Tax Rebates for Low- to Moderate-income Residents:
HB 1331 creates the Working Floridians Tax Rebate Program within the Florida Department of Revenue to provide a state rebate to low- to moderate-income residents who received the federal Earned Income Tax Credit (EITC). Eligible individuals or households must have a Florida residence on their federal return, apply by June 30 of the year the EITC was received, and provide documentation of the credit. The rebate would equal 20% of the federal EITC amount received, and the department would have 30 days after verifying a completed application to issue payment by check or direct deposit.
The bill also directs the Department of Revenue to report on the feasibility of creating an automatic rebate program using IRS or other federal data so residents would not need to apply each year. If automatic delivery is not feasible, the report must identify barriers and propose solutions; if feasible, it must include a legislative proposal to implement it. The bill applies to EITC awards beginning on or after January 1, 2026, and takes effect July 1, 2025.
If enacted, HB 1331 would add a new state rebate program administered by the Department of Revenue and create a new state spending mechanism tied to federal EITC eligibility. It would not change the federal tax credit itself, but it would require the department to process applications, verify EITC receipt, issue payments, and produce a feasibility report on automatic administration. The bill also expressly protects rebate recipients by prohibiting the rebate from being counted when determining eligibility for Medicaid, Florida Kidcare, cash assistance, or SNAP.
The available record shows limited formal debate or recorded votes, but the bill’s purpose suggests a generally supportive policy approach toward tax relief for working low-income households. Its framing around relief for sales, fuel, property, and other taxes indicates an effort to target assistance to residents already qualifying for the federal EITC. The bill ultimately died in the Ways & Means Committee, which indicates it did not advance despite its relief-oriented design.
The main policy questions raised by the bill are administrative feasibility, cost, and the use of state funds for a rebate tied to a federal benefit. The requirement that recipients apply and document their EITC receipt could be seen as burdensome, which is why the bill also asks the department to study an automatic delivery model using federal data. Potential concerns likely include whether the state can lawfully and practically access federal information, whether the rebate should be automatic or application-based, and how the program would affect the state budget and tax administration. The explicit exclusion from means-tested benefit eligibility suggests lawmakers anticipated concern that the rebate might otherwise reduce access to public assistance.