General Assembly Substitute Bill No. 5626
February Session, 2016 *_____HB05626FIN___032916____*
General Assembly
Substitute Bill No. 5626
February Session, 2016
*_____HB05626FIN___032916____*
AN ACT CONCERNING THE EARNED INCOME TAX CREDIT.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (Effective October 1, 2016) The Department of Revenue Services shall study the earned income amount requirements for earned income tax credit eligibility pursuant to Section 32 of the Internal Revenue Code, as defined in section 12-701 of the general statutes, incorporated by reference into section 12-704e of the general statutes, and the impact of such income requirements on premature termination of employment by recipients of such credit seeking to maintain eligibility for the credit. Not later than January 1, 2017, the department shall report on such study, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to finance, revenue and bonding. Such report shall include recommendations for (1) a graduated schedule that will allow those receiving the credit to remain eligible for such credit upon small increases in pay, (2) monthly distribution of any refund, in lieu of the current lump sum annual refund provided for in subsection (b) of section 12-704e of the general statutes, of a personal income tax overpayment resulting from the application of the earned income tax credit, and (3) a schedule for such monthly distribution where such refund decreases as pay increases in a manner that does not reduce the employee's monthly income.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2016 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2016
New section
Statement of Legislative Commissioners:
For the purpose of ensuring accuracy "income requirements" was changed to "earned income amount requirements" and the reference to Section 32 of the Internal Revenue Code, as defined in section 12-701 of the general statutes, was added.
FIN Joint Favorable Subst. -LCO
FIN
Joint Favorable Subst. -LCO