STATE OF NEW YORK
________________________________________________________________________
5577--A
2023-2024 Regular Sessions
IN ASSEMBLY
March 16, 2023
___________
Introduced by M. of A. FAHY, HEVESI, THIELE, STERN, SIMON, DICKENS,
JACKSON, BURDICK, LUNSFORD, DINOWITZ, LUPARDO, BRONSON, GALLAGHER,
GONZALEZ-ROJAS, FORREST, CRUZ, WALLACE, CLARK, SILLITTI, MEEKS, GLICK,
RAMOS, DARLING, MITAYNES, JEAN-PIERRE, KELLES, RIVERA, McDONALD,
SEAWRIGHT, STIRPE, LEVENBERG -- Multi-Sponsored by -- M. of A. ARDILA
-- read once and referred to the Committee on Ways and Means --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the tax law, in relation to providing for the advance
payment of the earned income tax credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 1 of subsection (d) of section 606 of the tax
2 law, as amended by section 1 of part Q of chapter 63 of the laws of
3 2000, is amended and a new paragraph 9 is added to read as follows:
4 (1) General. A taxpayer shall be allowed a credit as provided herein
5 equal to (i) the applicable percentage of the earned income credit
6 allowed under section thirty-two of the internal revenue code for the
7 same taxable year, (ii) reduced by the credit permitted under subsection
8 (b) of this section. Provided, however, for taxable years beginning in
9 two thousand twenty-five and thereafter, for the purpose of determining
10 the amount of tax credit under this paragraph, in calculating the earned
11 income tax credit allowed under section thirty-two of the internal
12 revenue code, the phaseout amount as referenced in section 32(b)(2)(A)
13 of the internal revenue code shall be read as twenty-four thousand nine
14 hundred sixty dollars instead of eleven thousand six hundred ten dollars
15 and such phaseout amount shall be subject to adjustments made in section
16 thirty-two of the internal revenue code (the calendar year referenced in
17 the cost of living adjustment in section 32(j)(1)(B) of the internal
18 revenue code shall be applied as calendar year two thousand twenty-five
19 with respect to the phaseout amounts), including an additional phaseout
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09953-05-3
A. 5577--A 2
1 amount for a joint filer and inflation adjustment specified in such
2 section of the internal revenue code for taxable years beginning in two
3 thousand twenty-five and thereafter.
4 The applicable percentage shall be (i) seven and one-half percent for
5 taxable years beginning in nineteen hundred ninety-four, (ii) ten
6 percent for taxable years beginning in nineteen hundred ninety-five,
7 (iii) twenty percent for taxable years beginning after nineteen hundred
8 ninety-five and before two thousand, (iv) twenty-two and one-half
9 percent for taxable years beginning in two thousand, (v) twenty-five
10 percent for taxable years beginning in two thousand one, (vi) twenty-
11 seven and one-half percent for taxable years beginning in two thousand
12 two, [and] (vii) thirty percent for taxable years beginning in two thou-
13 sand three, (viii) thirty-five percent for taxable years beginning in
14 two thousand twenty-five, and (ix) forty percent for taxable years
15 beginning in two thousand twenty-six and thereafter. For taxable years
16 beginning in two thousand twenty-five and thereafter, in the case of an
17 eligible individual with no qualifying children, the credit percentage
18 shall be fifteen and three-tenths to determine the amount of the earned
19 income tax credit referenced in section 32(b)(1) of the internal revenue
20 code and the earned income amount and the phaseout amount of such indi-
21 vidual shall be determined as if such earned income amount and phaseout
22 amount as referenced in section 32(b)(2)(A) of the internal revenue code
23 are equal to the amount allowed for an eligible individual with one
24 qualifying child as such amounts are referenced in such paragraph.
25 Provided further, for the purpose of this subsection, an eligible indi-
26 vidual shall be an individual who has attained nineteen years of age as
27 opposed to twenty-five years of age, irrespective of the eligibility
28 referenced in section 32(c)(1)(A)(ii)(II) of the internal revenue code.
