Bill Text: NY S06259 | 2019-2020 | General Assembly | Amended
Bill Title: Provides for advance payment of the earned income credit by employers, the commissioner of the department of tax and finance and the commissioner of New York City's department of finance.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Engrossed - Dead) 2020-12-28 - COMMITTED TO RULES [S06259 Detail]
Download: New_York-2019-S06259-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6259--C 2019-2020 Regular Sessions IN SENATE May 30, 2019 ___________ Introduced by Sens. BENJAMIN, LIU -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Budg- et and Revenue in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13069-09-0S. 6259--C 2 1 (4) states whether or not the employee's spouse has an earned income 2 eligibility certificate in effect. 3 For purposes of this section, a certificate shall be treated as being 4 in effect with respect to a spouse if such a certificate will be in 5 effect on the first status determination date following the date on 6 which the employee furnishes the statement in question. 7 (c) Earned income advance amount. Four advanced payments shall be 8 made to such qualifying employees. An estimated annual tax credit shall 9 be determined by the commissioner in advance of the first payment, and 10 shall be subject to adjustment due to changes in employment or family 11 status over the course of the year. Prior to disbursement, the commis- 12 sioner shall ensure that the qualifying employee's status has not 13 changed. The first three advanced payments shall be made during the 14 taxable year and shall be twenty percent of the anticipated credit. The 15 fourth advanced payment shall be made after the tax year is over, and 16 shall be adjusted to match the actual credit due. Such payments shall, 17 to the extent practicable be made available via direct deposit and via 18 electronic benefit transfer (EBT) card. 19 (d) Form and contents of certificate. Earned income eligibility 20 certificates shall be in such form and contain such other information as 21 the commissioner may by regulations prescribe. 22 (e) Notification. (1) The commissioner shall notify all taxpayers who 23 have one or more qualifying children and who receive a refund of the 24 credit under subsection (d) or (d-1) of section six hundred six of this 25 article in writing of the availability of earned income advance amounts 26 under this section. Such written or electronic notification shall 27 include a clearly labeled section or withholding forms and a separate 28 handout with information about the advanced payment of the earned income 29 credit in the six most common languages spoken by individuals in this 30 state. 31 (2) The commissioner shall provide information of the availability of 32 earned income advance amounts under this section to tax preparers, 33 accountants and organizations that assist individuals in tax prepara- 34 tion. Such information shall be distributed to qualifying individuals. 35 (f) Coordination with advance payments of earned income credit. 36 (1) Recapture of excess advance payments. If any payment is made to 37 the individual by the commissioner under this section during any calen- 38 dar year, then the tax imposed by this chapter for the individual's last 39 taxable year beginning in such calendar year shall be increased by the 40 aggregate amount of such payments. 41 (2) Safe harbor against recapture of excess advance payments. If an 42 individual establishes that they are requesting and receiving payments 43 under this section in good-faith by establishing that they properly 44 claimed payments under this section in the prior year and that they have 45 not experienced a substantial change in circumstances such that they 46 have a reasonable expectation of eligibility in the current year, then 47 paragraph one of this subsection shall not apply. 48 (3) Reconciliation of payments advanced and credit allowed. Any 49 increase in tax under this subsection shall not be treated as tax 50 imposed by this chapter for purposes of determining the amount of any 51 credit (other than the credit allowed by subsection (d) or (d-1) of 52 section six hundred six of this article) allowable under this article. 53 § 2. The administrative code of the city of New York is amended by 54 adding a new section 11-1763 to read as follows: 55 § 11-1763 Advance payment of earned income credit. (a) General rule. 56 Except as otherwise provided in this chapter, the commissioner shallS. 6259--C 3 1 provide for the pre-payment of the earned income credit to qualifying 2 employees. 3 (b) Earned income eligibility certificate. For purposes of this chap- 4 ter, 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 by subdivi- 8 sion (d) of section 11-1706 of this chapter for the taxable year, 9 (2) certifies that the employee has one or more qualifying children 10 for such taxable year, 11 (3) certifies that the employee does not have an earned income eligi- 12 bility certificate in effect for the calendar year with respect to the 13 payment of wages by another employer, and 14 (4) states whether or not the employee's spouse has an earned income 15 eligibility certificate in effect. 16 For purposes of this section, a certificate shall be treated as being 17 in effect with respect to a spouse if such a certificate will be in 18 effect on the first status determination date following the date on 19 which the employee furnishes the statement in question. 20 (c) Earned income advance amount. Four advanced payments shall be 21 made to such qualifying employees. An estimated annual tax credit shall 22 be determined by the commissioner in advance of the first payment, and 23 shall be subject to adjustment due to changes in employment or family 24 status over the course of the year. Prior to disbursement, the commis- 25 sioner shall ensure that the qualifying employee's status has not 26 changed. The first three advanced payments shall be made during the 27 taxable year and shall be twenty percent of the anticipated credit. The 28 fourth advanced payment shall be made after the tax year is over, and 29 shall be adjusted to match the actual credit due. Such payments shall, 30 to the extent practicable be made available via direct deposit and via 31 electronic benefit transfer (EBT) card. 32 (d) Form and contents of certificate. Earned income eligibility 33 certificates shall be in such form and contain such other information as 34 the commissioner may by regulations prescribe. 35 (e) Notification. (1) The commissioner shall notify all taxpayers who 36 have one or more qualifying children and who receive a refund of the 37 credit under subdivision (d) of section 11-1706 of this chapter in writ- 38 ing of the availability of earned income advance amounts under this 39 section. Such written or electronic notification shall include a clearly 40 labeled section or withholding forms and a separate handout with infor- 41 mation about the advanced payment of the earned income credit in the six 42 most common languages spoken by individuals in this state. 43 (2) The commissioner shall provide information of 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. 48 (1) Recapture of excess advance payments. If any payment is made to 49 the individual by the commissioner under this section during any calen- 50 dar year, then the tax imposed by this chapter for the individual's last 51 taxable year beginning in such calendar year shall be increased by the 52 aggregate amount of such payments. 53 (2) Safe harbor against recapture of excess advance payments. If an 54 individual establishes that they are requesting and receiving payments 55 under this section in good-faith by establishing that they properly 56 claimed payments under this section in the prior year and that they haveS. 6259--C 4 1 not experienced a substantial change in circumstances such that they 2 have a reasonable expectation of eligibility in the current year, then 3 paragraph one of this subdivision shall not apply. 4 (3) Reconciliation of payments advanced and credit allowed. Any 5 increase in tax under this subdivision shall not be treated as tax 6 imposed by this chapter for purposes of determining the amount of any 7 credit (other than the credit allowed by subdivision (d) of section 8 11-1706 of this chapter) allowable under this chapter. 9 § 3. This act shall take effect one year after it shall have become a 10 law and shall apply to taxable years beginning on or after such date. 11 Effective immediately, the addition, amendment and/or repeal of any rule 12 or regulation necessary for the implementation of this act on its effec- 13 tive date are authorized to be made and completed on or before such 14 effective date.