Yesterday, Scioto Analysis Principal Rob Moore testified before the Ohio House Ways and Means Committee on a new child tax credit for the state of Ohio.
According to the cost-benefit analyses conducted by Scioto Analysis, the proposed child tax credit is estimated to yield more than $700 million in long-term benefits.
Children raised in poverty frequently suffer from food and housing insecurity, have higher rates of physical and mental health issues, and have higher chances of working low-wage jobs. This child tax credit is estimated to lead to $500 million in higher future wages for the children of recipient families.
Additionally, the proposed child tax credit is projected to save the state $190 million in preventable crime. With more financial stability, families are less likely to incur child protection expenditures, a savings for Ohio to the tune of $120 million. The state is also predicted to save $65 million on future healthcare spending as moving people out of poverty can increase their health outcomes.
Overall, each $1 spent on the earned income child tax credit is predicted to create $6.64 in social benefit. This short-term expenditure proposed by this year’s fiscal EITC is likely to have significant long-term benefits for the recipient children.
These estimates are conservative, though 90% of 10,000 simulations saw a net positive social impact. On the higher end, the estimated benefit of this tax credit is roughly $2 billion.
HB96, the budget bill that includes the tax credit, has been introduced to the Ohio House of Representatives and is currently within the Ohio House Finance Committee. The bill will need to pass through the House, be introduced and passed in the Senate, and signed by Governor DeWine before it can be enacted.
If the bill passes, eligible recipients should expect to receive their benefits after filing taxes in 2026.
You can download Rob’s full testimony here and view the hearing at minute 36:27 here.
You can read Scioto Analysis’ full memo results here.