State child tax credits: A promising policy to improve child outcomes

In the wake of the success of the temporary expansion of the federal child tax credit (CTC) in 2021, state CTCs have emerged as an increasingly popular policy to support families’ economic stability. This report provides background on state CTCs, explains their expected benefits for children and families, describes variation in credit design across states and over time, and offers a timely synthesis of the evidence on their impacts within an organized framework in order to inform current policy decisions. Early findings show reductions in maltreatment reports and the potential to decrease child poverty, suggesting state CTCs are a promising approach. Further research is needed as the policy landscape continues to evolve.