CHAPTER 443

FORMERLY

HOUSE BILL NO. 438

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLES 30 AND 31 OF THE DELAWARE CODE RELATING TO THE FEDERAL EARNED INCOME TAX CREDIT.

WHEREAS, the United States Congress provides an Earned Income Tax Credit (ETC) to each qualifying family with an adjusted gross income of less than $23,050 in 1993; and

WHEREAS, such families often do not know to file for an EIC, among other reasons, because they do not need to file Federal tax returns; and

WHEREAS, it is in the best interest of such families entitled to receive the EIC under Federal law to actually receive the EIC; and

WHEREAS, children account for eleven and seven-tenths percent (11.7%) of the impoverished persons in the State of Delaware according to a 1990 estimate, and are among the intended beneficiaries of the EIC, together with their families; and

WHEREAS, most of the EIC received by families with an adjusted gross income of less than $23,050 is spent rather than saved, and spent locally, thus stimulating the Delaware economy;

NOW, THEREFORE,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section One. This Act may be cited as the Earned Income Tax Credit

Information Act.

Section Two. Amend Title 30 of the Delaware Code by striking § 1152 thereof in its entirety, and by inserting a new Section in its place which shall read as follows:

"§ 1152. Information statement for employee.

Every employer required to deduct and withhold tax under this chapter from the wages or other remuneration of an employee shall furnish to each such employee, in respect to the wages or other remuneration paid by such employer to such employee during the calendar year, on or before January 31 of the succeeding year, or, if such employee's employment is terminated before the close of such calendar year, within 30 days from the date on which the last payment of wages or other remuneration is made, a written statement, as prescribed by the Director of the Division of Revenue, showing

(1) the amount of wages or other remuneration paid by the employer to the employee;

(2) the amount deducted and withheld as tax;

(3) All information required by the Internal Revenue Service regarding the employee's eligibility for the federal earned income tax credit; and

(4) such other information as the Director of the Division of Revenue shall prescribe."

Section Three. Amend Title 31, § 503(g) of the Delaware Code by appending thereto:

"During the month of January, the Department shall send a notice to recipients paid by the Department under this subsection in the form of:

(1) Any notice available from the Internal Revenue Service concerning the EIC, including but not limited to the Notice of a Possible Federal Tax Refund Due to the Earned Income Credit; or (2) A notice developed by the Department which shall include the maximum earned income credit and the maximum earnings to which such tax credit shall apply, as determined by the federal government."

Section Four. This Act shall be effective sixty days following enactment.

Approved July 15, 1994.