Iowa Earned Income Credit Not Increasing In 2011

It looks like the Iowa Earned Income Credit will not be increasing in 2011 after all.  Governor Branstad has vetoed the increase in the EIC.  The proposed increase was part of a budget bill passed by the legislature in late June.  The proposal would have increased the state EIC to 10% of the federal EIC (up from the current 7%).  The governor approved the other tax provisions in the bill — you can click here to read about those provisions.

Radio Iowa has more details on the governor vetoing the increase to the EIC.

Prior Dinesen Tax Times coverage of the EIC issue can be found here.