(a) Earned income exclusion. — In the case of an eligible taxpayer, there shall be allowed as a deduction from federal adjusted gross income the amount of his or her earned income included therein, not to exceed $10,000, except that when a husband and wife file separate returns under this article this exclusion shall not exceed $5,000 per separate return: Provided, That for the taxable year beginning January 1, 1996, the exclusion provided for in this section shall apply only to earned income received after June 30, 1996, and the amount excluded shall not exceed fifty percent of the annual low income exclusion amounts set forth in this subsection.
(b) "Eligible taxpayer" defined. — The term "eligible taxpayer" means:
(1) Any unmarried individual and any husband and wife filing a joint return under this article who has or have federal adjusted gross income of $10,000 or less for the taxable year; or