Budget Amendment ID: FY2016-S3-5

OTH 5

Expanding the Earned Income Tax Credit

Messrs. Tarr, Ross and Fattman moved that the proposed new text be amended by inserting, after section ___, the following new section:-

SECTION _. Subsection (h) of section 6 of chapter 62, as appearing in the 2012 Official Edition, is hereby amended by striking out the second and third sentences and inserting in place thereof the following sentences:-

The credit allowed by this subsection shall equal the following amounts: (i) for each taxable year beginning on or after January 1, 1997 but before January 1, 2016, 15 per cent of the federal credit received by the taxpayer for the taxable year; (ii) for each taxable year beginning on or after January 1, 2016 but before January 1, 2017, 24 per cent of the federal credit received by the taxpayer for the taxable year; (iii) for each taxable year beginning on or after January 1, 2017 but before January 1, 2018, 27 per cent of the federal credit received by the taxpayer for the taxable year; (iv) for each taxable year beginning on or after January 1, 2018 and thereafter, 30 per cent of the federal credit received by the taxpayer for the taxable year. With respect to a person who is a nonresident for all or part of the taxable year, the credit shall be limited to the amount specified in the preceding sentence, multiplied by a fraction the numerator of which shall be the earned income of the nonresident from Massachusetts sources and the denominator of which shall be the earned income of the nonresident from all sources.