NY State Senate Bill 2021-S1432

Senate Bill S1432

2021-2022 Legislative Session

Relates to increasing the earned income tax credit in the city of New York from five to fifteen percent

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities 1 Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to cities 1
Jan 12, 2021	referred to cities 1

2021-S1432 (ACTIVE) - Details

Current Committee:: Senate Cities 1
Law Section:: New York City Administrative Code
Laws Affected:: Amd §11-1706, NYC Ad Cd; amd §1310, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S8207
2017-2018: S3508
2019-2020: S2431

2021-S1432 (ACTIVE) - Summary

Increases the earned income tax credit in the city of New York from five to fifteen percent.

2021-S1432 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1432

SPONSOR: SERRANO
 
TITLE OF BILL:

An act to amend the administrative code of the city of New York and the
tax law, in relation to the earned income tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would increase the earned income tax credit against the city
of New York's personal income tax from five to fifteen percent

 
SUMMARY OF SPECIFIC PROVISIONS:

Amends the administrative code of the city of New York to specify that a
credit against the city personal income tax equal to fifteen percent of
the Earned Income Tax Credit (EITC) shall be allowed under section thir-
ty-two of the internal revenue code. Amends the tax law to specify that
a credit against the city personal income tax equal to fifteen percent
of the Earned Income Tax Credit shall be allowed under section thirty-

two of the internal revenue code.

 
JUSTIFICATION:

The EITC is a refundable tax credit for low to moderate income working
individuals designed to incentivize employment by offsetting federal,
state and city taxes. The EITC is one of the government's best tools in
fighting poverty. The EITC has proven to help reduce poverty, promote
employment, and ensure families can pay their bills. Studies have shown
that the EITC not only helps stimulate the local economy and reduce
poverty, but also has ancillary benefits like increased academic
achievement and improving the public health.

Recently, New York City Comptroller Scott M. Stringer, issued a report
detailing the effects of tripling New York City's portion of the EITC.
Among the report's findings were that a fifteen percent EITC in New York
City would lift 15,000 additional families out of poverty, raise the
incomes of millions more working individuals, and effectively eliminate
City income tax for nearly 6,000 New Yorkers.

Approximately, 1 in 5 New Yorkers claim the EITC. That number rises in
certain areas like the Bronx, where more than one-third of residents
claim the EITC. By tripling the EITC we have the opportunity to inject
millions of dollars into the local economy, and help millions living
near the poverty line put food on the table, repay debt, build savings,
invest in their homes, pay for education and plan for their future.

 
PRIOR LEGISLATIVE HISTORY:

2020: S.2431a- Referred to Cities

2019: S.2431a - Reported to Finance

2017-2018: S.3508 - Referred to Cities

2016: S.8207 - Referred to Cities

 
EFFECTIVE DATE:
Immediately.

2021-S1432 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1432
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 12, 2021
                                ___________
 
 Introduced  by  Sen. SERRANO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities 1
 
 AN ACT to amend the administrative code of the city of New York and  the
   tax law, in relation to 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 subdivision (d) of section  11-1706  of  the
 administrative  code  of  the  city  of  New York, as added by local law
 number 39 of the city of New York for the year 2004, is amended to  read
 as follows:
   (1)  For  taxable  years  beginning after two thousand three, a credit
 against the city personal income tax shall be  allowed,  equal  to  five
 percent  of the earned income credit allowed under section thirty-two of
 the internal revenue code for the same taxable  year;  AND  FOR  TAXABLE
 YEARS BEGINNING AFTER TWO THOUSAND TWENTY-TWO, A CREDIT AGAINST THE CITY
 PERSONAL  INCOME  TAX  SHALL BE ALLOWED, EQUAL TO FIFTEEN PERCENT OF THE
 EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF  THE  INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR.
   §  2. Paragraph 1 of subsection (f) of section 1310 of the tax law, as
 added by section 2 of part V of chapter 60  of  the  laws  of  2004,  is
 amended to read as follows:
   (1)  Notwithstanding  any  other provision of law to the contrary, any
 city having a population of one million  or  more,  acting  through  its
 local  legislative body, is hereby authorized and empowered to adopt and
 amend local laws granting in any such city, for taxable years  beginning
 after  two thousand three, a credit against the city personal income tax
 equal to five percent of the earned income credit allowed under  section
 thirty-two  of  the internal revenue code for the same taxable year; AND
 FOR TAXABLE YEARS BEGINNING AFTER  TWO  THOUSAND  TWENTY-TWO,  A  CREDIT
 AGAINST  THE CITY PERSONAL INCOME TAX SHALL BE ALLOWED, EQUAL TO FIFTEEN

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03228-01-1

 S. 1432                             2
 
 PERCENT OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF
 THE INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR.
   §  3. This act shall take effect immediately, and shall apply to taxa-
 ble years beginning on or after January 1, 2022.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.