S T A T E   O F   N E W   Y O R K
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                                   2533
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 19, 2021
                                ___________
 
 Introduced by M. of A. FAHY, HEVESI, BARRON, ENGLEBRIGHT, THIELE, STERN,
   SIMON -- read once and referred to the Committee on Ways and Means
 
 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:
 
   Section  1.  Paragraph  1  of subsection (d) of section 606 of the tax
 law, as amended by section 1 of part Q of chapter  63  of  the  laws  of
 2000, is amended to read as follows:
   (1)  General.  A taxpayer shall be allowed a credit as provided herein
 equal to (i) the applicable  percentage  of  the  earned  income  credit
 allowed  under  section  thirty-two of the internal revenue code for the
 same taxable year, (ii) reduced by the credit permitted under subsection
 (b) of this section. PROVIDED, HOWEVER, FOR TAXABLE YEARS  BEGINNING  IN
 TWO  THOUSAND  TWENTY-ONE AND THEREAFTER, FOR THE PURPOSE OF DETERMINING
 THE AMOUNT OF TAX CREDIT UNDER THIS PARAGRAPH, IN CALCULATING THE EARNED
 INCOME TAX CREDIT ALLOWED  UNDER  SECTION  THIRTY-TWO  OF  THE  INTERNAL
 REVENUE  CODE,  THE PHASEOUT AMOUNT AS REFERENCED IN SECTION 32(B)(2)(A)
 OF THE INTERNAL REVENUE CODE SHALL BE READ AS TWENTY FOUR THOUSAND  NINE
 HUNDRED SIXTY DOLLARS INSTEAD OF ELEVEN THOUSAND SIX HUNDRED TEN DOLLARS
 AND SUCH PHASEOUT AMOUNT SHALL BE SUBJECT TO ADJUSTMENTS MADE IN SECTION
 THIRTY-TWO OF THE INTERNAL REVENUE CODE (THE CALENDAR YEAR REFERENCED IN
 THE  COST  OF  LIVING  ADJUSTMENT IN SECTION 32(J)(1)(B) OF THE INTERNAL
 REVENUE CODE SHALL BE APPLIED AS CALENDAR YEAR TWO  THOUSAND  TWENTY-ONE
 WITH  RESPECT TO THE PHASEOUT AMOUNTS), INCLUDING AN ADDITIONAL PHASEOUT
 AMOUNT FOR A JOINT FILER AND  INFLATION  ADJUSTMENT  SPECIFIED  IN  SUCH
 SECTION  OF THE INTERNAL REVENUE CODE FOR TAXABLE YEARS BEGINNING IN TWO
 THOUSAND TWENTY-ONE AND THEREAFTER.
   The applicable percentage shall be (i) seven and one-half percent  for
 taxable  years  beginning  in  nineteen  hundred  ninety-four,  (ii) ten
 percent for taxable years beginning  in  nineteen  hundred  ninety-five,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04856-01-1

