NY State Senate Bill 2023-S277C

Current Bill Status - In Senate Committee Finance 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

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 10, 2024	print number 277c
Jul 10, 2024	amend and recommit to finance
Feb 27, 2024	reported and committed to finance
Jan 08, 2024	print number 277b
Jan 08, 2024	amend and recommit to budget and revenue
Jan 03, 2024	referred to budget and revenue
Mar 01, 2023	reported and committed to finance
Feb 13, 2023	print number 277a
Feb 13, 2023	amend and recommit to budget and revenue
Jan 04, 2023	referred to budget and revenue

Votes

- Feb 27, 2024 - Budget And Revenue Committee Vote
  S277C
  
  5
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Budget And Revenue Committee Vote: Feb 27, 2024
      
      aye (5)
      
      Addabbo Jr.
      
      Comrie
      
      Gounardes
      
      Murray
      
      Parker
      
      nay (1)
      
      Weber
      
      aye wr (1)
      
      Krueger
  Feb 28, 2023 - Budget And Revenue Committee Vote
  S277C
  
  5
  
  Aye
  
  1
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Budget And Revenue Committee Vote: Feb 28, 2023
      
      aye (5)
      
      Addabbo Jr.
      
      Comrie
      
      Gounardes
      
      Murray
      
      Parker
      
      nay (1)
      
      Weber
      
      aye wr (1)
      
      Krueger

Bill Amendments

Original

C (Active)

co-Sponsors

View additional co-sponsors

2023-S277 - Details

See Assembly Version of this Bill:: A4022
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 616, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S9610

2023-S277 - Summary

Provides for a working families tax credit; directs quarterly prepayment of the credit; provides for a sliding reduction in the credit for incomes which exceed a certain threshold.

2023-S277 - Sponsor Memo

                                 
BILL NUMBER: S277

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the tax law, in relation to a New York state working
families tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

To create the New York State Working Families Tax Credit

 
SUMMARY OF PROVISIONS:

Section 1 redefines the State Earned Income Tax Credit to be for those
without qualifying children.

Section 2 clarifies that the current Empire State Child Tax Credit is
valid for years prior to January 1, 2023.

Section 3 creates the New York State Working Families Tax Credit.

Section 4 states the effective date.

 
JUSTIFICATION:

The expanded federal child tax credit provided for in the American
Rescue Plan Act successfully lifted 2.9 million children out of poverty,
driving the rate of child poverty to fall to a record low in 2021.
Despite its remarkable effectiveness, the program was not renewed. Thus,
New York must address the federal government's shortfall and provide
support for working families in our state.

The proposed NYS Working Families Tax Credit (WFTC) will streamline the
state Earned Income Tax Credit (EITC) and Empire State Child Tax Credit
(CTC) to provide working families with increased support while lessening
the additional cost to the state. The NYS WFTC fills many of the gaps of
the current state EITC and CTC, such as:

*Including children 0 - 4 years of age

*Including families regardless of citizenship status

*Eliminating the phase-in, allowing those with the lowest income to
receive the largest credit

The new system also increases the credit provided to all families by:

*Increasing the maximum credit to $1,500 per child

*Providing a $500 credit per child regardless of income

*Eliminating the cap on the number of children eligible to receive a
credit

Additionally, the new NYS WFTC will be paid out quarterly, providing
families with four payments per year instead of one lump sum annually.
With the new system, families with one to three children will receive on

average $1,090 more than they currently do. Those without children who
qualify for the state EITC will continue to receive that benefit.

The benefits of the proposed WFTC are numerous. It is estimated that the
new credit will result in a 13.4% reduction in children under the age of
18 living in poverty, with a 19.6% reduction for those under 18 living
in deep poverty. It will also lead to increased educational attainment
and employment opportunities for these children, benefitting not only
those individuals but their communities and the state at large.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments 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.

2023-S277 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    277
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced by Sens. GOUNARDES, KENNEDY, RIVERA -- read twice and ordered
   printed,  and  when printed to be committed to the Committee on Budget
   and Revenue
 
 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

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

                                                            LBD02008-01-3
 S. 277                              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-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
 S. 277                              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, 2023.

co-Sponsors

View additional co-sponsors

2023-S277A - Details

See Assembly Version of this Bill:: A4022
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 616, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S9610

2023-S277A - Summary

Provides for a working families tax credit; directs quarterly prepayment of the credit; provides for a sliding reduction in the credit for incomes which exceed a certain threshold.

