S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4022
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2023
                                ___________
 
 Introduced  by  M.  of  A.  HEVESI,  KELLES, CUNNINGHAM -- read once and
   referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to a  New  York  state  working
   families 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 WITH NO QUALIFYING  CHILD  AS  DEFINED  IN  26
 U.S.C.  §  152(C)  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.
   § 2. Paragraph 1 of subsection (c-1) of section 606 of the tax law, as
 amended  by  section  1  of part P of chapter 59 of the laws of 2018, is
 amended to read as follows:
   (1) [A] FOR TAXABLE YEARS BEGINNING PRIOR TO JANUARY FIRST, TWO  THOU-
 SAND  TWENTY-THREE,  A  resident  taxpayer  shall be allowed a credit as
 provided herein equal to the greater of one hundred  dollars  times  the
 number of qualifying children of the taxpayer or the applicable percent-
 age  of  the child tax credit allowed the taxpayer under section twenty-
 four of the internal revenue code for the same  taxable  year  for  each
 qualifying  child.  Provided,  however,  in the case of a taxpayer whose
 federal adjusted gross income exceeds the  applicable  threshold  amount
 set  forth  by section 24(b)(2) of the Internal Revenue Code, the credit
 shall only be equal to the applicable percentage of the child tax credit
 allowed the taxpayer under section 24 of the Internal Revenue  Code  for
 each qualifying child. For the purposes of this subsection, a qualifying
 child shall be a child who meets the definition of qualified child under

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02008-01-3
              

 A. 4022                             2
 
 section 24(c) of the internal revenue code and is at least four years of
 age.  The  applicable  percentage  shall  be  thirty-three  percent. For
 purposes of this subsection, any reference to section 24 of the Internal
 Revenue  Code  shall  be a reference to such section as it existed imme-
 diately prior to the enactment of Public Law 115-97.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (c-2) to read as follows:
   (C-2)  NEW  YORK  STATE  WORKING  FAMILIES TAX CREDIT. (1) FOR TAXABLE
 YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, A
 RESIDENT TAXPAYER WITH A NEW YORK STATE ADJUSTED GROSS  INCOME  OF  LESS
 THAN  TWENTY-FIVE  THOUSAND  DOLLARS IN THE CASE OF AN INDIVIDUAL WHO IS
 NOT MARRIED; FIFTY THOUSAND DOLLARS IN THE CASE OF A  JOINT  RETURN;  OR
 TWENTY-FIVE  THOUSAND DOLLARS IN THE CASE OF A MARRIED INDIVIDUAL FILING
 A SEPARATE RETURN SHALL BE ALLOWED A CREDIT EQUAL TO ONE  THOUSAND  FIVE
 HUNDRED DOLLARS TIMES THE NUMBER OF QUALIFYING CHILDREN AS DEFINED IN 26
 U.S.C.  §  152 (C). THE AMOUNT OF THE CREDIT PER CHILD SHALL BE REDUCED,
 BUT NOT BELOW FIVE HUNDRED DOLLARS, BY TWENTY DOLLARS FOR EACH ONE THOU-
 SAND DOLLARS BY WHICH THE  TAXPAYER'S  NEW  YORK  STATE  ADJUSTED  GROSS
 INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL
 WHO  IS  NOT  MARRIED;  FIFTY  THOUSAND  DOLLARS  IN THE CASE OF A JOINT
 RETURN; OR TWENTY-FIVE THOUSAND DOLLARS IN THE CASE OF A  MARRIED  INDI-
 VIDUAL  FILING  A SEPARATE RETURN.  FOR PURPOSES OF THIS SUBSECTION, ANY
 REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE  A  REFER-
 ENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF
 PUBLIC LAW 115-97.
   (2)  FOR TAX YEARS BEGINNING IN TWO THOUSAND TWENTY-FOUR AND THEREAFT-
 ER, THE THRESHOLDS OF ADJUSTED GROSS INCOME AND THE  CREDIT  ALLOWED  IN
 PARAGRAPH  ONE  OF  THIS  SUBSECTION  SHALL  BE REVIEWED ANNUALLY BY THE
 COMMISSIONER AND INDEXED FOR INFLATION.
   (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (4) IN THE CASE OF A HUSBAND AND WIFE WHO FILE A JOINT FEDERAL RETURN,
 BUT  WHO  ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES SEPARATELY, THE
 CREDIT ALLOWED PURSUANT TO THIS SUBSECTION MAY BE  APPLIED  AGAINST  THE
 TAX IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
   (5)  THE  COMMISSIONER SHALL PROVIDE FOR THE PREPAYMENT OF THE WORKING
 FAMILIES CREDIT UNDER THIS SUBSECTION TO  QUALIFYING  TAXPAYERS.    FOUR
 ADVANCED  PAYMENTS SHALL BE MADE TO SUCH QUALIFYING TAXPAYERS.  AN ESTI-
 MATED 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.  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  END  OF  THE TAX YEAR AND SHALL BE
 ADJUSTED TO MATCH THE ACTUAL CREDIT DUE. SUCH  PAYMENTS  SHALL,  TO  THE
 EXTENT  PRACTICABLE,  BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA ELEC-
 TRONIC BENEFIT TRANSFER  (EBT)  CARD.  THE  COMMISSIONER  SHALL  PROVIDE
 INFORMATION  ON  THE  AVAILABILITY  OF  ADVANCED PAYMENTS OF THE WORKING
 FAMILIES CREDIT TO TAX PREPARERS,  ACCOUNTANTS  AND  ORGANIZATIONS  THAT
 ASSIST  INDIVIDUALS  IN  TAX  PREPARATION.  SUCH  INFORMATION  SHALL  BE
 DISTRIBUTED TO QUALIFYING TAXPAYERS. IF A TAXPAYER ESTABLISHES THAT THEY
 ARE REQUESTING AND RECEIVING PAYMENTS UNDER THIS PARAGRAPH IN GOOD FAITH
 BY  ESTABLISHING  THAT  THEY  PROPERLY  CLAIMED  PAYMENTS   UNDER   THIS
 A. 4022                             3
 
