2006 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Callahan
EITC Mini-Grants

Item 340 #1h

Item 340 #1h

First Year - FY2007 Second Year - FY2008
Health And Human Resources
Social Services, Department of FY2007 $450,000 FY2008 $450,000 GF

Page 303, line 21, strike "$35,896,286" and insert "$36,346,286".
Page 303, line 21, strike "$34,896,286" and insert "$35,346,286".
Page 303, after line 47, insert:
"3.  Out of this appropriation, $450,000 the first year and $450,000 the second year shall be provided to the Virginia Community Action Partnership to support the Virginia Earned Income Tax Coalition and provide grants to local organizations to provide outreach, education and tax preparation services to citizens who may be eligible for the federal Earned Income Tax Credit."

(This amendment provides funding to support and expand efforts to help eligible Virginia citizens to claim the federal Earned Income Tax Credit (EITC) on their federal tax returns through the Virginia Earned Income Tax Coalition. A 2005 study by the Joint Legislative Audit and Review Commission (JLARC) found that many Virginians could be eligible for the federal Earned Income Tax Credit, which is a refundable tax credit designed to reward low-income families for working. Families who worked and earned less than $35,000 in the most recent tax year (2004) could receive between $2,600 and $4,300 based on their income, marital status and number of children. Families can receive the EITC even if they earn too little to owe any taxes. However, they must file a federal tax return to claim the credit. The JLARC report estimated that up to 66,000 families in Virginia who receive social service benefits could have claimed about $170 million had they taken advantage of the EITC. The report also recommended that the Commonwealth continue efforts to conduct outreach activities with families who may be eligible for the EITC and recruit volunteers who can provide tax preparation support to those filers seeking to claim the credit. Funding will be used to assist 18 volunteer coalitions and establish up to four new coalitions.)