29 Furthermore, an individual otherwise eligible but for the requirement
30 under section 32(m) of the internal revenue code shall be eligible for
31 this credit. Provided, however, that if the reversion event, as defined
32 in this paragraph, occurs, the applicable percentage shall be twenty
33 percent for taxable years ending on or after the date on which the
34 reversion event occurred. The reversion event shall be deemed to have
35 occurred on the date on which federal action, including but not limited
36 to, administrative, statutory or regulatory changes, materially reduces
37 or eliminates New York state's allocation of the federal temporary
38 assistance for needy families block grant, or materially reduces the
39 ability of the state to spend federal temporary assistance for needy
40 families block grant funds for the earned income credit or to apply
41 state general fund spending on the earned income credit toward the
42 temporary assistance for needy families block grant maintenance of
43 effort requirement, and the commissioner of the office of temporary and
44 disability assistance shall certify the date of such event to the
45 commissioner of taxation and finance, the director of the division of
46 the budget, the speaker of the assembly and the temporary president of
47 the senate.
48 (9) Individuals over age sixty-five. Notwithstanding the provisions of
49 section 32(c)(1)(A)(ii)(III) of the internal revenue code, an individual
50 who is otherwise eligible to receive the earned income credit under this
51 subsection shall not be deemed ineligible due solely to the fact that
52 such individual has attained the age of sixty-five.
53 § 2. The tax law is amended by adding a new section 679 to read as
54 follows:
55 § 679. Advance payment of earned income credit. (a) General rule.
56 Except as otherwise provided in this chapter, the commissioner shall
A. 5577--A 3
1 provide for the prepayment of the earned income credit to qualifying
2 employees.
3 (b) Earned income eligibility certificate. For purposes of this arti-
4 cle, an earned income eligibility certificate is a statement furnished
5 by an employee to the commissioner which:
6 (1) certifies that the employee will be eligible to receive an earned
7 income credit or an enhanced earned income credit provided pursuant to
8 subsection (d) or (d-1) of section six hundred six of this article for
9 the taxable year;
10 (2) certifies that the employee does not have an earned income eligi-
11 bility certificate in effect for the taxable year with respect to the
12 payment of wages by another employer; and
13 (3) states whether the employee's spouse has an earned income eligi-
14 bility certificate in effect. For purposes of this section, a certif-
15 icate shall be treated as being in effect with respect to a spouse if
16 such certificate will be in effect on the first status determination
17 date following the date on which the other eligible spouse furnishes the
18 statement in question.
19 (c) Earned income advance amount. Four advanced payments shall be made
20 to such qualifying employees. An estimated annual tax credit shall be
21 determined by the commissioner in advance of the first payment and shall
22 be subject to adjustment due to changes in employment or family status
23 over the course of the year. Prior to disbursement, the commissioner
24 shall ensure that the qualifying employee's status has not changed. The
25 first three advanced payments shall be made during the taxable year and
26 shall be twenty percent of the anticipated credit. The fourth advanced
27 payment shall be made after the tax year is over and shall be adjusted
28 to match the actual credit due eligible. Such payments shall, to the
29 extent practicable, be made available via direct deposit and via elec-
30 tronic benefit transfer (EBT) card.
31 (d) Form and contents of certificate. Earned income eligibility
32 certificates shall be in such form and contain such information as the
33 commissioner may determine and prescribe.
34 (e) Notification. (1) The commissioner shall notify all taxpayers who
35 have received a refund of the credit pursuant to subsection (d) or (d-1)
36 of section six hundred six of this article based on the most recent tax
37 return or record in writing of the availability of earned income advance
38 amounts under this section. Such written or electronic notification
39 shall include a clearly labeled section or withholding forms and a sepa-
40 rate handout with information about the advanced payment of the earned
41 income credit in the six most common languages spoken by individuals in
42 this state.
43 (2) The commissioner shall provide information on the availability of
44 earned income advance amounts under this section to tax preparers,
45 accountants and organizations that assist individuals in tax prepara-
46 tion. Such information shall be distributed to qualifying individuals.
47 (f) Coordination with advance payments of earned income credit. (1) If
48 any payment is made to the individual by the department under this
49 section during any calendar year, the tax imposed by this chapter for
50 the individual's last taxable year beginning in such calendar year shall
51 be increased by the aggregate amount of such payments.
52 (2) If an individual establishes that they are requesting and receiv-
53 ing payments under this section in good faith by establishing that they
54 properly claimed payments under this section in the prior year and that
55 they have has not experienced a substantial change in circumstances such
A. 5577--A 4
1 that they have a reasonable expectation of eligibility in the current
2 year, then paragraph one of this subsection shall not apply.
3 (3) Any increase in tax under this subsection shall not be treated as
4 tax imposed by this chapter for purposes of determining the amount of
5 any credit, other than the credit allowed by subsection (d) or (d-1) of
6 section six hundred six of this article, allowable under this article.
7 § 3. This act shall take effect immediately and shall apply to taxable
8 years beginning on or after January 1, 2025.