SB 178 — AN ACT INCREASING THE APPLICABLE PERCENTAGE OF THE EARNED INCOME TAX CREDIT.

General Assembly ProposedCommittee Bill No.

10904703 Referred to Committee on FINANCE, REVENUE AND BONDING Introduced by:

SEN.(FIN) AN ACT INCREASING THE APPLICABLE PERCENTAGE OF THE EARNED INCOME TAX CREDIT.

LOONEY, 11th Dist.

AN ACT INCREASING THE APPLICABLE PERCENTAGE OF THE EARNED INCOME TAX CREDIT.

ThatSection section1. 12-704e of the general statutes be amended to increase the applicable percentage of the earned income tax credit to thirty per cent.

StatementSection 12-704e of Purpose:the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage and applicable to taxable years commencing on or after January 1, 2021):

To(a) increaseAny resident of this state, as defined in subdivision (1) of subsection (a) of section 12-701, who is subject to the tax imposed under this chapter for any taxable year shall be allowed a credit against the tax otherwise due under this chapter in an amount equal to the applicable percentagepercentage, as defined in subsection (e) of this section, of the earned income tax credit claimed and provideallowed economicfor assistancethe tosame residents.taxable year under Section 32 of the Internal Revenue Code, as defined in subsection (a) of section 12-701.

(b) If the amount of the credit allowed pursuant to this section exceeds the taxpayer's liability for the tax imposed under this chapter, the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 or 12-742, LCO No.

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178 shallrefundtheamount ofsuchexcess,without interest,to thetaxpayer.

(c) If a married individual who is otherwise eligible for the credit allowed hereunder has filed a joint federal income tax return for the taxable year, but is required to file a separate return under this chapter for such taxable year, the credit for which such individual is eligible underthissectionshallbeanamountequalto theapplicablepercentage, as defined in subsection (e) of this section, of the earned income credit claimed and allowed for such taxable year under said Section 32 of the Internal Revenue Code multiplied by a fraction, the numerator of which is such individual's federal adjusted gross income, as reported on such individual's separate return under this chapter, and the denominator of which is the federal adjusted gross income, as reported on the joint federal income tax return.

(d) To the extent permitted under federal law, any state or federal earned income tax credit shall not be counted as income when received by an individual who is an applicant for, or recipient of, benefits or services under any state or federal program that provides such benefits or services based on need, nor shall any such earned income tax credit be counted as resources, for the purpose of determining the individual's or any other individual's eligibility for such benefits or services, or the amount of such benefits or services.

(e) For purposes of this section, "applicable percentage" means [twenty-three] thirty per cent.

This act shall take effect as follows and shall amend the following sections:

Section 1 from passage and 12-704e applicable to taxable years commencing on or after January 1, 2021 LCO No.

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178 Statement of Purpose:

To increase the applicable percentage of the earned income tax credit to thirty per cent.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] SEN.

LOONEY, 11th Dist.

Co-Sponsors:

S.B.

178 LCO No.

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