Bill Text: NY A05577 | 2023-2024 | General Assembly | Amended
Bill Title: Provides for the advance payment of the earned income tax credit to qualifying employees.
Spectrum: Partisan Bill (Democrat 35-0)
Status: (Introduced) 2024-01-03 - referred to ways and means [A05577 Detail]
Download: New_York-2023-A05577-Amended.html
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. LBD09953-05-3A. 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 shallA. 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 suchA. 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.