 SUBSECTION  IN  THE  PRIOR  YEAR  AND  THAT  THEY HAVE NOT EXPERIENCED A
 SUBSTANTIAL CHANGE IN CIRCUMSTANCES SUCH THAT  THEY  HAVE  A  REASONABLE
 EXPECTATION  OF  ELIGIBILITY IN THE CURRENT YEAR, THEN THEY SHALL NOT BE
 HELD RESPONSIBLE FOR AN INCORRECT PREPAYMENT/REFUND AMOUNT.
   (6) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE REFUNDA-
 BLE  CREDIT  AND  ITS  PAYMENT AUTHORIZED UNDER THIS SUBSECTION SHALL BE
 TREATED IN THE SAME MANNER AS THE FEDERAL EARNED INCOME TAX  CREDIT  AND
 SHALL  NOT  BE  CONSIDERED  AS  ASSETS, INCOME, OR RESOURCES TO THE SAME
 EXTENT THE CREDIT AND ITS PAYMENT WOULD BE DISREGARDED  PURSUANT  TO  26
 U.S.C. § 6409 AND THE GENERAL WELFARE DOCTRINE FOR PURPOSES OF DETERMIN-
 ING  ELIGIBILITY  FOR BENEFITS OR ASSISTANCE, OR THE AMOUNT OR EXTENT OF
 THOSE BENEFITS OR ASSISTANCE, UNDER ANY STATE OR LOCAL PROGRAM,  INCLUD-
 ING  BENEFITS  ESTABLISHED  UNDER  SECTION  NINETY-FIVE  OF  THE  SOCIAL
 SERVICES LAW.
   § 4. This act shall take effect immediately; provided that the  amend-
 ments  to paragraph  1  of subsection (d) of section 606 of the tax law,
 made  by section one of this act, shall apply to taxable years beginning
 on and after January 1, 2023.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4022--B
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2023
                                ___________
 
 Introduced by M. of A. HEVESI, KELLES, CUNNINGHAM, BURDICK, AUBRY, SHIM-
   SKY,  SILLITTI,  COLTON,  RAGA, WALKER, FORREST, BORES, DAVILA, SIMON,
   OTIS -- read once and referred to the Committee on Ways and  Means  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- recommitted to the Committee on  Ways
   and  Means  in  accordance  with  Assembly Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the tax law, in relation to a  New  York  state  working
   families tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (d) of section 606 of the tax law is amended  by
 adding a new paragraph 9 to read as follows:
   (9)  COMMENCING IN THE TAXABLE YEAR NEXT SUCCEEDING THE EFFECTIVE DATE
 OF SUBSECTION (C-2) OF THIS SECTION, THE PORTION OF  THE  EARNED  INCOME
 CREDIT  ATTRIBUTABLE TO QUALIFYING CHILDREN, AS DEFINED IN PARAGRAPH ONE
 OF SUBSECTION (C-2) OF THIS SECTION, SHALL BE REDUCED OVER THE COURSE OF
 FOUR YEARS AS FOLLOWS:
   (A) IN THE  FIRST  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE  DATE  OF
 SUBSECTION  (C-2)  OF  THIS  SECTION,  THE  APPLICABLE PERCENTAGE OF THE
 EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF  THE  INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO TWENTY-ONE;
   (B)  IN  THE  SECOND  TAXABLE  YEAR  SUCCEEDING  THE EFFECTIVE DATE OF
 SUBSECTION (C-2) OF THIS  SECTION,  THE  APPLICABLE  PERCENTAGE  OF  THE
 EARNED  INCOME  CREDIT  ALLOWED UNDER SECTION THIRTY-TWO OF THE INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO FIFTEEN;
   (C) IN THE  THIRD  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE  DATE  OF
 SUBSECTION  (C-2)  OF  THIS  SECTION,  THE  APPLICABLE PERCENTAGE OF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02008-07-4
              

