The bill establishes the Oil and Gas Equalization Surtax under the Oil and Gas Emergency School Tax Act, which imposes a surtax of 0.28% on certain oil products when the price exceeds $55 per barrel. It also reduces the existing Oil and Gas Emergency School Tax rate on specific natural gas products. Additionally, the bill repeals the Working Families Tax Credit and introduces a new Earned Income Tax Credit (EITC) that provides eligible individuals with a tax credit based on their earned income and the number of qualifying children. Key amendments include the integration of the new surtax and adjustments to the definitions and tax rates associated with the Oil and Gas Emergency School Tax.

The EITC provisions focus on married couples filing jointly, increasing the phaseout amount by $5,000. If an eligible individual's earned income or adjusted gross income is below a certain threshold and the credit is less than $100, it will be set at $100. Starting in the 2026 taxable year, all earned income and phaseout amounts will be adjusted for inflation based on the consumer price index. The bill also includes reporting requirements for taxpayers claiming the credit, ensures that any excess credit is refunded without being treated as income, and mandates inclusion of the credit in the tax expenditure budget for transparency. The provisions will take effect for taxable years beginning on or after January 1, 2025, with certain sections effective July 1, 2025.

Statutes affected:
introduced version: 7-2-18.15
TR substitute: 7-1-10, 7-31-2, 7-31-4, 7-31-7, 7-31-8, 7-31-26, 7-2-18.15