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The Early Educators Tax Credit (EETC)

 
In 2011, BTWIC filed legislation proposing a tax credit for early educators. Although we were unsuccessful in passing this bill, we are continuing to push for greater state investment in the early education and care workforce through the Put MA Kids First Coalition. For more information, please visit www.putmakidsfirst.org
 

About the Bill

The Early Educators Tax Credit (EETC), H4322, (formerly S1324/H2568), is a refundable tax credit specifically designed to increase early education workforce retention. Eligible early educators would receive a credit (ranging from approximately $200 -$600) for completion of a Bachelor’s or Associate’s degree. The estimated cost to the state of Massachusetts is $7.5 million. The credit would be subject to review after five years by the Department of Revenue in order to assess its impact and necessity. 
 

How the EE-EITC Benefits the State of MassachusettsM

Increased retention of the early education workforce, which improves the continuity and quality of care for young children.

Evidence base: Other states have used stipends or tax credits to strengthen their early education workforce. The North Carolina Child Care WAGE$ program provides stipends to early educators, which has resulted in a 50% decrease in turnover among participants compared to the statewide average for early educators. [1]

Improved financial stability of low-income early educators, who channel funds back into the state economy.

Evidence base: In a study of families in Massachusetts and Illinois receiving the federal Earned Income Tax Credit, 89% spent a portion of their credit back into the local economy, on items such as groceries, child expenses, and car repair. [2]

Decreased state spending in the future, as a result of a stronger early childhood education system.

Evidence base: Longitudinal studies show that children, especially children from low-income families, who receive quality early education are less likely to need expensive services such as remedial education or public assistance as they grow older, and more likely to pay taxes as adult citizens. [3]

 


Legislative Sponsors in 2013

Senator Sal DiDomenico (D-Everett); Lead Co-Sponsor Senator (formerly Representative) Linda Dorcena Forry (D-Dorchester); Lead Co-Sponsor Sen. Katherine Clark (D-Melrose); Sen. Barry Finegold (D-Andover); Sen. Michael Moore (D-Millbury); Sen. Karen Spilka (D-Ashland); Rep. Cory Atkins (D-Concord); Rep. Paul Brodeur (D-Melrose); Rep. Thomas Conroy (D-Wayland); Rep. Marjorie Decker (D-Cambridge); Rep. Gloria Fox (D-Roxbury); Rep. Danielle Gregoire (D-Marlborough); Rep. Peter Kocot (D-Northampton); Rep. Paul McMurtry (D-Dedham); Rep. Denise Provost (D-Somerville); Rep. Carl Sciortino, Jr. (D-Medford); Rep. Benjamin Swan (D-Springfield); Rep. Aaron Vega (D-Holyoke)

Community Supporters in 2013

Boston Alliance for Early Education; Boys and Girls Club of Dorchester; Boston Community Partnerships for Children; Children’s Investment Fund; Crittenton Women’s Union; Massachusetts Association of Early Education and Care (MADCA); Strategies for Children; Thrive in 5 Boston; United Way of Massachusetts Bay and Merrimack Valley; Wellesley Centers for Women; Wheelock College

Legislative Sponsors in 2011

Sen. Sal DiDomenico (D-Everett); Sen. James Eldridge (D-Arlington); Rep. Linda Dorcena Forry (D-Dorchester); Rep. Cory Atkins (D-Concord); Rep. Gloria L. Fox (D-Roxbury); Rep. Denise Provost (D-Somerville); Rep. Benjamin Swan (D-Springfield)

Community Supporters in 2011

Boston Alliance for Early Education; Boston Community Partnerships for Children; Children’s Investment Fund; New North Citizens Council; Strategies for Children, Inc.; United Way of MA Bay and Merrimack Valley; Wellesley Centers for Women; Wheelock College


[1] Child Care Services Association. Child Care WAGE$® Project Statewide Final Report. Fiscal Year 2011. [2] Mendenhall R, et al. The Role of the Earned Income Tax Credit in the Budgets of Low-Income Families. 2012. Accepted for publication by Social Service Review on January 31, 2012 [3] Schweinhart LJ, et al. Lifetime effects: The HighScope Perry Preschool study through age 40. Ypsilanti, MI: HighScope Press, 2005.Rolnick A, Grunewald R. Early Childhood Development: Economic Development with a High Public Return. The Federal Reserve Bank of Minneapolis, March 2003.