 A. 4022--B                          2
 
 EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF  THE  INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO TEN;
   (D)  IN  THE  FOURTH  TAXABLE  YEAR  SUCCEEDING  THE EFFECTIVE DATE OF
 SUBSECTION (C-2) OF THIS SECTION AND EACH TAXABLE YEAR  THEREAFTER,  THE
 APPLICABLE  PERCENTAGE OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION
 THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME  TAXABLE  YEAR,  AS
 DESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION, SHALL BE REDUCED TO ZERO.
   THE  REDUCTION  DESCRIBED  IN  THIS  PARAGRAPH SHALL APPLY ONLY TO THE
 PORTION OF A TAXPAYER'S EARNED INCOME CREDIT  THAT  IS  ATTRIBUTABLE  TO
 QUALIFYING  CHILDREN  AS DEFINED IN PARAGRAPH ONE OF SUBSECTION (C-2) OF
 THIS SECTION. A TAXPAYER SHALL CONTINUE TO BE ALLOWED THE EARNED  INCOME
 CREDIT  FOR THE PORTIONS OF SUCH CREDIT ATTRIBUTABLE TO ANOTHER QUALIFY-
 ING CHILD, AS DEFINED IN 26 USC  §152(C),  OR  QUALIFYING  RELATIVE,  AS
 DEFINED  IN 26 USC §152(D), WHO DO NOT MEET THE DEFINITION OF QUALIFYING
 CHILD IN PARAGRAPH ONE OF SUBSECTION (C-2) OF THIS SECTION.
   § 2. Paragraph 1 of subsection (c-1) of section 606 of the tax law, as
 amended by section 1 of part HH of chapter 56 of the laws  of  2023,  is
 amended to read as follows:
   (1)  [A] FOR TAXABLE YEARS PRIOR TO THE FIRST OF JANUARY NEXT SUCCEED-
 ING THE EFFECTIVE DATE OF SUBSECTION (C-2) OF THIS SECTION,  A  resident
 taxpayer  shall  be  allowed  a  credit  as provided herein equal to the
 greater of one hundred dollars times the number of  qualifying  children
 of  the  taxpayer  or  the applicable percentage of the child tax credit
 allowed the taxpayer under section twenty-four of the  internal  revenue
 code  for  the  same  taxable  year for each qualifying child. Provided,
 however, in the case of a taxpayer whose federal adjusted  gross  income
 exceeds the applicable threshold amount set forth by section 24(b)(2) of
 the  Internal Revenue Code, the credit shall only be equal to the appli-
 cable percentage of the child tax  credit  allowed  the  taxpayer  under
 section  24  of the Internal Revenue Code for each qualifying child. For
 the purposes of this subsection, a qualifying child shall be a child who
 meets the definition of qualified  child  under  section  24(c)  of  the
 internal  revenue  code. The applicable percentage shall be thirty-three
 percent. For purposes of this subsection, any reference to section 24 of
 the Internal Revenue Code shall be a reference to  such  section  as  it
 existed immediately prior to the enactment of Public Law 115-97.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (c-2) to read as follows:
   (C-2) NEW YORK STATE WORKING FAMILIES  TAX  CREDIT.  (1)  DEFINITIONS.
 (A)  "ADJUSTED FOR INFLATION" SHALL MEAN THAT THE COMMISSIONER INCREASES
 THE DOLLAR AMOUNT OF A CREDIT OR ADJUSTED GROSS INCOME,  AS  APPLICABLE,
 BY  AN AMOUNT EQUAL TO SUCH DOLLAR AMOUNT MULTIPLIED BY THE COST-OF-LIV-
 ING ADJUSTMENT DETERMINED UNDER 26 USC § 1 (F)(3), FOR THE CALENDAR YEAR
 IN WHICH THE TAXABLE YEAR BEING REFERENCED BEGINS.
   (B) "ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND TWENTY-THREE" SHALL
 MEAN THE COMMISSIONER  INCREASES  THE  DOLLAR  AMOUNT  OF  A  CREDIT  OR
 ADJUSTED  GROSS  INCOME, AS APPLICABLE, BY AN AMOUNT EQUAL TO THE SUM OF
 ALL COST-OF-LIVING ADJUSTMENTS CALCULATED AND PUBLISHED BY THE  INTERNAL
 REVENUE  SERVICE  PURSUANT  TO  26  USC §1(F)(3) SINCE CALENDAR YEAR TWO
 THOUSAND TWENTY-THREE.
   (C) "QUALIFYING CHILD" OR "QUALIFYING CHILDREN" SHALL MEAN AS  DEFINED
 IN  26 USC §24(C)(1) EXCEPT THAT SUCH TERM SHALL ALSO INCLUDE QUALIFYING
 CHILDREN WHO HAVE NOT ATTAINED THE AGE OF EIGHTEEN.
   (2) (A) FOR TAXABLE YEARS BEGINNING ON AND AFTER THE FIRST OF  JANUARY
 NEXT  SUCCEEDING  THE  EFFECTIVE  DATE  OF  THIS  SUBSECTION, A RESIDENT
 A. 4022--B                          3
 
 TAXPAYER WITH A NEW YORK STATE ADJUSTED GROSS INCOME OF LESS THAN  TWEN-
 TY-FIVE  THOUSAND  DOLLARS  IN  THE  CASE  OF  AN  INDIVIDUAL WHO IS NOT
 MARRIED; FIFTY THOUSAND DOLLARS IN THE CASE OF A JOINT RETURN; OR  TWEN-
 TY-FIVE  THOUSAND  DOLLARS  IN THE CASE OF A MARRIED INDIVIDUAL FILING A
 SEPARATE RETURN SHALL BE ALLOWED A CREDIT EQUAL TO:
   (I) IN THE FIRST TAXABLE YEAR SUCCEEDING THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION, EIGHT HUNDRED DOLLARS PER QUALIFYING CHILD;
   (II)  IN THE SECOND TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, ONE THOUSAND ONE HUNDRED DOLLARS PER QUALIFYING CHILD;
   (III) IN THE THIRD TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION,  ONE THOUSAND THREE HUNDRED AND FIFTY DOLLARS PER QUALIFYING
 CHILD;
   (IV) IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION  AND  EACH  TAXABLE YEAR THEREAFTER, ONE THOUSAND SIX HUNDRED
 DOLLARS PER QUALIFYING CHILD, PROVIDED, HOWEVER, THAT THE DOLLAR  AMOUNT
 HEREIN PRESCRIBED SHALL BE ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND
 TWENTY-THREE IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF
 THIS SUBSECTION AND EACH TAXABLE YEAR THEREAFTER.
   (B)  THE  AMOUNT  OF  THE  CREDIT PER CHILD SHALL BE REDUCED BY TWENTY
 DOLLARS FOR EACH ONE THOUSAND DOLLARS BY WHICH THE TAXPAYER'S  NEW  YORK
 STATE ADJUSTED GROSS INCOME EXCEEDS:
   (I)  IN  THE  FIRST TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, SIXTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS NOT MARRIED, ONE HUNDRED THIRTY THOUSAND DOLLARS IN  THE  CASE  OF  A
 JOINT  RETURN,  OR  SIXTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED
 INDIVIDUAL FILING A SEPARATE RETURN;
   (II) IN THE SECOND TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION, FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS  NOT MARRIED, ONE HUNDRED TEN THOUSAND DOLLARS IN THE CASE OF A JOINT
 RETURN, OR FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED INDIVID-
 UAL FILING A SEPARATE RETURN;
   (III) IN THE THIRD TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION, FORTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS  NOT  MARRIED, NINETY THOUSAND DOLLARS IN THE CASE OF A JOINT RETURN,
 OR FORTY-FIVE THOUSAND DOLLARS IN  THE  CASE  OF  A  MARRIED  INDIVIDUAL
 FILING A SEPARATE RETURN; AND
   (IV)  IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SECTION AND EACH TAXABLE YEAR THEREAFTER, TWENTY-FIVE  THOUSAND  DOLLARS
 IN  THE CASE OF AN INDIVIDUAL WHO IS NOT MARRIED, FIFTY THOUSAND DOLLARS
 IN THE CASE OF A JOINT RETURN, OR TWENTY-FIVE THOUSAND  DOLLARS  IN  THE
 CASE  OF A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, PROVIDED, HOWEV-
 ER, THAT THE DOLLAR AMOUNT  HEREIN  PRESCRIBED  SHALL  BE  ADJUSTED  FOR
 INFLATION  IN  THE  FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF
 THIS SUBSECTION AND EACH TAXABLE YEAR THEREAFTER.
   (C) PROVIDED, HOWEVER, THAT THE AMOUNT OF THE CREDIT  SHALL  NEVER  BE
 REDUCED BELOW THE FOLLOWING AMOUNTS:
   (I)  IN  THE  FIRST TAXABLE YEAR NEXT SUCCEEDING THE EFFECTIVE DATE OF
 THIS SUBSECTION, ONE HUNDRED FIFTY DOLLARS PER QUALIFYING CHILD;
   (II) IN THE SECOND TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION, TWO HUNDRED FIFTY DOLLARS PER QUALIFYING CHILD;
   (III)  IN THE THIRD TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, FOUR HUNDRED DOLLARS PER QUALIFYING CHILD;
   (IV) IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION, FIVE HUNDRED DOLLARS PER QUALIFYING CHILD; AND
   (V)  IN  THE  FIFTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION AND EACH TAXABLE YEAR THEREAFTER, FIVE  HUNDRED  DOLLARS  PER
 A. 4022--B                          4
 