 A. 2533                             2
 
 (iii)  twenty percent for taxable years beginning after nineteen hundred
 ninety-five and  before  two  thousand,  (iv)  twenty-two  and  one-half
 percent  for  taxable  years  beginning in two thousand, (v) twenty-five
 percent  for  taxable  years beginning in two thousand one, (vi) twenty-
 seven and one-half percent for taxable years beginning in  two  thousand
 two, [and] (vii) thirty percent for taxable years beginning in two thou-
 sand  three,  (VIII)  THIRTY-FIVE PERCENT FOR TAXABLE YEARS BEGINNING IN
 TWO THOUSAND TWENTY-ONE, AND (IX) FORTY PERCENT FOR TAXABLE YEARS BEGIN-
 NING IN TWO THOUSAND TWENTY-TWO  and  thereafter.    FOR  TAXABLE  YEARS
 BEGINNING  IN  TWO THOUSAND TWENTY-ONE AND THEREAFTER, IN THE CASE OF AN
 ELIGIBLE INDIVIDUAL WITH NO QUALIFYING CHILDREN, THE  CREDIT  PERCENTAGE
 SHALL  BE FIFTEEN AND THREE-TENTHS TO DETERMINE THE AMOUNT OF THE EARNED
 INCOME TAX CREDIT REFERENCED IN SECTION 32(B)(1) OF THE INTERNAL REVENUE
 CODE AND THE EARNED INCOME AMOUNT AND THE PHASEOUT AMOUNT OF SUCH  INDI-
 VIDUAL  SHALL BE DETERMINED AS IF SUCH EARNED INCOME AMOUNT AND PHASEOUT
 AMOUNT AS REFERENCED IN SECTION 32(B)(2)(A) OF THE INTERNAL REVENUE CODE
 ARE EQUAL TO THE AMOUNT ALLOWED FOR  AN  ELIGIBLE  INDIVIDUAL  WITH  ONE
 QUALIFYING  CHILD  AS  SUCH  AMOUNTS  ARE  REFERENCED IN SUCH PARAGRAPH.
 PROVIDED FURTHER, FOR THE PURPOSE OF THIS SUBSECTION, AN ELIGIBLE  INDI-
 VIDUAL  SHALL BE AN INDIVIDUAL WHO HAS ATTAINED NINETEEN YEARS OF AGE AS
 OPPOSED TO TWENTY-FIVE YEARS OF AGE,  IRRESPECTIVE  OF  THE  ELIGIBILITY
 REFERENCED  IN SECTION 32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE.
 FURTHERMORE, AN INDIVIDUAL OTHERWISE ELIGIBLE BUT  FOR  THE  REQUIREMENT
 UNDER  SECTION  32(M) OF THE INTERNAL REVENUE CODE SHALL BE ELIGIBLE FOR
 THIS CREDIT. Provided, however, that if the reversion event, as  defined
 in  this  paragraph,  occurs,  the applicable percentage shall be twenty
 percent for taxable years ending on or  after  the  date  on  which  the
 reversion  event  occurred.  The reversion event shall be deemed to have
 occurred on the date on which federal action, including but not  limited
 to,  administrative, statutory or regulatory changes, materially reduces
 or eliminates New York  state's  allocation  of  the  federal  temporary
 assistance  for  needy  families  block grant, or materially reduces the
 ability of the state to spend federal  temporary  assistance  for  needy
 families  block  grant  funds  for  the earned income credit or to apply
 state general fund spending on  the  earned  income  credit  toward  the
 temporary  assistance  for  needy  families  block  grant maintenance of
 effort requirement, and the commissioner of the office of temporary  and
 disability  assistance  shall  certify  the  date  of  such event to the
 commissioner of taxation and finance, the director of  the  division  of
 the  budget,  the speaker of the assembly and the temporary president of
 the senate.
   § 2. The tax law is amended by adding a new section  679  to  read  as
 follows:
   §  679.  ADVANCE  PAYMENT  OF  EARNED INCOME CREDIT. (A) GENERAL RULE.
 EXCEPT AS OTHERWISE PROVIDED IN THIS  CHAPTER,  THE  COMMISSIONER  SHALL
 PROVIDE  FOR  THE  PREPAYMENT  OF THE EARNED INCOME CREDIT TO QUALIFYING
 EMPLOYEES.
   (B) EARNED INCOME ELIGIBILITY CERTIFICATE. FOR PURPOSES OF THIS  ARTI-
 CLE,  AN  EARNED INCOME ELIGIBILITY CERTIFICATE IS A STATEMENT FURNISHED
 BY AN EMPLOYEE TO THE COMMISSIONER WHICH:
   (1) CERTIFIES THAT THE EMPLOYEE WILL BE ELIGIBLE TO RECEIVE AN  EARNED
 INCOME  CREDIT  OR AN ENHANCED EARNED INCOME CREDIT PROVIDED PURSUANT TO
 SUBSECTION (D) OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS  ARTICLE  FOR
 THE TAXABLE YEAR;