2023-S277A - Sponsor Memo

                                 
BILL NUMBER: S277A

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the tax law, in relation to a New York state working
families tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

To create the New York State Working Families Tax Credit

 
SUMMARY OF PROVISIONS:

Section 1 redefines the State Earned Income Tax Credit to be for those
without qualifying children.

Section 2 clarifies that the current Empire State Child Tax Credit is
valid for years prior to January 1, 2024.

Section 3 creates the New York State Working Families Tax Credit.

Section 4 states the effective date.

 
JUSTIFICATION:

The expanded federal child tax credit provided for in the American
Rescue Plan Act successfully lifted 2.9 million children out of poverty,
driving the rate of child poverty to fall to a record low in 2021.
Despite its remarkable effectiveness, the program was not renewed. Thus,
New York must address the federal government's shortfall and provide
support for working families in our state.

The proposed NYS Working Families Tax Credit (WFTC) will streamline the
state Earned Income Tax Credit (EITC) and Empire State Child Tax Credit
(CTC) to provide working families with increased support while lessening
the additional cost to the state. The NYS WFTC fills many of the gaps of
the current state EITC and CTC, such as:

*Including children 0 - 3 years of age

*Including families regardless of citizenship status

*Eliminating the phase-in, allowing those with the lowest income to
receive the largest credit

The new system also increases the credit provided to all families by:

*Increasing the maximum credit to $1,500 per child

*Providing a $500 credit per child regardless of income

*Eliminating the cap on the number of children eligible to receive a
credit

Additionally, the new NYS WFTC will be paid out quarterly, providing
families with four payments per year instead of one lump sum annually.
With the new system, families with one to three children will receive on

average $1,090 more than they currently do. Those without children who
qualify for the state EITC will continue to receive that benefit.

The benefits of the proposed WFTC are numerous. It is estimated that the
new credit will result in a 13.4% reduction in children under the age of
18 living in poverty, with a 19.6% reduction for those under 18 living
in deep poverty. It will also lead to increased educational attainment
and employment opportunities for these children, benefitting not only
those individuals but their communities and the state at large.

 
PRIOR LEGISLATIVE HISTORY:

2022: S9610 - Referred to Rules

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments 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.

2023-S277A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  277--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sens.  GOUNARDES,  COONEY,  CHU, HOYLMAN-SIGAL, KENNEDY,
   MYRIE, RAMOS, RIVERA, SEPULVEDA -- read twice and ordered printed, and
   when printed to be committed to the Committee on Budget and Revenue --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee
 
 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

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

                                                            LBD02008-02-3
 S. 277--A                           2
 
 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
 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
 S. 277--A                           3
 
 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. 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.

co-Sponsors

View additional co-sponsors

2023-S277B - Details

See Assembly Version of this Bill:: A4022
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 616, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S9610

2023-S277B - Summary

Provides for a working families tax credit; directs quarterly prepayment of the credit; provides for a sliding reduction in the credit for incomes which exceed a certain threshold.

2023-S277B - Sponsor Memo

                                 
BILL NUMBER: S277B

SPONSOR: GOUNARDES
 
PURPOSE OR GENERAL IDEA OF BILL:

To create the New York State Working Families Tax Credit

 
SUMMARY OF PROVISIONS:

Section one of this bill phases out the State Earned Income Tax Credit
(EITC) over the course of four years for taxpayers who will instead
receive the new, Working Families Tax Credit (WFTC) created in section
three of the bill. The EITC is maintained for those with older children
and relatives who don't qualify for the WFTC as well as for childless
filers.

