Earned income credit determined based on preceding taxable year income with respect to qualified hurricane disaster areas

(a) In general In the case of an eligible individual, if the earned income of the taxpayer for the applicable taxable year is less than the earned income of the taxpayer for the preceding taxable year, the credit allowed under section 32 of the Internal Revenue Code of 1986 for the applicable taxable year may, at the election of the taxpayer, be determined by substituting— (1) such earned income for the preceding taxable year, for (2) such earned income for the applicable taxable year. (b) Applicable tax year For purposes of this section, the term applicable taxable year means any taxable year which includes any portion of the incident period. (c) Earned income For purposes of this section, the term earned income has the meaning given such term under section 32(c) of such Code. (d) Special rules (1) Application to joint returns For purposes of subsection (a), in the case of a joint return for an applicable taxable year— (A) such subsection shall apply if either spouse is an eligible individual, and (B) the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such preceding taxable year. (2) Errors treated as mathematical error For purposes of section 6213 of such Code, an incorrect use on a return of earned income pursuant to subsection (a) shall be treated as a mathematical or clerical error. (3) No effect on determination of gross income, etc Except as otherwise provided in this section, such Code shall be applied without regard to any substitution under subsection (a). (4) Limitation to single taxable year No taxpayer may make an election under subsection (a) if such taxpayer (or in the case of a joint return, the taxpayer’s spouse) made such an election for any preceding taxable year.