Provides for advance payment of the earned income credit by employers, the commissioner of the department of taxation and finance and the commissioner of New York City's department of finance.
STATE OF NEW YORK
________________________________________________________________________
9066
IN SENATE
April 16, 2024
___________
Introduced by Sen. COMRIE -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law and the administrative code of the city of
New York, in relation to advance payment of the earned income credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 679 to read
2 as follows:
3 § 679. Advance payment of earned income credit. (a) General rule.
4 Except as otherwise provided in this chapter, the commissioner shall
5 provide for the pre-payment of the earned income credit to qualifying
6 employees.
7 (b) Earned income eligibility certificate. For purposes of this arti-
8 cle, an earned income eligibility certificate is a statement furnished
9 by an employee to the commissioner which:
10 (1) certifies that the employee will be eligible to receive an earned
11 income credit or an enhanced earned income credit provided by subsection
12 (d) or (d-1) of section six hundred six of this article for the taxable
13 year,
14 (2) certifies that the employee has one or more qualifying children
15 for such taxable year,
16 (3) certifies that the employee does not have an earned income eligi-
17 bility certificate in effect for the calendar year with respect to the
18 payment of wages by another employer, and
19 (4) states whether or not the employee's spouse has an earned income
20 eligibility certificate in effect.
21 For purposes of this section, a certificate shall be treated as being
22 in effect with respect to a spouse if such a certificate will be in
23 effect on the first status determination date following the date on
24 which the employee furnishes the statement in question.
25 (c) Earned income advance amount. Four advanced payments shall be
26 made to such qualifying employees. An estimated annual tax credit shall
27 be determined by the commissioner in advance of the first payment, and
28 shall be subject to adjustment due to changes in employment or family
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01147-01-3
S. 9066 2
1 status over the course of the year. Prior to disbursement, the commis-
2 sioner shall ensure that the qualifying employee's status has not
3 changed. The first three advanced payments shall be made during the
4 taxable year and shall be twenty percent of the anticipated credit. The
5 fourth advanced payment shall be made after the tax year is over, and
6 shall be adjusted to match the actual credit due. Such payments shall,
7 to the extent practicable be made available via direct deposit and via
8 electronic benefit transfer (EBT) card.
9 (d) Form and contents of certificate. Earned income eligibility
10 certificates shall be in such form and contain such other information as
11 the commissioner may by regulations prescribe.
12 (e) Notification. (1) The commissioner shall notify all taxpayers who
13 have one or more qualifying children and who receive a refund of the
14 credit under subsection (d) or (d-1) of section six hundred six of this
15 article in writing of the availability of earned income advance amounts
16 under this section. Such written or electronic notification shall
17 include a clearly labeled section or withholding forms and a separate
18 handout with information about the advanced payment of the earned income
19 credit in the six most common languages spoken by individuals in this
20 state.
21 (2) The commissioner shall provide information of the availability of
22 earned income advance amounts under this section to tax preparers,
23 accountants and organizations that assist individuals in tax prepara-
24 tion. Such information shall be distributed to qualifying individuals.
25 (f) Coordination with advance payments of earned income credit.
26 (1) Recapture of excess advance payments. If any payment is made to
27 the individual by the commissioner under this section during any calen-
28 dar year, then the tax imposed by this chapter for the individual's last
29 taxable year beginning in such calendar year shall be increased by the
30 aggregate amount of such payments.
31 (2) Safe harbor against recapture of excess advance payments. If an
32 individual establishes that they are requesting and receiving payments
33 under this section in good-faith by establishing that they properly
34 claimed payments under this section in the prior year and that they have
35 not experienced a substantial change in circumstances such that they
36 have a reasonable expectation of eligibility in the current year, then
37 paragraph one of this subsection shall not apply.
38 (3) Reconciliation of payments advanced and credit allowed. Any
39 increase in tax under this subsection shall not be treated as tax
40 imposed by this chapter for purposes of determining the amount of any
41 credit (other than the credit allowed by subsection (d) or (d-1) of
42 section six hundred six of this article) allowable under this article.
