Section 1. Chapter 62, is hereby amended by inserting after Section 6, the following section:-
Section 7. Any owner or tenant of residential property the who is not a dependent of another taxpayer and who occupies said property as his principal residence, directly impacted by a “Presidential Declaration of Emergency or Disaster” authorized under Title V of the Stafford Act shall be allowed a disaster emergency tax credit provided that an individual shall have completed an application for federal disaster assistance and registered with Federal Emergency Management Agency and the Small Business Administration and have been denied relief and provided further, an individual is qualified for the earned income credit, pursuant to the provisions of Section 6. of Chapter 62 of the Code as amended and in effect for the taxable year.
The credit shall be equal to 25 percent of the net expenditure for replacing personal property not covered by Federal Emergency Management Agency or Small Business Administration or 1,200 dollars whichever is more, provided that the credit shall not exceed 1,500 dollars.
Section 2. As used in this section the following words shall have the following meaning:-
“Residence” the building or portion thereof, including a mobile home, owned or rented and occupied by the taxpayer as the taxpayer’s primary dwelling during the taxable year. The residence may consist of a part of a multi unit purpose building.
“Tenant of residential property” a person providing consideration for occupation of a dwelling place located in Presidential Declared State of Emergency counties in the Commonwealth, who is not a dependent of another taxpayer and who occupies said property as his principal residence.
“Personal property” durable items purchased as a direct result of a disaster and ineligible for assistance under Federal Emergency Management Agency and Small Business Administration.
Section 3. Joint owners of a residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest.
Section 4. Any credit provided by this subsection shall not be counted as income in determining eligibility or benefits under any other means tested under any other means-tested assistance program including but not limited to all such cash, food, medical, housing, energy and educational assistance programs.
Section 5. The Commissioner for Department of Revenue shall promulgate rules and regulations to carry out the purpose of this act.
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