Maine lawmakers are considering legislation to provide financial relief to families with young children or dependent adults.
The bipartisan bill would double the current Dependent Exemption Tax Credit, to provide $600 for each child under age six.
Alison Weiss, the communications director for Maine Equal Justice, said the money would only go to families making less than $150,000 a year.
“The bill pays for itself by phasing out the benefit for higher income earners and recaptures those savings,” said Weiss, “so that we’re giving low- and middle-income families a bigger benefit.”
Some opponents of expanded tax credits say they could deter people from working.
Weiss said families often use the funds for diapers, groceries, or gas. A public hearing on the bill is scheduled for Tuesday.
Expanded child tax credits during the pandemic are credited with cutting the national child poverty rate in half.
Studies also show these direct cash payments to families can improve the health of mothers and infants, as well as educational outcomes for children.
Weiss said the money helps ensure families’ basic needs are met.
“It’s also a giant stress reliever,” said Weiss, “to be able to massage your budget to meet whatever need is coming up every month.”
The national Child Tax Credit is due to expire later this year, which is causing states to consider raising their payments.
Maine is one of a dozen states that has its own child tax credit program.
It’s estimated more than 150,000 households currently receive it.
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