SB 1158 and HB 1331, if passed, would create a Working Floridians Tax Rebate program within the Department of Revenue
Families and workers with moderate to low incomes, especially the 40 percent of households in Florida earning less than $50,000 annually, bear a significant tax burden as a result of Florida’s heavy reliance on sales and excise taxes. Florida's tax code is the most regressive in the United States. The state’s upside-down tax code also exacerbates racial inequity because Floridians with low income are more likely to be people of color. While often marketed as a “low tax” state, the truth is that Florida’s tax system favors those who make the most, overburdens those who earn the least, and exacerbates income inequality.
We can help build more prosperous communities and strengthen future generations by passing a state-level Earned Income Tax Credit (EITC). Moreover, 68 percent of likely Florida voters support enacting a state EITC. This policy is a proven way to increase economic stability and opportunity, boost local economic activity, and improve child and community well-being.
In 2023, approximately 2.1 million Floridians received over $5.5 billion thanks to the federal EITC, with an average credit of nearly $2,700 per household. A WFTR would provide an additional boost to EITC recipients. The federal EITC is a common-sense tax credit that helps people with low income make ends meet, which benefits their families, communities, and local economies. By design, the EITC only benefits people who work. Workers receive a credit equal to a percentage of their earnings up to a maximum credit. Both the credit rate and maximum credit vary by family size, with larger credits available to families with more children. Overall, the EITC is one of the nation’s most effective tools for reducing poverty and countering income inequality.
To further build on the success of the federal EITC, 31 states, D.C., and Puerto Rico, have enacted their own version of the EITC pegged at a percentage of the federal credit. The Working Floridians Tax Rebate (WFTR) Program would allow Florida residents who receive the EITC to claim a tax rebate, from Florida’s Department of Revenue, equal to 20 percent of the value of their federal EITC.
For the 2025 session, Senator Shevrin Jones and Representative Wallace Aristide have introduced bills (SB 1158, HB 1331) to create the “Working Floridians Tax Rebate” program and provide EITC recipients a rebate set at 20 percent of their federal credit. A tax rebate of this size would put an estimated $1.1 billion back in people’s pockets, with an estimated average rebate of $500 per household. The WFTR would also increase people’s disposable income and pump $862 million each year into the local economy.
We support legislation that would establish a state EITC or Working Floridians Tax Rebate.
