H.B. 2708 Summary

• Authorizes qualifying individual taxpayers to elect to reduce the amount of tax withheld from their wages by a prorated portion of the earned income tax credit they would otherwise claim annually.

• Requires the Department of Taxation to adopt rules and prepare forms necessary to implement the wage withholding reduction for earned income tax credit recipients.

• Defines "qualifying individual taxpayer" as an employee who claims the earned income tax credit under section 235-55.75.

• Applies to taxable years beginning after December 31, 2020, allowing low-income working families to receive benefits through reduced withholding rather than waiting until annual tax filing.

• Takes effect on January 1, 2050.