Bill > H3901

This bill clarifies eligibility for the earned income tax credit, a tax credit designed to help low-to-moderate income workers and families. Specifically, it amends existing law to state that a taxpayer can claim this credit if they qualified for and claimed the federal earned income credit, which is allowed under section 32 of the Internal Revenue Code. For individuals who are not residents of Massachusetts for the entire tax year, the credit will be prorated, meaning it will be a portion of the federal credit based on the number of days they lived in Massachusetts. Those who are nonresidents for the full year will not be eligible for this credit. The bill also specifies that this credit will be applied after other credits and that any excess credit amount will be refunded to the taxpayer.