This year, 14 states are providing their own child tax credits, supplementing the credit offered by the federal government. While several have recently expanded previous versions of their child tax credits, three states—Minnesota, Oregon, and Utah—have enacted brand new ones in 2023. These new creations are generally less generous than the federal child tax credit that was briefly expanded in 2021 as a part of the American Rescue Plan. Nevertheless, these measures open up a new frontier in state action intended to make the cost of raising children more affordable.

“I’ve told my team, ‘This might be the single biggest impact of anything we did while governor,’” said Minnesota Governor Tim Walz about his state’s child tax credit, which he said could reduce child poverty in the state by 33 percent. “I don’t even know if we can categorize all of the positive impacts that it will make down the road.”

The amount of the Minnesota credit is the most generous of any state to date, offering up to $1,750 for each child up to age 18 in qualifying households. The income threshold to receive the full amount of the credit is $29,500 for one parent, or $35,000 for married joint filers, although families may still receive a portion of the credit up to a certain threshold. The Walz administration had previously estimated that nearly 300,000 households, including more than 500,000 children, would qualify for the credit. Walz told me that, thus far, the credit has been claimed for nearly 360,000 children, with an average benefit of $2,071. (The new child tax credit was just one of several progressive priorities approved by the Minnesota legislature last year.)

Meanwhile, Oregon’s new child tax credit is available for households with children under the age of 6, offering up to $1,000 per child. Like its Minnesota counterpart, it is available for parents........

© New Republic