(1) The federal earned income tax credit was enacted in 1975 to offset the effects of federal payroll taxes on low-income families. The earned income tax credit on the national level has been expanded several times, and policy-makers and constituencies of varying political ideologies have supported this tax relief mechanism;

(2) In 1996, 4,600,000 people in this country were lifted above the poverty level because of the earned income tax credit. More than half of those people were children;

(3) The earned income tax credit provides an additional work incentive. One Harvard study indicated that the availability of the earned income tax credit induced twenty per cent of single mothers to enter the workforce; and

(4) The earned income tax credit addresses the gap between the rich and poor. Even a full-time job at low pay can fail to bring a family above the poverty level. Additionally, many states have enacted tax-cuts, and the earned income tax credit would enable low-income earners to also enjoy the benefits of those tax cuts.

(1) Join eleven other states in offering a form of earned income tax credit using federal eligibility criteria; and

(2) Combat poverty more effectively by providing additional assistance to welfare recipients entering the work force, and other workers supporting their families on low wages.

(1) Ten per cent of the taxpayer's tax liability for the taxable years beginning after December 31, 2000, and ending before January 1, 2002; and

(2) Fifteen per cent of the taxpayer's tax liability for taxable years beginning after December 31, 2001.

(1) Subchapter A (sections 1 to 59A) (with respect to determination of tax liability), except section 1(h)(3) (relating to net capital gain reduced by the amount taken into account as investment income), except section 32 (with respect to the earned income credit), except section 41 (with respect to the credit for increasing research activities), except section 42 (with respect to low-income housing credit), and except sections 47 and 48, as amended, as of December 31, 1984 (with respect to certain depreciable tangible personal property). For treatment, see sections 235-110.91, 235-110.7, and 235-110.8;

(2) Section 78 (with respect to dividends received from certain foreign corporations by domestic corporations choosing foreign tax credit);

(3) Section 86 (with respect to social security and tier 1 railroad retirement benefits);

(4) Section 103 (with respect to interest on state and local bonds). For treatment, see section 235-7(b);

(5) Section 120 (with respect to amounts received under qualified group legal services plans). For treatment, see section 235-7(a)(9) to (11);

(6) Section 122 (with respect to certain reduced uniformed services retirement pay). For treatment, see section 235-7(a)(3);

(7) Section 135 (with respect to income from United States savings bonds used to pay higher education tuition and fees). For treatment, see section 235-7(a)(1);

(8) Subchapter B (sections 141 to 150) (with respect to tax exemption requirements for state and local bonds);

(9) Section 151 (with respect to allowance of deductions for personal exemptions). For treatment, see section 235-54;

(10) Section 196 (with respect to deduction for certain unused investment credits);

(11) Sections 241 to 247 (with respect to special deductions for corporations). For treatment, see section 235-7(c);

(12) Section 280C (with respect to certain expenses for which credits are allowable). For treatment, see, section 235-110.91;

(13) Section 291 (with respect to special rules relating to corporate preference items);

(14) Section 367 (with respect to foreign corporations);

(15) Section 501(c)(12), (15), (16) (with respect to exempt organizations);

(16) Section 515 (with respect to taxes of foreign countries and possessions of the United States);

(17) Subchapter G (sections 531 to 565) (with respect to corporations used to avoid income tax on shareholders);

(18) Subchapter H (sections 581 to 597) (with respect to banking institutions), except section 584 (with respect to common trust funds). For treatment, see chapter 241;

(19) Section 642(a) and (b) (with respect to special rules for credits and deductions applicable to trusts). For treatment, see sections 235-54(b) and 235-55;

(20) Section 668 (with respect to interest charge on accumulation distributions from foreign trusts);

(21) Subchapter L (sections 801 to 848) (with respect to insurance companies). For treatment, see sections 431:7-202 and 431:7-204;

(22) Section 853 (with respect to foreign tax credit allowed to shareholders). For treatment, see section 235-55;

(23) Subchapter N (sections 861 to 999) (with respect to tax based on income from sources within or without the United States), except sections 985 to 989 (with respect to foreign currency transactions). For treatment, see sections 235-4, 235-5, [and] 235-7(b), and 235-55;

(24) Section 1042(g) (with respect to sales of stock in agricultural refiners and processors to eligible farm cooperatives);

(25) Section 1055 (with respect to redeemable ground rents);

(26) Section 1057 (with respect to election to treat transfer to foreign trust, etc., as taxable exchange);

(27) Sections 1291 to 1298 (with respect to treatment of passive foreign investment companies);

(28) Subchapter Q (sections 1311 to 1351) (with respect to readjustment of tax between years and special limitations); and

(29) Subchapter U (sections 1391 to 1397F) (with respect to designation and treatment of empowerment zones, enterprise communities, and rural development investment areas). For treatment, see chapter 209E."