Authorizes and directs the commissioner of taxation and finance to conduct a feasibility and impact study on monthly payments of the earned income tax credit; provides for the installment payment for the earned income credit.
STATE OF NEW YORK
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5158--A
2017-2018 Regular Sessions
IN ASSEMBLY
February 6, 2017
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Introduced by M. of A. CRESPO, SEPULVEDA, RIVERA, PICHARDO, RODRIGUEZ,
RAMOS, ARROYO, DAVILA, GOODELL -- read once and referred to the
Committee on Ways and Means -- recommitted to the Committee on Ways
and Means in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the tax law, in relation to installment payments for the
earned income credit; and to authorize and direct the commissioner of
taxation and finance to conduct a feasibility and impact study on
monthly payments 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. The commissioner of taxation and finance is hereby author-
2 ized and directed to study and report on the feasibility and impact of
3 using an installment payment plan for earned income credits. Such
4 commissioner shall include in the study and subsequent report a detailed
5 analysis of a plan where an earned income tax credit pursuant to
6 subsection (d) of section 606 of the tax law or an enhanced earned
7 income tax credit pursuant to subsection (d-1) of section 606 of the tax
8 law is distributed to the taxpayer as follows: (i) for amounts equal to
9 or less than two hundred dollars, the payment or refund shall be made in
10 a lump sum, (ii) for amounts in excess of two hundred dollars and less
11 than two thousand four hundred dollars, the payment or refund shall be
12 two hundred dollars a month for the number of months equal to the total
13 amount thereof divided by two hundred and rounded down to the nearest
14 whole number, and the remaining balance of such payment or refund shall
15 be made in the first month thereafter, and (iii) for amounts equal to or
16 greater than two thousand four hundred dollars, the payment or refund
17 shall be paid in equal monthly payments equal to the total amount there-
18 of divided by twelve. The commissioner of taxation and finance shall
19 prepare a report on his or her findings to be submitted to the temporary
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08176-02-8
A. 5158--A 2
1 president of the senate, the speaker of the assembly and the chairs of
2 the assembly ways and means committee and the senate finance committee
3 within 180 days after the effective date of this act.
4 § 2. Section 686 of the tax law is amended by adding a new subsection
5 (j) to read as follows:
6 (j) Earned income tax credit.-- An earned income tax credit pursuant
7 to subsection (d) of section six hundred six of this article or an
8 enhanced earned income tax credit pursuant to subsection (d-1) of
9 section six hundred six of this article shall be paid to the taxpayer as
10 follows: (i) for amounts equal to or less than two hundred dollars, the
11 payment or refund shall be made in a lump sum, (ii) for amounts in
12 excess of two hundred dollars and less than two thousand four hundred
13 dollars, the payment or refund shall be two hundred dollars a month for
14 the number of months equal to the total amount thereof divided by two
15 hundred and rounded down to the nearest whole number, and the remaining
16 balance of such payment or refund shall be made in the first month ther-
17 eafter, and (iii) for amounts equal to or greater than two thousand four
18 hundred dollars, the payment or refund shall be paid in equal monthly
19 payments equal to the total amount thereof divided by twelve.
20 § 3. This act shall take effect immediately; provided, however, that
21 section two of this act shall take effect one year after it shall have
22 become a law. Effective immediately, the commissioner of taxation and
23 finance is authorized to make any addition, amendment and/or repeal of
24 any rule or regulation necessary for the implementation of this act on
25 its effective date on or before such date.