Section two eliminates the Empire State Child Tax Credit, which will be
replaced by the new WFTC created in section three of the bill.  Section
three phases in the Working Families Tax Credit over five years as
follows:

The maximum WFTC shall be available to all tax filers making less than
$25,000, or $50,000 if married filing jointly. The maximum credit amount

would be phased in over the course of four years as follows:

Year one: maximum of $800 credit per child

Year two: maximum of $1,100 credit per child

Year three: maximum of $1,350 credit per child

Year four: maximum of $1,600 per child, increased by all inflation since
2023 and indexed for inflation moving forward

The credit would then phase out at a rate of 2%, once a filer reaches
the following incomes:

In year one: $65,000 for single filers and $130,000 for married filing
jointly

In year two: $55,000/$110,000 In year three: $45,000/$90,000

In year four: $25,000/$50,000, indexed to inflation

The credit would be universal, however, never able to be reduced below
the following dollar amounts for any taxpayer:

In year one: $150 per child

In year two: $250 per child

In year three: $400 per child

In year four: $500 per child

In year five: $500 per child indexed to inflation

The end result is a credit that ranges from $500 to $1,600 for all
filers with qualifying children, defined as ages zero to 17, phasing out
at a rate of 2% for filers making above $25,000 or $50,000 if married
filing jointly. A tax filer would be able to claim the WFTC with either
a Social Security number or an Individual Taxpayer Identification
Number, and the credit would be fully refundable, meaning still
disbursed as an overpayment if the credit exceeds the amount of tax
owed.

In the fourth year succeeding the effective date of the bill, when
virtually all aspects of the WFTC are fully phased in and the existing,
annual EITC is fully phased out, the WFTC would be disbursed by the
Department of Taxation and Finance in quarterly installments, with the
first three payments equaling 20% (so 60% in total) of the anticipated
credit due. The final 40% would be paid after the end of the tax year
and adjusted based on the latest filing information.

The WFTC would be made available via direct deposit and electronic bene-
fits transfer (EBT) card, and treated in the same manner as the EITC in
that it would not be considered income for the purposes of determining
benefits eligibility.

Section four of this bill amends section 616 of the Tax Law to eliminate
the dependent exemption for filers with children who will now qualify
for the new, more generous WFTC.

Section five sets an immediate effective date.

 
JUSTIFICATION:;

The expanded federal child tax credit provided for in the American
Rescue Plan Act of 2021 successfully lifted 2.9 million children out of
poverty, driving the rate of child poverty to fall to a record low.
Despite its remarkable efficacy, the program was not renewed.  New York
must address the federal government's shortfall and provide support for
working families in our state.

The proposed NYS Working Families Tax Credit (WFTC) will streamline the
state Earned Income Tax Credit (EITC), Empire State Child Tax Credit
(ESCC), and the dependent exemption (DE) to provide working families
with increased support while making the most of our state's tax system
by streamlining duplicative, overlapping tax credits.

The NYS WFTC fills many of the gaps of the current state EITC and CTC,
such as:

*Including children aged 17

*Including families regardless of citizenship status

*Eliminating the phase-in, allowing those with the lowest income to
receive the largest credit

The new system also increases the credit provided to all families by:

*Increasing the maximum credit to $1,600 per child

*Providing a $500 credit per child regardless of income


*Eliminating the cap on the number of children eligible to receive a
credit

Additionally, the new NYS WFTC will be paid out quarterly, providing
families with four payments per year instead of one lump sum annually.
Those with older children and dependent relatives who fall outside of
the range of the WFTC and are currently eligible for the EITC and
dependent exemption would continue to be able to claim them.

The benefits of the proposed WFTC are numerous. It is estimated that the
new credit will result in a 13.4% reduction in children under the age of
18 living in poverty, with a 19.6% reduction for those under 18 living
in deep poverty. It will also lead to increased educational attainment
and employment opportunities for these children, benefitting not only
those individuals but their communities and the state at large.

 
PRIOR LEGISLATIVE HISTORY:

2023: S277A - Reported to Finance

2022:  S9610 - Referred to Rules

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S277B - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  277--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sens.  GOUNARDES,  COONEY,  ASHBY,  BROUK,  CHU, CLEARE,
   FERNANDEZ, HINCHEY, HOYLMAN-SIGAL, KAVANAGH,  KENNEDY,  MANNION,  MAY,
   MURRAY,  MYRIE,  RAMOS,  RIVERA,  SALAZAR, SEPULVEDA, SERRANO, WEBB --
   read twice and ordered printed, and when printed to  be  committed  to
   the  Committee  on  Budget  and  Revenue -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee  --  recommitted to the Committee on Budget and Revenue in accord-
   ance with Senate Rule 6, sec. 8 -- 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;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02008-06-4
 S. 277--B                           2
 
