Income tax

Senate approves Democrats’ bill creating tax credit for low-income earners

The proposed $74 million plan would give the average Arizona family $128 a year.

PHOENIX — A Democratic proposal that creates a new tax credit for low-income Arizona workers has passed the Arizona Senate.

Democratic Sen. Sean Bowie’s proposal won support from 10 of 16 Senate Republicans and 11 Democrats voting on Wednesday.

Ducey included the tax credit in last month’s executive budget proposal. It was the first time in his eight years of tax cuts that he offered a benefit for low-income Arizonans.

The $74 million plan would give the average family $128 a year. A family with three children would earn over $300 a year. The measure now heads to the House for consideration.

The earned income tax credit proposal mirrors the federal credit, which provides refunds to the working poor. The proposal would benefit about 577,000 taxpayers, according to the governor’s office.

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