• The increased credit amount does not fully offset the tax increase on larger families that originates with full conformity with the federal tax code.
• The credit is not targeted to the larger middle-income families that are affected by conformity. Though the total cost of the revised child tax credit ranges from $67.3 million to $71 million, an estimated 38 percent of its benefits flow to the top 20 percent of earners, who are the least likely to face a tax increase due to conformity.
• Those families with the highest earners will generally experience tax cuts even in the absence of the child tax credit, largely due to the deep income rate cuts in House Bill 463.
• Because the child tax credit is nonrefundable, families that pay sales, property, and other taxes but don’t have a large income tax bills are unable to claim much of its value.

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