NY State Senate Bill 2023-S9066

Current Bill Status - In Senate Committee Budget And Revenue 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 16, 2024	referred to budget and revenue

2023-S9066 (ACTIVE) - Details

See Assembly Version of this Bill:: A3532
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Add §679, Tax L; add §11-1763, NYC Ad Cd
Versions Introduced in Other Legislative Sessions:: 2019-2020: S6259, A8066
2021-2022: A6112

2023-S9066 (ACTIVE) - Summary

Provides for advance payment of the earned income credit by employers, the commissioner of the department of taxation and finance and the commissioner of New York City's department of finance.

2023-S9066 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9066

SPONSOR: COMRIE
 
TITLE OF BILL:

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

 
PURPOSE::

This would grant qualified workers the option to elect to receive their
earned income tax credit (EITC) through periodic payments throughout the
year rather than in a once-a-year lump.sum only.

 
SUMMARY OF PROVISIONS::

Section 1: (a)Amends the tax law and creates an advanced payment for the
earned income tax credit;

(b) Defines the earned income eligibility certificate, which shall be
furnished by the employee to the employer and certifying that the
employee will be eligible for the EITC, whether the employee has quali-

fying children, that the employee does not have an EITC certificate with
another employer, and whether or not the employee's spouse has a EITC
certificate in effect;

(c) Establishes the advanced EITC amount on the basis of the employee's
wages and in accordance with tables set forth by the commissioner of the
department of taxation and finance;

(d) Establishes that paymentsò shall be treated as payments of withhold-
ing;

(e) Establishes that advanced EITC certificates shall take effect at the
beginning of the first payroll period ending on or after the date on
which the certificate was furnished;

(f) Establishes that the commissioner shall take the necessary steps to
ensure that taxpayers with qualifying children are aware of the avail-
ability of the advanced EITC;

(g) Sets forth that excess advanced EITC payments will be recaptured in
subsequent years, however, if the taxpayer can establish that they are
requesting the advanced EITC in good-faith then such recapture provision
shall not apply.

Section 2: Establishes the effective date.

 
JUSTIFICATION::

Every year millions of New Yorkers file to claim their earned income tax
credit. For many, this is a one-time lump sum payment. received during
tax season that can help pay for food, housing, transportation, commer-
cial debt, or other debt costs. Unfortunately, for many taxpayers wait-
ing a year to receive this credit can be burdensome. Accordingly, this
receiving their tax credit the year along with their attractive way of
receiving their defray their living costs bill seeks to provide taxpay-
ers the option of in advance through period payments throughout regular

wages. For some, this might be a more credit and allowing them to better
budget and throughout the year.

 
LEGISLATIVE HISTORY::

2019 - S6259C

 
EXISTING LAW::

Currently, the EITC is disbursed only in one payment after tax returns
have been filed.

 
FISCAL IMPLICATIONS::

None

 
EFFECTIVE DATE::

This act shall take effect one year after it shall have become law.