 QUALIFYING  CHILD,  PROVIDED,  HOWEVER,  THAT  THE  DOLLAR AMOUNT HEREIN
 PRESCRIBED SHALL BE ADJUSTED FOR INFLATION IN  THE  FIFTH  TAXABLE  YEAR
 SUCCEEDING  THE  EFFECTIVE DATE OF THIS SUBSECTION AND EACH TAXABLE YEAR
 THEREAFTER.
   (D)  SUCH RESIDENT TAXPAYER MUST PROVIDE THE SOCIAL SECURITY NUMBER OR
 INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER FOR EACH QUALIFYING  CHILD  IN
 ORDER TO RECEIVE THE CREDIT DESCRIBED IN THIS SUBSECTION.
   (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (4) IN THE CASE OF SPOUSES WHO FILE A JOINT FEDERAL  RETURN,  BUT  WHO
 ARE  REQUIRED  TO  DETERMINE THEIR NEW YORK TAXES SEPARATELY, THE CREDIT
 ALLOWED PURSUANT TO THIS SUBSECTION  MAY  BE  APPLIED  AGAINST  THE  TAX
 IMPOSED ON EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
   (5)  COMMENCING  IN  THE  FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE
 DATE OF THIS SUBSECTION, THE COMMISSIONER SHALL PROVIDE FOR THE  PREPAY-
 MENT  OF THE WORKING FAMILIES CREDIT UNDER THIS SUBSECTION TO QUALIFYING
 TAXPAYERS.   FOUR ADVANCED PAYMENTS SHALL BE  MADE  TO  SUCH  QUALIFYING
 TAXPAYERS.    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. 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 END OF THE TAX YEAR AND
 SHALL BE ADJUSTED TO MATCH THE ACTUAL CREDIT DUE. SUCH  PAYMENTS  SHALL,
 TO  THE EXTENT PRACTICABLE, BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA
 ELECTRONIC BENEFIT TRANSFER (EBT) CARD. THE COMMISSIONER  SHALL  PROVIDE
 INFORMATION  ON  THE  AVAILABILITY  OF  ADVANCED PAYMENTS OF THE WORKING
 FAMILIES CREDIT TO TAX PREPARERS, ACCOUNTANTS,  AND  ORGANIZATIONS  THAT
 ASSIST  INDIVIDUALS  IN  TAX  PREPARATION.  SUCH  INFORMATION  SHALL  BE
 DISTRIBUTED TO QUALIFYING TAXPAYERS. IF A TAXPAYER ESTABLISHES THAT THEY
 ARE REQUESTING AND RECEIVING PAYMENTS UNDER THIS PARAGRAPH IN GOOD FAITH
 BY  ESTABLISHING  THAT  THEY  PROPERLY  CLAIMED  PAYMENTS   UNDER   THIS
 SUBSECTION  IN  THE  PRIOR  YEAR  AND  THAT  THEY HAVE NOT EXPERIENCED A
 SUBSTANTIAL CHANGE IN CIRCUMSTANCES SUCH THAT  THEY  HAVE  A  REASONABLE
 EXPECTATION  OF  ELIGIBILITY IN THE CURRENT YEAR, THEN THEY SHALL NOT BE
 HELD RESPONSIBLE FOR AN INCORRECT PREPAYMENT/REFUND AMOUNT.
   (6) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE REFUNDA-
 BLE CREDIT AND ITS PAYMENT AUTHORIZED UNDER  THIS  SUBSECTION  SHALL  BE
 TREATED  IN  THE SAME MANNER AS THE FEDERAL EARNED INCOME TAX CREDIT AND
 SHALL NOT BE CONSIDERED AS ASSETS, INCOME,  OR  RESOURCES  TO  THE  SAME
 EXTENT  THE  CREDIT  AND ITS PAYMENT WOULD BE DISREGARDED PURSUANT TO 26
 U.S.C. § 6409 AND THE GENERAL WELFARE DOCTRINE FOR PURPOSES OF DETERMIN-
 ING ELIGIBILITY FOR BENEFITS OR ASSISTANCE, OR THE AMOUNT OR  EXTENT  OF
 THOSE  BENEFITS OR ASSISTANCE, UNDER ANY STATE OR LOCAL PROGRAM, INCLUD-
 ING  BENEFITS  ESTABLISHED  UNDER  SECTION  NINETY-FIVE  OF  THE  SOCIAL
 SERVICES LAW.
   §  4. Section 616 of the tax law, as amended by chapter 28 of the laws
 of 1987, subsection (b) as amended by chapter 760 of the laws  of  1992,
 is amended to read as follows:
   §  616. New York exemptions of a resident individual. (a) General. For
 taxable years beginning after nineteen hundred eighty-seven, a  resident
 individual shall be allowed a New York exemption of one thousand dollars
 for  each  exemption  for which [he is] THEY ARE entitled to a deduction
 A. 4022--B                          5
 
