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In the final days of our state session, Montana legislators passed a bill that will strengthen the economic security of thousands of Montana families who work hard for low pay. House Bill 391 will create a state earned income tax credit (EITC) starting in 2019, helping low-income families keep more of the money they earn.

Montana taxes working families living in poverty at a higher rate than almost any other state. Many families working one or more jobs do not earn enough to live on, and struggle to keep up with the rising cost of living and the lingering effects of the economic recession. A state EITC will offset some of these costs and help working families better make ends meet.

Montana’s EITC will build on the federal EITC to further incentivize work, support families and stimulate the local economy. The federal EITC is our nation’s most effective anti-poverty program, lifting more than 6 million people, including 3 million children, out of poverty every year. Our state credit is small, just 3 percent of the federal with a maximum benefit of $188, but this is money that families can put toward vehicle repairs, school supplies or winter heating bills.