INCOME OF PRISONERS DISREGARDED IN DETERMINING EARNED INCOME TAX CREDIT.

SEC. 723. INCOME OF PRISONERS DISREGARDED IN DETERMINING EARNED INCOME TAX CREDIT. (a) In General.—Subparagraph (B) of section 32(c)(2) (defining earned income) is amended by striking “and” at the end of clause (ii), by striking the period at the end of clause (iii) and inserting “, and”, and by adding at the end the following new clause: “(iv) no amount received for services provided by an individual while the individual is an inmate at a penal institution shall be taken into account.” (b) Effective Date.—The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1993.