 for the taxable year under  section  one  hundred  fifty-one(c)  of  the
 Internal  Revenue  Code;  and  for  taxable  years beginning in nineteen
 hundred eighty-seven, a resident individual other than a taxpayer  whose
 federal  exemption  amount is zero shall be allowed a New York exemption
 of nine hundred dollars for each exemption for which [he  is]  THEY  ARE
 entitled  to  a  deduction  for  the taxable year for federal income tax
 purposes.
   (b) [Husband and wife] SPOUSES.  If the New York income  taxes  of  [a
 husband  and  wife] SPOUSES are required to be separately determined but
 their federal income tax is determined on a joint return, each  of  them
 shall be separately entitled to the New York exemptions under subsection
 (a)  of  this section to which each would be separately entitled for the
 taxable year if their federal income taxes had been determined on  sepa-
 rate returns.
   (C)  COMMENCING IN THE TAXABLE YEAR NEXT SUCCEEDING THE EFFECTIVE DATE
 OF SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, A  RESI-
 DENT  INDIVIDUAL  SHALL  NOT  BE ALLOWED THE EXEMPTION DESCRIBED IN THIS
 SECTION FOR  ANY  QUALIFYING  CHILD  AS  DEFINED  IN  PARAGRAPH  ONE  OF
 SUBSECTION  (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. A RESIDENT
 INDIVIDUAL SHALL CONTINUE TO BE ALLOWED THE EXEMPTION DESCRIBED IN  THIS
 SECTION,  HOWEVER, FOR OTHER QUALIFYING DEPENDENTS, AS DEFINED IN 26 USC
 § 152(A), WHO DO NOT MEET THE DEFINITION OF QUALIFYING  CHILD  IN  PARA-
 GRAPH  ONE  OF SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTI-
 CLE.
   § 5. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4022--C
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 9, 2023
                                ___________
 
 Introduced by M. of A. HEVESI, KELLES, CUNNINGHAM, BURDICK, AUBRY, SHIM-
   SKY,  SILLITTI,  COLTON,  RAGA, WALKER, FORREST, BORES, DAVILA, SIMON,
   OTIS, REYES, CRUZ, SEAWRIGHT, CARROLL, SHRESTHA, KIM,  BICHOTTE HERME-
   LYN,  EPSTEIN,  TAPIA,  LUNSFORD,  GONZALEZ-ROJAS,  K. BROWN, ALVAREZ,
   O'DONNELL, TAYLOR, DE LOS SANTOS, DARLING, SIMONE,  ARDILA,  L. ROSEN-
   THAL, BENDETT, LEVENBERG, GALLAHAN, MAMDANI, SEPTIMO, MITAYNES, STECK,
   BENEDETTO,  ROZIC,  GIBBS,  JACOBSON  -- read once and referred to the
   Committee on Ways and Means --  committee  discharged,  bill  amended,
   ordered  reprinted  as  amended  and  recommitted to said committee --
   recommitted to the Committee on Ways  and  Means  in  accordance  with
   Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
   reprinted  as  amended  and  recommitted  to  said  committee -- again
   reported from said committee with  amendments,  ordered  reprinted  as
   amended and recommitted to said committee
 
 AN  ACT  to  amend  the tax law, in relation to a New York state working
   families tax credit
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Subsection (d) of section 606 of the tax law is amended by
 adding a new paragraph 9 to read as follows:
   (9) COMMENCING IN THE TAXABLE YEAR NEXT SUCCEEDING THE EFFECTIVE  DATE
 OF  SUBSECTION  (C-2)  OF  THIS  SECTION,  THE  EARNED INCOME CREDIT FOR
 TAXPAYERS WITH QUALIFYING CHILDREN THROUGH AGE SEVENTEEN, AS DEFINED  IN
 PARAGRAPH ONE OF SUBSECTION (C-2) OF THIS SECTION, SHALL BE REDUCED OVER
 THE COURSE OF FOUR YEARS AS FOLLOWS:
   (A)  IN  THE  FIRST  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE DATE OF
 SUBSECTION (C-2) OF THIS  SECTION,  THE  APPLICABLE  PERCENTAGE  OF  THE
 EARNED  INCOME  CREDIT  ALLOWED UNDER SECTION THIRTY-TWO OF THE INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO TWENTY-FIVE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02008-15-4
 A. 4022--C                          2
              