 A. 2533                             3
 
   (2)  CERTIFIES THAT THE EMPLOYEE DOES NOT HAVE AN EARNED INCOME ELIGI-
 BILITY CERTIFICATE IN EFFECT FOR THE TAXABLE YEAR WITH  RESPECT  TO  THE
 PAYMENT OF WAGES BY ANOTHER EMPLOYER; AND
   (3)  STATES  WHETHER THE EMPLOYEE'S SPOUSE HAS AN EARNED INCOME ELIGI-
 BILITY CERTIFICATE IN EFFECT. FOR PURPOSES OF THIS  SECTION,  A  CERTIF-
 ICATE  SHALL  BE  TREATED AS BEING IN EFFECT WITH RESPECT TO A SPOUSE IF
 SUCH CERTIFICATE WILL BE IN EFFECT ON  THE  FIRST  STATUS  DETERMINATION
 DATE FOLLOWING THE DATE ON WHICH THE OTHER ELIGIBLE SPOUSE FURNISHES THE
 STATEMENT IN QUESTION.
   (C) EARNED INCOME ADVANCE AMOUNT. FOUR ADVANCED PAYMENTS SHALL BE MADE
 TO  SUCH  QUALIFYING  EMPLOYEES. AN ESTIMATED ANNUAL TAX CREDIT SHALL BE
 DETERMINED BY THE COMMISSIONER IN ADVANCE OF THE FIRST PAYMENT AND SHALL
 BE SUBJECT TO ADJUSTMENT DUE TO CHANGES IN EMPLOYMENT OR  FAMILY  STATUS
 OVER  THE  COURSE  OF  THE YEAR. PRIOR TO DISBURSEMENT, THE COMMISSIONER
 SHALL ENSURE THAT THE QUALIFYING EMPLOYEE'S STATUS HAS NOT CHANGED.  THE
 FIRST  THREE ADVANCED PAYMENTS SHALL BE MADE DURING THE TAXABLE YEAR AND
 SHALL BE TWENTY PERCENT OF THE ANTICIPATED CREDIT. THE  FOURTH  ADVANCED
 PAYMENT  SHALL  BE MADE AFTER THE TAX YEAR IS OVER AND SHALL BE ADJUSTED
 TO MATCH THE ACTUAL CREDIT DUE ELIGIBLE. SUCH  PAYMENTS  SHALL,  TO  THE
 EXTENT  PRACTICABLE,  BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA ELEC-
 TRONIC BENEFIT TRANSFER (EBT) CARD.
   (D) FORM AND CONTENTS  OF  CERTIFICATE.    EARNED  INCOME  ELIGIBILITY
 CERTIFICATES  SHALL  BE IN SUCH FORM AND CONTAIN SUCH INFORMATION AS THE
 COMMISSIONER MAY DETERMINE AND PRESCRIBE.
   (E) NOTIFICATION. (1) THE COMMISSIONER SHALL NOTIFY ALL TAXPAYERS  WHO
 HAVE RECEIVED A REFUND OF THE CREDIT PURSUANT TO SUBSECTION (D) OR (D-1)
 OF  SECTION SIX HUNDRED SIX OF THIS ARTICLE BASED ON THE MOST RECENT TAX
 RETURN OR RECORD IN WRITING OF THE AVAILABILITY OF EARNED INCOME ADVANCE
 AMOUNTS UNDER THIS SECTION.  SUCH  WRITTEN  OR  ELECTRONIC  NOTIFICATION
 SHALL INCLUDE A CLEARLY LABELED SECTION OR WITHHOLDING FORMS AND A SEPA-
 RATE  HANDOUT  WITH INFORMATION ABOUT THE ADVANCED PAYMENT OF THE EARNED
 INCOME CREDIT IN THE SIX MOST COMMON LANGUAGES SPOKEN BY INDIVIDUALS  IN
 THIS STATE.
   (2)  THE COMMISSIONER SHALL PROVIDE INFORMATION OF THE AVAILABILITY OF
 EARNED INCOME ADVANCE AMOUNTS  UNDER  THIS  SECTION  TO  TAX  PREPARERS,
 ACCOUNTANTS  AND  ORGANIZATIONS  THAT ASSIST INDIVIDUALS IN TAX PREPARA-
 TION.  SUCH INFORMATION SHALL BE DISTRIBUTED TO QUALIFYING INDIVIDUALS.
   (F) COORDINATION WITH ADVANCE PAYMENTS OF EARNED INCOME CREDIT. (1) IF
 ANY PAYMENT IS MADE TO THE  INDIVIDUAL  BY  THE  DEPARTMENT  UNDER  THIS
 SECTION  DURING  ANY  CALENDAR YEAR, THE TAX IMPOSED BY THIS CHAPTER FOR
 THE INDIVIDUAL'S LAST TAXABLE YEAR BEGINNING IN SUCH CALENDAR YEAR SHALL
 BE INCREASED BY THE AGGREGATE AMOUNT OF SUCH PAYMENTS.
   (2) IF AN INDIVIDUAL ESTABLISHES THAT HE  OR  SHE  IS  REQUESTING  AND
 RECEIVING PAYMENTS UNDER THIS SECTION IN GOOD-FAITH BY ESTABLISHING THAT
 HE OR SHE PROPERLY CLAIMED PAYMENTS UNDER THIS SECTION IN THE PRIOR YEAR
 AND  THAT  HE OR SHE HAS NOT EXPERIENCED A SUBSTANTIAL CHANGE IN CIRCUM-
 STANCES SUCH THAT HE OR SHE HAS A REASONABLE EXPECTATION OF  ELIGIBILITY
 IN  THE  CURRENT  YEAR,  THEN PARAGRAPH ONE OF THIS SUBSECTION SHALL NOT
 APPLY.
   (3) ANY INCREASE IN TAX UNDER THIS SUBSECTION SHALL NOT BE TREATED  AS
 TAX  IMPOSED  BY  THIS CHAPTER FOR PURPOSES OF DETERMINING THE AMOUNT OF
 ANY CREDIT, OTHER THAN THE CREDIT ALLOWED BY SUBSECTION (D) OR (D-1)  OF
 SECTION SIX HUNDRED SIX OF THIS ARTICLE, ALLOWABLE UNDER THIS ARTICLE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2021.