   (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 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.
 S. 277--B                           3
 
   (2) (A) FOR TAXABLE YEARS BEGINNING ON AND AFTER THE FIRST OF  JANUARY
 NEXT  SUCCEEDING  THE  EFFECTIVE  DATE  OF  THIS  SUBSECTION, A RESIDENT
 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
 S. 277--B                           4
 
   (V) IN THE FIFTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION  AND  EACH  TAXABLE YEAR THEREAFTER, FIVE HUNDRED DOLLARS PER
 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
 S. 277--B                           5
 
 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 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.

co-Sponsors

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2023-S277C (ACTIVE) - Details

See Assembly Version of this Bill:: A4022
Current Committee:: Senate Finance
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 616, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S9610

2023-S277C (ACTIVE) - Summary

Provides for a working families tax credit; directs quarterly prepayment of the credit; provides for a sliding reduction in the credit for incomes which exceed a certain threshold.

2023-S277C (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S277C

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the tax law, in relation to a New York state working
families tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

To create the New York State Working Families Tax Credit

 
SUMMARY OF PROVISIONS:

Section one of this bill phases out the State Earned Income Tax Credit
(EITC) over the course of four years for taxpayers who will instead
receive the new, Working Families Tax Credit (WFTC) created in section
three of the bill. The EITC is maintained for those with older children
and relatives who don't qualify for the WFTC as well as for childless
filers. Households with both 0 - 17 WFTC dependents and older dependents
would continue to receive their full EITC until year five, at which
point they would receive the more generous WFTC for dependents aged 0 -

17 and the EITC only for older dependents who are outside of the 0 - 17
WFTC qualifying ages.

Section two eliminates the Empire State Child Tax Credit, which will be
replaced by the new WFTC created in section three of the bill.

Section three phases in the Working Families Tax Credit over five years
as follows:

The maximum WFTC shall be available to all tax filers making less than
$25,000, or $50,000 if married filing jointly. The maximum credit amount
would be phased in over the course of four years as follows:

Year one: maximum of $550 credit per child
Year two: maximum of $800 credit per child, increased by all inflation
since 2023
Year three: maximum of $1,000 credit per child, increased by all
inflation since 2023
Year four: maximum of $1,200 per child, increased by all inflation since
2023
Year five: maximum of $1,600 per child, increased by all inflation since
2023

The credit would then phase out at a rate of 2%, once a filer reaches
the following incomes:  In year one: $75,000 for single filers and
$110,000 for married filing jointly

In year two: $65,000/$110,000
In year three: $55,000/$110,000
In year four: $45,000/$90,000
In year five: $25,000/$50,000, increased by all inflation since 2023

The credit would be universal, however, starting in year two, never able
to be reduced below $100 per child for any taxpayer.

The end result is a credit that ranges from $500 to $1,600 plus
inflation for all filers with qualifying children, defined as ages zero
to 17, phasing out at a rate of 2% for filers making above $25,000 or
$50,000 if married filing jointly. A tax filer would be able to claim
the WFTC with either a Social Security number or an Individual Taxpayer
Identification Number, and the credit would be fully refundable, meaning
still disbursed as an overpayment if the credit exceeds the amount of
tax owed.

The WFTC would be disbursed by the Department of Taxation and Finance in
quarterly installments, with the first three payments equaling 20% (so
60% in total) of the anticipated credit due. The final 40% would be paid
after the end of the tax year and adjusted based on the latest filing
information.

The WFTC would be made available via direct deposit and electronic bene-
fits transfer (EBT) card, and treated in the same manner as the EITC in
that it would not be considered income for the purposes of determining
benefits eligibility.

Section four of this bill amends section 616 of the Tax Law to eliminate
the dependent exemption for filers with children who will now qualify
for the new, more generous WFTC.

Section five sets an immediate effective date.

 
JUSTIFICATION:

The expanded federal child tax credit provided for in the American
Rescue Plan Act of 2021 successfully lifted 2.9 million children out of
poverty, driving the rate of child poverty to fall to a record low.
Despite its remarkable efficacy, the program was not renewed.  New York
must address the federal government's shortfall and provide support for
working families in our state.