 
   (B) IN THE SECOND  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE  DATE  OF
 SUBSECTION  (C-2)  OF  THIS  SECTION,  THE  APPLICABLE PERCENTAGE OF THE
 EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF  THE  INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO TWENTY;
   (C)  IN  THE  THIRD  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE DATE OF
 SUBSECTION (C-2) OF THIS  SECTION,  THE  APPLICABLE  PERCENTAGE  OF  THE
 EARNED  INCOME  CREDIT  ALLOWED UNDER SECTION THIRTY-TWO OF THE INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO FIFTEEN;
   (D) IN THE FOURTH  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE  DATE  OF
 SUBSECTION  (C-2)  OF  THIS  SECTION,  THE  APPLICABLE PERCENTAGE OF THE
 EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF  THE  INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO TEN.
   (E)  IN  THE  FIFTH  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE DATE OF
 SUBSECTION (C-2) OF THIS SECTION AND EACH TAXABLE YEAR  THEREAFTER,  THE
 APPLICABLE  PERCENTAGE  OF  THE  EARNED  INCOME TAX CREDIT ALLOWED UNDER
 SECTION THIRTY-TWO OF THE INTERNAL REVENUE CODE  FOR  THE  SAME  TAXABLE
 YEAR, AS DESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION, SHALL BE REDUCED
 TO ZERO.
   TAXPAYERS  WITH  BOTH  QUALIFYING  CHILDREN  THROUGH  AGE SEVENTEEN AS
 DEFINED IN PARAGRAPH ONE OF SUBSECTION (C-2) OF THIS SECTION AND ANOTHER
 QUALIFYING CHILD, AS DEFINED IN 26  USC  §152(C),  AND/OR  A  QUALIFYING
 RELATIVE,  AS  DEFINED  IN  26  USC §152(D), SHALL NOT BE SUBJECT TO THE
 REDUCTION OF THE EARNED INCOME TAX CREDIT PROVIDED IN SUBPARAGRAPHS  (A)
 THROUGH  (D)  OF  THIS  PARAGRAPH AND SHALL CONTINUE TO RECEIVE THE FULL
 APPLICABLE PERCENTAGE OF THE EARNED INCOME CREDIT ALLOWED UNDER  SECTION
 THIRTY-TWO  OF  THE  INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR, AS
 DESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION, UNTIL THE  FIFTH  TAXABLE
 YEAR  SUCCEEDING  THE EFFECTIVE DATE OF SUBSECTION (C-2) OF THIS SECTION
 AND EACH TAXABLE YEAR THEREAFTER, AT WHICH  POINT  SUCH  TAXPAYER  SHALL
 RECEIVE  SUCH FULL APPLICABLE PERCENTAGE ONLY FOR A QUALIFYING CHILD, AS
 DEFINED IN 26 USC §152(C), AND/OR QUALIFYING RELATIVE, AS DEFINED IN  26
 USC  §152(D),  WHO  DOES  NOT  MEET  THE  DEFINITION OF QUALIFYING CHILD
 THROUGH AGE SEVENTEEN IN PARAGRAPH  ONE  OF  SUBSECTION  (C-2)  OF  THIS
 SECTION.
   § 2. Paragraph 1 of subsection (c-1) of section 606 of the tax law, as
 amended  by  section  1 of part HH of chapter 56 of the laws of 2023, is
 amended to read as follows:
   (1) [A] FOR TAXABLE YEARS PRIOR TO THE FIRST OF JANUARY NEXT  SUCCEED-
 ING  THE  EFFECTIVE DATE OF SUBSECTION (C-2) OF THIS SECTION, A resident
 taxpayer shall be allowed a credit  as  provided  herein  equal  to  the
 greater  of  one hundred dollars times the number of qualifying children
 of the taxpayer or the applicable percentage of  the  child  tax  credit
 allowed  the  taxpayer under section twenty-four of the internal revenue
 code for the same taxable year  for  each  qualifying  child.  Provided,
 however,  in  the case of a taxpayer whose federal adjusted gross income
 exceeds the applicable threshold amount set forth by section 24(b)(2) of
 the Internal Revenue Code, the credit shall only be equal to the  appli-
 cable  percentage  of  the  child  tax credit allowed the taxpayer under
 section 24 of the Internal Revenue Code for each qualifying  child.  For
 the purposes of this subsection, a qualifying child shall be a child who
 meets  the  definition  of  qualified  child  under section 24(c) of the
 internal revenue code. The applicable percentage shall  be  thirty-three
 percent. For purposes of this subsection, any reference to section 24 of
 A. 4022--C                          3
 
 the  Internal  Revenue  Code  shall be a reference to such section as it
 existed immediately prior to the enactment of Public Law 115-97.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (c-2) to read as follows:
   (C-2) NEW YORK STATE WORKING FAMILIES  TAX  CREDIT.  (1)  DEFINITIONS.
 (A)  "ADJUSTED  FOR ALL INFLATION SINCE TWO THOUSAND TWENTY-THREE" SHALL
 MEAN THE COMMISSIONER  INCREASES  THE  DOLLAR  AMOUNT  OF  A  CREDIT  OR
 ADJUSTED  GROSS  INCOME, AS APPLICABLE, BY AN AMOUNT EQUAL TO THE SUM OF
 ALL COST-OF-LIVING ADJUSTMENTS CALCULATED AND PUBLISHED BY THE  INTERNAL
 REVENUE  SERVICE  PURSUANT  TO  26  USC §1(F)(3) SINCE CALENDAR YEAR TWO
 THOUSAND TWENTY-THREE.
   (B) "QUALIFYING CHILD" OR "QUALIFYING CHILDREN" SHALL MEAN AS  DEFINED
 IN 26 USC §24(C)(1).
   (C)  "QUALIFYING  CHILD THROUGH AGE SEVENTEEN" OR "QUALIFYING CHILDREN
 THROUGH AGE 17" SHALL MEAN AS DEFINED IN 26 USC  §24(C)(1)  EXCEPT  THAT
 SUCH  TERM  SHALL ALSO INCLUDE QUALIFYING CHILDREN WHO HAVE NOT ATTAINED
 THE AGE OF EIGHTEEN.
   (2) (A) FOR TAXABLE YEARS BEGINNING ON AND AFTER THE FIRST OF  JANUARY
 NEXT  SUCCEEDING  THE  EFFECTIVE  DATE  OF  THIS  SUBSECTION, A RESIDENT
 TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO:
   (I) IN THE FIRST TAXABLE YEAR SUCCEEDING THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION, FIVE HUNDRED AND FIFTY DOLLARS PER QUALIFYING CHILD;
   (II)  IN THE SECOND TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, EIGHT HUNDRED DOLLARS PER QUALIFYING CHILD, PROVIDED, HOWEV-
 ER, THAT THE DOLLAR AMOUNT HEREIN PRESCRIBED SHALL BE ADJUSTED  FOR  ALL
 INFLATION SINCE TWO THOUSAND TWENTY-THREE;
   (III)  IN THE THIRD TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, ONE THOUSAND DOLLARS PER QUALIFYING CHILD, PROVIDED,  HOWEV-
 ER,  THAT  THE DOLLAR AMOUNT HEREIN PRESCRIBED SHALL BE ADJUSTED FOR ALL
 INFLATION SINCE TWO THOUSAND TWENTY-THREE;
   (IV) IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION,  ONE  THOUSAND  TWO  HUNDRED  DOLLARS  PER  QUALIFYING CHILD
 THROUGH AGE SEVENTEEN, PROVIDED, HOWEVER, THAT THE DOLLAR AMOUNT  HEREIN
 PRESCRIBED  SHALL BE ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND TWEN-
 TY-THREE;
   (V) IN THE FIFTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION  AND  EACH  TAXABLE YEAR THEREAFTER, ONE THOUSAND SIX HUNDRED
 DOLLARS PER QUALIFYING CHILD THROUGH AGE SEVENTEEN,  PROVIDED,  HOWEVER,
 THAT  THE  DOLLAR  AMOUNT  HEREIN  PRESCRIBED  SHALL BE ADJUSTED FOR ALL
 INFLATION SINCE TWO THOUSAND TWENTY-THREE  IN  THE  FIFTH  TAXABLE  YEAR
 SUCCEEDING  THE  EFFECTIVE DATE OF THIS SUBSECTION AND EACH TAXABLE YEAR
 THEREAFTER.
   (B) THE AMOUNT OF THE CREDIT SHALL  BE  REDUCED,  HOWEVER,  BY  TWENTY
 DOLLARS  FOR  EACH ONE THOUSAND DOLLARS BY WHICH THE TAXPAYER'S NEW YORK
 STATE ADJUSTED GROSS INCOME EXCEEDS:
   (I) IN THE FIRST TAXABLE YEAR SUCCEEDING THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION,  SEVENTY-FIVE  THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL
 WHO IS NOT MARRIED, ONE HUNDRED TEN THOUSAND DOLLARS IN THE  CASE  OF  A
 JOINT  RETURN, OR SEVENTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED
 INDIVIDUAL FILING A SEPARATE RETURN;
   (II) IN THE SECOND TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION, SIXTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS  NOT MARRIED, ONE HUNDRED TEN THOUSAND DOLLARS IN THE CASE OF A JOINT
 RETURN, OR SIXTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED INDIVID-
 UAL FILING A SEPARATE RETURN;
 A. 4022--C                          4
 
