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--A
 
                        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 --  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. 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-FOUR,  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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02008-03-3
              

 A. 4022--A                          2
 
 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 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-FOUR, 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.   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.
   (2) FOR TAX YEARS BEGINNING IN TWO THOUSAND TWENTY-FIVE 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
 A. 4022--A                          3
 
 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. 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, 2024.

                             
                     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.