1.05.2007 - 09:29am ET

(CSRwire) WASHINGTON--(BUSINESS WIRE)--Jan. 5, 2007--Capital One Financial Corporation is partnering with the Points of Light Foundation & Volunteer Center National Network to help working low- to moderate-income families take advantage of the Earned Income Tax Credit (EITC). The EITC is a refundable federal income tax credit for low-income working individuals and families.

The $250,000 grant and in-kind marketing support from Capital One will support the Foundation's efforts to strengthen and expand EITC outreach and free tax preparation campaigns and to provide education, training and mentoring to Volunteer Centers. The EITC & Asset Building Initiative, sponsored by Capital One, will support the efforts of volunteers in 10 communities throughout the United States.

The ten communities include: Baton Rouge, LA; Columbus, OH; Fairfax, VA; Houston, TX; Louisville, KY; Macon, GA; Phoenix, AZ; Flint, MI; Springfield, OR; and Provo, UT.

"This generous grant from Capital One will strengthen our commitment to support and improve the lives of children and families by engaging more volunteers more effectively in the efforts of local tax coalitions," says Robert Goodwin, president and CEO of the Foundation. "It will be used to help more low-income individuals and working families take advantage of the tax credit."

"Capital One is proud to partner with the Points of Light Foundation to educate and connect low-income families to a financial program that will help families and children gain access to additional resources," said Carolyn Berkowitz, vice president of community affairs, Capital One. "We recognize that strong families help build vibrant communities which benefits us all."

Congress originally approved the tax credit legislation in 1975 in part to offset the burden of Social Security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.

The Internal Revenue Service says that more than $32 billion is available for low-income working families, but up to 20 percent of those eligible for this support aren't aware of it. In the meantime, millions of taxpayers, including low-income families, spend $2 billion on commercial tax preparers every year.

According to Goodwin, the EITC has a number of benefits:

-- It reduces the number of families living in poverty. In 2004,
21 million working families received nearly $38 billion in
EITC refunds. The tax credit lifted 4.7 million people above
the poverty line.

-- It promotes work. The EITC makes work more attractive than
welfare programs and helps many families make the transition
from public assistance into the labor force.

-- It reduces inequality in income (after taxes).

-- It helps low-income families build assets.

"The Earned Income Tax Credit is a hand up, not a handout," Goodwin adds. "It also provides more people with spendable income that can generate jobs and support local economies."

The Points of Light Foundation is seeking volunteers who can help low-income working individuals and families complete their tax returns in order to take advantage of the EITC. To find out how you can participate, go to www.PointsofLight.org/eitc.

The Points of Light Foundation & Volunteer Center National Network engages and mobilizes millions of volunteers who are helping to solve serious social problems in thousands of communities. Through a variety of programs and services, the Foundation encourages people from all walks of life -- businesses, nonprofits, faith-based organizations, low-income communities, families, youth, and older adults -- to volunteer.

Capital One Financial Corporation (www.capitalone.com), headquartered in McLean, Virginia, is a financial holding company, with more than 693 locations in New York, New Jersey, Connecticut, Texas and Louisiana that offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. As of September 30, 2006, Capital One Bank, Capital One, F.S.B., Capital One Auto Finance, Inc., and Capital One, N.A. collectively had $112.2 billion in managed loans and $47.6 billion in deposits. Its newly acquired subsidiary, North Fork Bank, had $40.9 billion in managed loans and $36.5 billion in deposits. Capital One, a Fortune 500 company, trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.

Copyright Business Wire 2007

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