In June 2015, California became the 26th state to pass its own Earned Income Tax Credit (EITC). The new credit, worth as much as $2,653 per year for families with low earned income, supplements the federal EITC. Families will start receiving the credit in 2016 on income they earned in 2015, and approximately 2 million residents are expected to benefit. The average qualifying household is expected to receive $460 per year, for a total cost to California of $380 million for tax year 2015.
