For income tax years commencing on or after January 1, 2021, but before January 1, 2026, the bill specifies that a qualified taxpayer is allowed an income tax credit in an amount equal to the income tax imposed on the qualified taxpayer in that income tax year so that the income tax due for the qualified taxpayer in that income tax year is zero.
The bill defines a qualified taxpayer as:
- An individual who files a federal income tax return with federal taxable income in an amount less than $20,000; or
- Two individuals who file a joint federal income tax return with combined federal taxable income in an amount less than $40,000.
(Note: This summary applies to this bill as introduced.)