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ZACK GUZMAN: Well,
in the, pandemic

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we've already seen
one big program

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at both the state
and federal level

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to help low and
middle-income families.

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That would be earned
income tax credits.

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President Biden did so
earlier with his plan

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here to help families.

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And now we're seeing more states
follow suit with individual

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earned income tax
credits that have been

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rolled out at the state level.

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For more on that,
I want to bring

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I'm Yahoo Finance's Denitsa
Tsekova in Your Money

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this time around.

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And Denitsa, what are we seeing?

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DENITSA TSEKOVA: So
yeah, exactly, we've

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already seen some of the effects
of those federal state credits.

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But there are actually many
states joining the movement.

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Just this year, 10
states have increased

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or enacted at the state level
earned income tax credit.

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That's only one
of the tax credits

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that the Biden
administration expanded.

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We've also talked a
lot about the CDC.

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But this one in particular has
been increased in 10 states.

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Also the District of
Columbia and Delaware

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are also joining the movement.

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So later this year, we
may see even more states

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increasing their credits.

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The expansion of
those states credits'

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could help over 1 million low
and middle-income families.

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Those credits are
targeted when it

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comes to income distribution.

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So it's really the lower
part of the income ladder

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that is benefiting from them.

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The changes are different.

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Some states are
seeing an increase

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in the amount of the credit.

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Other states are
allowing more people

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to be eligible for the credit.

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And then there are other states
who are enacting the credit

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for the first time, of course.

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The type of increases we see is,
like for example in Colorado,

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the credit amount is
increased from 15% to 25%.

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This is based on
the amount of credit

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they received on
the federal level.

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We see similar rates
in Connecticut.

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That is boosting the
credits from 23% to 30%.

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And then the
District of Columbia

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is where we're seeing the
most generous expansion.

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If approved, the credit
will be boosted to 100%.

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And families there will
actually get thousands

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of dollars more in relief.

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This will be the most generous
credit in the country.

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JULIA LA ROCHE:
What can you tell us

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about what's happening
to the earned income tax

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credit on the federal level?

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DENITSA TSEKOVA:
So as I've said,

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that credit was
actually expanded

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in March, two big changes.

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It was made fully refundable,
meaning the taxpayers

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receive a refund,
even if the credit

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exceeds their total tax bill.

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And then the other big change
is that the legislation extended

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the credit to workers
without children at home,

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making many more families
eligible for the credit.

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And those changes, they were
in effect only for 2021.

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But the Biden
administration is looking

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to extend them even further
and make them permanent.

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This is, of course, part
of their $3.5 trillion

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infrastructure package that
the Democrats are trying

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to pass through reconciliation.

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And lastly, those
credits are considered

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reasonably affordable.

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And in many states, a 10%
increase will be less than 1%

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of the state budget.

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So we may see even more states
joining the federal movement.

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JULIA LA ROCHE: So this is
something we'll be watching.

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Thanks, Denitsa, appreciate you.