Page 540

House Bill No. 5506

Public Act No. 22-118 540 of 739

(a) Any resident of this state, as defined in subdivision (1) of subsection (a) of section 12-701, who is subject to the tax imposed under this chapter for any taxable year shall be allowed a credit against the tax otherwise due under this chapter in an amount equal to the applicable percentage of the earned income credit claimed and allowed for the same taxable year under Section 32 of the Internal Revenue Code, as defined in subsection (a) of section 12-701. As used in this section, "applicable percentage" means (1) twenty-three per cent for taxable years commencing prior to January 1, 2021, [and] (2) thirty and one-half per cent for taxable years commencing on or after January 1, 2021, and (3) forty-one and one-half per cent for taxable years commencing on or after January 1, 2023. Sec. 410. Subparagraph (B) of subdivision (20) of subsection (a) of section 12-701 of the 2022 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage): (B) There shall be subtracted therefrom: (i) To the extent properly includable in gross income for federal income tax purposes, any income with respect to which taxation by any state is prohibited by federal law; (ii) To the extent allowable under section 12-718, exempt dividends paid by a regulated investment company; (iii) To the extent properly includable in gross income for federal income tax purposes, the amount of any refund or credit for overpayment of income taxes imposed by this state, or any other state of the United States or a political subdivision thereof, or the District of Columbia; (iv) To the extent properly includable in gross income for federal income tax purposes and not otherwise subtracted from federal adjusted gross income pursuant to clause (x) of this subparagraph in