   (III) IN THE THIRD TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION, FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS  NOT MARRIED, ONE HUNDRED TEN THOUSAND DOLLARS IN THE CASE OF A JOINT
 RETURN, OR FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED INDIVID-
 UAL FILING A SEPARATE RETURN;
   (IV)  IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, FORTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS NOT MARRIED, NINETY THOUSAND DOLLARS IN THE CASE OF A  JOINT  RETURN,
 OR  FORTY-FIVE  THOUSAND  DOLLARS  IN  THE  CASE OF A MARRIED INDIVIDUAL
 FILING A SEPARATE RETURN; AND
   (V) IN THE FIFTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION  AND  EACH  TAXABLE  YEAR  THEREAFTER,  TWENTY-FIVE  THOUSAND
 DOLLARS IN THE CASE OF AN INDIVIDUAL WHO IS NOT MARRIED, FIFTY  THOUSAND
 DOLLARS  IN  THE CASE OF A JOINT RETURN, OR TWENTY-FIVE THOUSAND DOLLARS
 IN THE CASE OF A MARRIED INDIVIDUAL FILING A SEPARATE RETURN,  PROVIDED,
 HOWEVER, THAT  THE  DOLLAR  AMOUNT  HEREIN  PRESCRIBED SHALL BE ADJUSTED
 FOR  ALL  INFLATION SINCE TWO THOUSAND TWENTY-THREE IN THE FIFTH TAXABLE
 YEAR SUCCEEDING THE  EFFECTIVE  DATE  OF THIS SUBSECTION AND EACH  TAXA-
 BLE YEAR THEREAFTER.
   (C)  PROVIDED  FURTHER,  THAT  THE AMOUNT OF THE CREDIT SHALL NEVER BE
 REDUCED BELOW ONE HUNDRED DOLLARS PER QUALIFYING CHILD IN THE SECOND AND
 THIRD TAXABLE YEARS SUCCEEDING THE EFFECTIVE DATE OF THIS SUBSECTION. IN
 THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS SUBSECTION
 AND EACH TAXABLE YEAR THEREAFTER, THE  CREDIT  SHALL  NEVER  BE  REDUCED
 BELOW ONE HUNDRED DOLLARS PER QUALIFYING CHILD THROUGH AGE SEVENTEEN.
   (D)  SUCH RESIDENT TAXPAYER MUST PROVIDE THE SOCIAL SECURITY NUMBER OR
 INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER FOR EACH QUALIFYING  CHILD  IN
 ORDER TO RECEIVE THE CREDIT DESCRIBED IN THIS SUBSECTION.
   (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (4) IN THE CASE OF SPOUSES WHO FILE A JOINT FEDERAL  RETURN,  BUT  WHO
 ARE  REQUIRED  TO  DETERMINE THEIR NEW YORK TAXES SEPARATELY, THE CREDIT
 ALLOWED PURSUANT TO THIS SUBSECTION  MAY  BE  APPLIED  AGAINST  THE  TAX
 IMPOSED ON EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
   (5)  COMMENCING  IN  THE  FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE
 DATE OF THIS SUBSECTION, THE COMMISSIONER SHALL PROVIDE FOR THE  PREPAY-
 MENT  OF THE WORKING FAMILIES CREDIT UNDER THIS SUBSECTION TO QUALIFYING
 TAXPAYERS.   FOUR ADVANCED PAYMENTS SHALL BE  MADE  TO  SUCH  QUALIFYING
 TAXPAYERS.    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. 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 END OF THE TAX YEAR AND
 SHALL BE ADJUSTED TO MATCH THE ACTUAL CREDIT DUE. SUCH  PAYMENTS  SHALL,
 TO  THE EXTENT PRACTICABLE, BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA
 ELECTRONIC BENEFIT TRANSFER (EBT) CARD. THE COMMISSIONER  SHALL  PROVIDE
 INFORMATION  ON  THE  AVAILABILITY  OF  ADVANCED PAYMENTS OF THE WORKING
 FAMILIES CREDIT TO TAX PREPARERS, ACCOUNTANTS,  AND  ORGANIZATIONS  THAT
 ASSIST  INDIVIDUALS  IN  TAX  PREPARATION.  SUCH  INFORMATION  SHALL  BE
 DISTRIBUTED TO QUALIFYING TAXPAYERS. IF A TAXPAYER ESTABLISHES THAT THEY
 ARE REQUESTING AND RECEIVING PAYMENTS UNDER THIS PARAGRAPH IN GOOD FAITH
 BY  ESTABLISHING  THAT  THEY  PROPERLY  CLAIMED  PAYMENTS   UNDER   THIS
 A. 4022--C                          5

