Earned income tax credit. Additional amount for certain taxpayers

(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, (2) thirty and one-half per cent for taxable years commencing on or after January 1, 2021, and prior to January 1, 2023, and (3) forty per cent for taxable years commencing on or after January 1, 2023. (b) If the amount of the credit allowed pursuant to this section exceeds the taxpayer's liability for the tax imposed under this chapter, the Commissioner of Revenue Services shall treat such excess as an overpayment and, except as provided under section 12-739 or 12-742, shall refund the amount of such excess, without interest, to the taxpayer. If the taxpayer is eligible for the credit under this section and has at least one qualifying child for federal income tax purposes, such taxpayer shall be allowed an additional two hundred fifty dollars for the amount of the credit. (c) If a married individual who is otherwise eligible for the credit allowed under this section has filed a joint federal income tax return for the taxable year, but is required to file a separate return under this chapter for such taxable year, the credit for which such individual is eligible under this section shall be an amount equal to the applicable percentage of the earned income credit claimed and allowed for such taxable year under Section 32 of the Internal Revenue Code multiplied by a fraction, the numerator of which is such individual's federal adjusted gross income, as reported on such individual's separate return under this chapter, and the denominator of which is the federal adjusted gross income, as reported on the joint federal income tax return. (d) To the extent permitted under federal law, any state or federal earned income tax credit shall not be counted as income when received by an individual who is an applicant for, or recipient of, benefits or services under any state or federal program that provides such benefits or services based on need, nor shall any such earned income tax credit be counted as resources, for the purpose of determining the individual's or any other individual's eligibility for such benefits or services, or the amount of such benefits or services.