The proposed NYS Working Families Tax Credit (WFTC) will streamline the
state Earned Income Tax Credit (EITC), Empire State Child Tax Credit
(ESCC), and the dependent exemption (DE) to provide working families
with increased support while making the most of our state's tax system
by streamlining duplicative, overlapping tax credits.

The NYS WFTC fills many of the gaps of the current state EITC and CTC,
such as:

* Including children aged 17

* Including families regardless of citizenship status

* Eliminating the phase-in, allowing those with the lowest income to
receive the largest credit

The new system also increases the credit provided to all families by:

* Increasing the maximum credit to $1,600 per child

* Providing a $100 credit per child regardless of income

Additionally, the new WFTC will be paid out quarterly, providing fami-
lies with four payments per year instead of one lump sum annually. Those
with older children and dependent relatives who fall outside of the
range of the WFTC and are currently eligible for the EITC and dependent
exemption would continue to claim them.

The benefits of the proposed WFTC are numerous. It is estimated that the
new credit will result in a 13.4% reduction in children under the age of
18 living in poverty, with a 19.6% reduction for those under 18 living
in deep poverty. It will also lead to increased educational attainment
and employment opportunities for these children, benefitting not only
those individuals but their communities and the state at large.

 
PRIOR LEGISLATIVE HISTORY:

2024: S277B - Reported to Finance

2023: S277A - Reported to Finance

2022: S9610 - Referred to Rules

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S277C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  277--C
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sens.  GOUNARDES,  COONEY,  ASHBY,  BRESLIN, BROUK, CHU,
   CLEARE, COMRIE, FERNANDEZ, GONZALEZ, HARCKHAM, HINCHEY, HOYLMAN-SIGAL,
   JACKSON, KAVANAGH, MANNION, MAY, MAYER, MURRAY, MYRIE, RAMOS,  RIVERA,
   SALAZAR,  SEPULVEDA,  SERRANO,  WEBB,  WEBER -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Budget
   and  Revenue  -- committee discharged, bill amended, ordered reprinted
   as amended and recommitted to said committee  --  recommitted  to  the
   Committee on Budget and Revenue in accordance with Senate Rule 6, sec.
   8  -- committee discharged, bill amended, ordered reprinted as amended
   and recommitted to said committee  --  reported  favorably  from  said
   committee  and  committed  to  the  Committee  on Finance -- 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  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.
                                                            LBD02008-14-4

 S. 277--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
 S. 277--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;
 S. 277--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
 S. 277--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.

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Senate Bill S277C

Sponsored By

Current Bill Status - In Senate Committee Finance Committee

Feb 27, 2024 - Budget And Revenue Committee Vote

Budget And Revenue Committee Vote: Feb 27, 2024

Feb 28, 2023 - Budget And Revenue Committee Vote

Budget And Revenue Committee Vote: Feb 28, 2023

Bill Amendments

co-Sponsors

2023-S277 - Details

2023-S277 - Summary

2023-S277 - Sponsor Memo

2023-S277 - Bill Text download pdf

co-Sponsors

2023-S277A - Details

2023-S277A - Summary

2023-S277A - Sponsor Memo

2023-S277A - Bill Text download pdf

co-Sponsors

2023-S277B - Details

2023-S277B - Summary

2023-S277B - Sponsor Memo

2023-S277B - Bill Text download pdf

co-Sponsors

2023-S277C (ACTIVE) - Details

2023-S277C (ACTIVE) - Summary

2023-S277C (ACTIVE) - Sponsor Memo

2023-S277C (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S277C

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Sponsored By

Current Bill Status - In Senate Committee Finance Committee

Bill Amendments

co-Sponsors

2023-S277 - Details

2023-S277 - Summary

2023-S277 - Sponsor Memo

2023-S277 - Bill Text download pdf

co-Sponsors

2023-S277A - Details

2023-S277A - Summary

2023-S277A - Sponsor Memo

2023-S277A - Bill Text download pdf

co-Sponsors

2023-S277B - Details

2023-S277B - Summary

2023-S277B - Sponsor Memo

2023-S277B - Bill Text download pdf

co-Sponsors

2023-S277C (ACTIVE) - Details

2023-S277C (ACTIVE) - Summary

2023-S277C (ACTIVE) - Sponsor Memo

2023-S277C (ACTIVE) - Bill Text download pdf

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