 SUBSECTION  IN  THE  PRIOR  YEAR  AND  THAT  THEY HAVE NOT EXPERIENCED A
 SUBSTANTIAL CHANGE IN CIRCUMSTANCES SUCH THAT  THEY  HAVE  A  REASONABLE
 EXPECTATION  OF  ELIGIBILITY IN THE CURRENT YEAR, THEN THEY SHALL NOT BE
 HELD RESPONSIBLE FOR AN INCORRECT PREPAYMENT/REFUND AMOUNT.
   (6) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE REFUNDA-
 BLE  CREDIT  AND  ITS  PAYMENT AUTHORIZED UNDER THIS SUBSECTION SHALL BE
 TREATED IN THE SAME MANNER AS THE FEDERAL EARNED INCOME TAX  CREDIT  AND
 SHALL  NOT  BE  CONSIDERED  AS  ASSETS, INCOME, OR RESOURCES TO THE SAME
 EXTENT THE CREDIT AND ITS PAYMENT WOULD BE DISREGARDED  PURSUANT  TO  26
 U.S.C. § 6409 AND THE GENERAL WELFARE DOCTRINE FOR PURPOSES OF DETERMIN-
 ING  ELIGIBILITY  FOR BENEFITS OR ASSISTANCE, OR THE AMOUNT OR EXTENT OF
 THOSE BENEFITS OR ASSISTANCE, UNDER ANY STATE OR LOCAL PROGRAM,  INCLUD-
 ING  BENEFITS  ESTABLISHED  UNDER  SECTION  NINETY-FIVE  OF  THE  SOCIAL
 SERVICES LAW.
   § 4. Section 616 of the tax law, as amended by chapter 28 of the  laws
 of  1987,  subsection (b) as amended by chapter 760 of the laws of 1992,
 is amended to read as follows:
   § 616. New York exemptions of a resident individual. (a) General.  For
 taxable  years beginning after nineteen hundred eighty-seven, a resident
 individual shall be allowed a New York exemption of one thousand dollars
 for each exemption for which [he is] THEY ARE entitled  to  a  deduction
 for  the  taxable  year  under  section  one hundred fifty-one(c) of the
 Internal Revenue Code; and  for  taxable  years  beginning  in  nineteen
 hundred  eighty-seven, a resident individual other than a taxpayer whose
 federal exemption amount is zero shall be allowed a New  York  exemption
 of  nine  hundred  dollars for each exemption for which [he is] THEY ARE
 entitled to a deduction for the taxable  year  for  federal  income  tax
 purposes.
   (b)  [Husband  and wife] SPOUSES.   If the New York income taxes of [a
 husband and wife] SPOUSES are required to be separately  determined  but
 their  federal  income tax is determined on a joint return, each of them
 shall be separately entitled to the New York exemptions under subsection
 (a) of this section to which each would be separately entitled  for  the
 taxable  year if their federal income taxes had been determined on sepa-
 rate returns.
   (C) COMMENCING IN THE SECOND TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE
 DATE  OF  SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, A
 RESIDENT INDIVIDUAL SHALL NOT BE ALLOWED THE EXEMPTION DESCRIBED IN THIS
 SECTION FOR ANY QUALIFYING CHILD AS DEFINED IN SUBPARAGRAPH (B) OF PARA-
 GRAPH ONE OF SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF  THIS  ARTI-
 CLE.    COMMENCING  IN  THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE
 DATE OF SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS  ARTICLE,  A
 RESIDENT INDIVIDUAL SHALL NOT BE ALLOWED THE EXEMPTION DESCRIBED IN THIS
 SECTION  FOR  ANY  QUALIFYING  CHILD THROUGH AGE SEVENTEEN AS DEFINED IN
 SUBPARAGRAPH (C) OF PARAGRAPH ONE OF SUBSECTION  (C-2)  OF  SECTION  SIX
 HUNDRED SIX OF THIS ARTICLE. IN ALL YEARS ON OR AFTER THE EFFECTIVE DATE
 OF SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, HOWEVER,
 A  RESIDENT  INDIVIDUAL  SHALL  CONTINUE  TO  BE  ALLOWED  THE EXEMPTION
 DESCRIBED IN THIS SECTION FOR OTHER QUALIFYING DEPENDENTS, AS DEFINED IN
 26 USC § 152(A), WHO DO NOT MEET THE DEFINITION OF QUALIFYING  CHILD  IN
 SUBPARAGRAPH  (B)  OF  PARAGRAPH  ONE OF SUBSECTION (C-2) OF SECTION SIX
 HUNDRED SIX OF THIS ARTICLE AND QUALIFYING CHILD THROUGH  AGE  SEVENTEEN
 AS  DEFINED  IN SUBPARAGRAPH (C) OF PARAGRAPH ONE OF SUBSECTION (C-2) OF
 SECTION SIX HUNDRED SIX OF THIS ARTICLE.
   § 5. This act shall take effect immediately.