43 § 2. The administrative code of the city of New York is amended by
44 adding a new section 11-1763 to read as follows:
45 § 11-1763 Advance payment of earned income credit. (a) General rule.
46 Except as otherwise provided in this chapter, the commissioner shall
47 provide for the pre-payment of the earned income credit to qualifying
48 employees.
49 (b) Earned income eligibility certificate. For purposes of this chap-
50 ter, an earned income eligibility certificate is a statement furnished
51 by an employee to the commissioner which:
52 (1) certifies that the employee will be eligible to receive an earned
53 income credit or an enhanced earned income credit provided by subdivi-
54 sion (d) of section 11-1706 of this chapter for the taxable year,
55 (2) certifies that the employee has one or more qualifying children
56 for such taxable year,
S. 9066 3
1 (3) certifies that the employee does not have an earned income eligi-
2 bility certificate in effect for the calendar year with respect to the
3 payment of wages by another employer, and
4 (4) states whether or not the employee's spouse has an earned income
5 eligibility certificate in effect.
6 For purposes of this section, a certificate shall be treated as being
7 in effect with respect to a spouse if such a certificate will be in
8 effect on the first status determination date following the date on
9 which the employee furnishes the statement in question.
10 (c) Earned income advance amount. Four advanced payments shall be
11 made to such qualifying employees. An estimated annual tax credit shall
12 be determined by the commissioner in advance of the first payment, and
13 shall be subject to adjustment due to changes in employment or family
14 status over the course of the year. Prior to disbursement, the commis-
15 sioner shall ensure that the qualifying employee's status has not
16 changed. The first three advanced payments shall be made during the
17 taxable year and shall be twenty percent of the anticipated credit. The
18 fourth advanced payment shall be made after the tax year is over, and
19 shall be adjusted to match the actual credit due. Such payments shall,
20 to the extent practicable be made available via direct deposit and via
21 electronic benefit transfer (EBT) card.
22 (d) Form and contents of certificate. Earned income eligibility
23 certificates shall be in such form and contain such other information as
24 the commissioner may by regulations prescribe.
25 (e) Notification. (1) The commissioner shall notify all taxpayers who
26 have one or more qualifying children and who receive a refund of the
27 credit under subdivision (d) of section 11-1706 of this chapter in writ-
28 ing of the availability of earned income advance amounts under this
29 section. Such written or electronic notification shall include a clearly
30 labeled section or withholding forms and a separate handout with infor-
31 mation about the advanced payment of the earned income credit in the six
32 most common languages spoken by individuals in this state.
33 (2) The commissioner shall provide information of the availability of
34 earned income advance amounts under this section to tax preparers,
35 accountants and organizations that assist individuals in tax prepara-
36 tion. Such information shall be distributed to qualifying individuals.
37 (f) Coordination with advance payments of earned income credit.
38 (1) Recapture of excess advance payments. If any payment is made to
39 the individual by the commissioner under this section during any calen-
40 dar year, then the tax imposed by this chapter for the individual's last
41 taxable year beginning in such calendar year shall be increased by the
42 aggregate amount of such payments.
43 (2) Safe harbor against recapture of excess advance payments. If an
44 individual establishes that they are requesting and receiving payments
45 under this section in good-faith by establishing that they properly
46 claimed payments under this section in the prior year and that they have
47 not experienced a substantial change in circumstances such that they
48 have a reasonable expectation of eligibility in the current year, then
49 paragraph one of this subdivision shall not apply.
50 (3) Reconciliation of payments advanced and credit allowed. Any
51 increase in tax under this subdivision shall not be treated as tax
52 imposed by this chapter for purposes of determining the amount of any
53 credit (other than the credit allowed by subdivision (d) of section
54 11-1706 of this chapter) allowable under this chapter.
55 § 3. This act shall take effect one year after it shall have become a
56 law and shall apply to taxable years beginning on or after such date.
S. 9066 4
1 Effective immediately, the addition, amendment and/or repeal of any rule
2 or regulation necessary for the implementation of this act on its effec-
3 tive date are authorized to be made and completed on or before such
4 effective date.
