relief for lower-income families who pay a higher proportion of their earnings in taxes because of the stateÃÛÁÄÖ±²¥™s .

While the state Senate unanimously passed the bill, Walker said details of his proposal could change during the legislatureÃÛÁÄÖ±²¥™s budget process. As proposed, the infant tax credit is expected to cost the state about $34 million per year.

ÃÛÁÄÖ±²¥œIt would be another $34 million in circulation in the hands of consumers that are not sitting on the money,ÃÛÁÄÖ±²¥� he said. ÃÛÁÄÖ±²¥œThis is not going into a 401(k) account.ÃÛÁÄÖ±²¥�

Bipartisan support for child tax credits

In announcing his proposal, OhioÃÛÁÄÖ±²¥™s governor said there was bipartisan agreement across the country on the merit of investing in working families.

ÃÛÁÄÖ±²¥œThis is not a liberal or a conservative proposal,ÃÛÁÄÖ±²¥� DeWine said in a in early February. ÃÛÁÄÖ±²¥œ ÃÛÁÄÖ±²¥¦ This will be a significant amount of money and it will help these families move forward with their lives however they want to live those lives.ÃÛÁÄÖ±²¥�

Discussions surrounding the federal tax credit also received bipartisan support. During the presidential campaign, then-Sen. JD Vance . More than two-thirds of U.S. House Republicans supported legislation expanding the credit last year.

But Senate Republicans , saying it could disincentivize work and favor Democrats in the November election.

DeWineÃÛÁÄÖ±²¥™s proposal is estimated to cost $450 million per year. The tax credit would apply to families with children under age 7. Individual parents who earn $2,500 per year would qualify for a portion of the credit, with a minimum income of $22,500 required to qualify for the full $1,000 credit. The threshold is an apparent effort to incentivize work. In budget documents, the governorÃÛÁÄÖ±²¥™s office noted that any parent working full time at a minimum wage job would qualify for the full credit.

The credit, which phases out for higher incomes, would not be available to individuals earning more than $69,000, or married couples earning $94,000 or more per year.

Last week, from Democratic lawmakers, though some Republicans seemed skeptical of the idea.

In , the progressive advocacy group Policy Matters Ohio noted that the $2,500 income threshold excludes many of the stateÃÛÁÄÖ±²¥™s poorest parents. The organization said that fact undercuts the governorÃÛÁÄÖ±²¥™s claim the credit is targeted for those with the most need.

Still, that group, along with many other advocacy organizations, are supporting DeWineÃÛÁÄÖ±²¥™s effort.

ÃÛÁÄÖ±²¥œThis is the type of tax relief that families are demanding on both sides of the aisle,ÃÛÁÄÖ±²¥� said Lynanne Gutierrez, president and CEO of Groundwork Ohio, a statewide advocacy group for young children.

Gutierrez pointed to research showing the struggles of many Ohio families: found that more than a third of Ohio parents with children under 5 reported serious problems paying rent or mortgages, and nearly half said they were struggling to pay their credit card bills.

The previous expansion of the federal tax credit helped millions of American families cover the basics: U.S. showed families largely spent their credits on child care, rent, utilities, food and school expenses.

ÃÛÁÄÖ±²¥œI am continuously surprised about how little money, relatively speaking, can really break a family or send them kind of spiraling,ÃÛÁÄÖ±²¥� Gutierrez said.

Which families benefit

As Indiana and Ohio pursue refundable credits, other states with Republican legislative majorities are moving forward with nonrefundable child tax credits. While nonrefundable credits can reduce how much a filer owes in taxes, refundable credits give cash through returns ÃÛÁÄÖ±²¥” even to those who owe little or no income tax.

As part of a both chambers in Utah earlier this month approved expanding eligibility for the stateÃÛÁÄÖ±²¥™s nonrefundable child tax credit. The credit currently applies to families with children at least 1 year old and under 5 years old. The expansion would including infants. Republican Gov. Spencer Cox has previously expressed his willingness to support legislative tax cuts, the

And last month, GeorgiaÃÛÁÄÖ±²¥™s GOP-controlled state Senate of $250 for each child under age 7.

estimated to cost the state about $180 million annually, would expand an existing tax credit for child care expenses and provide tax benefits for businesses that offer child care for workers. The measure was championed by Republican Lt. Gov. Burt Jones, who is considering a run for governor.

ÃÛÁÄÖ±²¥œWe believe that families shouldnÃÛÁÄÖ±²¥™t have to choose between having a career and being a parent,ÃÛÁÄÖ±²¥� state Sen. Brian Strickland, a Republican who sponsored the bill, in Atlanta.

To proponents of child tax credits, these moves mark encouraging ÃÛÁÄÖ±²¥” if not perfect ÃÛÁÄÖ±²¥” progress on the issue.

The nonrefundable programs often donÃÛÁÄÖ±²¥™t help the lowest-income families, who may earn too little to owe income taxes. ThatÃÛÁÄÖ±²¥™s particularly important because most states have regressive tax policies that disproportionately tax lower income families, said Aidan Davis, the state policy director at the Institute on Taxation and Economic Policy, a liberal tax policy nonprofit.

Similarly, some of the refundable tax credit proposals could be strengthened, she said.

The Ohio plan, for instance, has a minimum income threshold to qualify, ostensibly a measure to incentivize work. But Davis said that can exclude the children of parents with disabilities, those who have been laid off, or those who canÃÛÁÄÖ±²¥™t afford child care to work.

Despite design imperfections, Davis said, the interest and support in conservative-leaning states is an ÃÛÁÄÖ±²¥œincredible development.ÃÛÁÄÖ±²¥�

ÃÛÁÄÖ±²¥œI think conversations need to continue around how to best design them to make sure that they reach the populations and the kids most in need,ÃÛÁÄÖ±²¥� she said. ÃÛÁÄÖ±²¥œBut that being said, I think these are great starting points for conversation.ÃÛÁÄÖ±²¥�

Stateline reporter Kevin Hardy can be reached at .