Amendment #1004 to H4000

Creation of an income tax credit in line with a special federal rule

Ms. DuBois of Brockton moves to amend the bill by inserting after section 50 the following section:

SECTION 50A. (a)  Said section 6 of said chapter 62 is hereby further amended by adding the following subsection:-

(y) (1) As used in this subsection, “unemployment compensation”, shall have the same meaning as defined under section 85 of the Code, in effect for the current taxable year.

(2) For taxable year 2020, a taxpayer shall be allowed a credit against the taxes imposed by this chapter if: (i) the taxpayer qualified for and received unemployment compensation; (ii) the taxpayer’s federal adjusted gross income for the taxable year does not exceed $150,000, calculated pursuant to subsection (c) of section 85 of the Code, in effect for the current taxable year and (iii) the taxpayer is not eligible for the credit established by subsection (x). The allowable credit shall be equal to 5 per cent of unemployment compensation received by the taxpayer and included in the taxpayer’s gross income for the taxable year pursuant to section 2; provided, however that the amount allowed under this subsection shall not exceed $510. If the amount of the credit allowed under this subsection exceeds the taxpayer’s tax liability, the commissioner shall treat the excess as an overpayment and shall pay the taxpayer the entire amount of the excess without interest.