2023-S9066 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9066
 
                             I N  S E N A T E
 
                              April 16, 2024
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 and the administrative code of the  city  of
   New York, in relation to advance payment of the earned income credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The tax law is amended by adding a new section 679 to  read
 as follows:
   §  679.  ADVANCE  PAYMENT  OF EARNED INCOME CREDIT.  (A) GENERAL RULE.
 EXCEPT AS OTHERWISE PROVIDED IN THIS  CHAPTER,  THE  COMMISSIONER  SHALL
 PROVIDE  FOR  THE  PRE-PAYMENT OF THE EARNED INCOME CREDIT TO QUALIFYING
 EMPLOYEES.
   (B) EARNED INCOME ELIGIBILITY CERTIFICATE. FOR PURPOSES OF THIS  ARTI-
 CLE,  AN  EARNED INCOME ELIGIBILITY CERTIFICATE IS A STATEMENT FURNISHED
 BY AN EMPLOYEE TO THE COMMISSIONER WHICH:
   (1) CERTIFIES THAT THE EMPLOYEE WILL BE ELIGIBLE TO RECEIVE AN  EARNED
 INCOME CREDIT OR AN ENHANCED EARNED INCOME CREDIT PROVIDED BY SUBSECTION
 (D)  OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE FOR THE TAXABLE
 YEAR,
   (2) CERTIFIES THAT THE EMPLOYEE HAS ONE OR  MORE  QUALIFYING  CHILDREN
 FOR SUCH TAXABLE YEAR,
   (3)  CERTIFIES THAT THE EMPLOYEE DOES NOT HAVE AN EARNED INCOME ELIGI-
 BILITY CERTIFICATE IN EFFECT FOR THE CALENDAR YEAR WITH RESPECT  TO  THE
 PAYMENT OF WAGES BY ANOTHER EMPLOYER, AND
   (4)  STATES  WHETHER OR NOT THE EMPLOYEE'S SPOUSE HAS AN EARNED INCOME
 ELIGIBILITY CERTIFICATE IN EFFECT.
   FOR PURPOSES OF THIS SECTION, A CERTIFICATE SHALL BE TREATED AS  BEING
 IN  EFFECT  WITH  RESPECT  TO  A SPOUSE IF SUCH A CERTIFICATE WILL BE IN
 EFFECT ON THE FIRST STATUS DETERMINATION  DATE  FOLLOWING  THE  DATE  ON
 WHICH THE EMPLOYEE FURNISHES THE STATEMENT IN QUESTION.
   (C)  EARNED  INCOME  ADVANCE AMOUNT.   FOUR ADVANCED PAYMENTS SHALL BE
 MADE TO SUCH QUALIFYING EMPLOYEES. AN ESTIMATED ANNUAL TAX CREDIT  SHALL
 BE  DETERMINED  BY THE COMMISSIONER IN ADVANCE OF THE FIRST PAYMENT, AND
 SHALL BE SUBJECT TO ADJUSTMENT DUE TO CHANGES IN  EMPLOYMENT  OR  FAMILY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01147-01-3
 S. 9066                             2
 
 STATUS  OVER  THE COURSE OF THE YEAR. PRIOR TO DISBURSEMENT, THE COMMIS-
 SIONER SHALL ENSURE  THAT  THE  QUALIFYING  EMPLOYEE'S  STATUS  HAS  NOT
 CHANGED.    THE  FIRST  THREE ADVANCED PAYMENTS SHALL BE MADE DURING THE
 TAXABLE  YEAR AND SHALL BE TWENTY PERCENT OF THE ANTICIPATED CREDIT. THE
 FOURTH ADVANCED PAYMENT SHALL BE MADE AFTER THE TAX YEAR  IS  OVER,  AND
 SHALL  BE  ADJUSTED TO MATCH THE ACTUAL CREDIT DUE. SUCH PAYMENTS SHALL,
 TO THE EXTENT PRACTICABLE BE MADE AVAILABLE VIA DIRECT DEPOSIT  AND  VIA
 ELECTRONIC BENEFIT TRANSFER (EBT) CARD.
   (D)  FORM  AND  CONTENTS  OF  CERTIFICATE.  EARNED  INCOME ELIGIBILITY
 CERTIFICATES SHALL BE IN SUCH FORM AND CONTAIN SUCH OTHER INFORMATION AS
 THE COMMISSIONER MAY BY REGULATIONS PRESCRIBE.
   (E) NOTIFICATION. (1) THE COMMISSIONER SHALL NOTIFY ALL TAXPAYERS  WHO
 HAVE  ONE  OR  MORE  QUALIFYING CHILDREN AND WHO RECEIVE A REFUND OF THE
 CREDIT UNDER SUBSECTION (D) OR (D-1) OF SECTION SIX HUNDRED SIX OF  THIS
 ARTICLE  IN WRITING OF THE AVAILABILITY OF EARNED INCOME ADVANCE AMOUNTS
 UNDER THIS  SECTION.  SUCH  WRITTEN  OR  ELECTRONIC  NOTIFICATION  SHALL
 INCLUDE  A  CLEARLY  LABELED SECTION OR WITHHOLDING FORMS AND A SEPARATE
 HANDOUT WITH INFORMATION ABOUT THE ADVANCED PAYMENT OF THE EARNED INCOME
 CREDIT IN THE SIX MOST COMMON LANGUAGES SPOKEN BY  INDIVIDUALS  IN  THIS
 STATE.
   (2)  THE COMMISSIONER SHALL PROVIDE INFORMATION OF THE AVAILABILITY OF
 EARNED INCOME ADVANCE AMOUNTS  UNDER  THIS  SECTION  TO  TAX  PREPARERS,
 ACCOUNTANTS  AND  ORGANIZATIONS  THAT ASSIST INDIVIDUALS IN TAX PREPARA-
 TION. SUCH INFORMATION SHALL BE DISTRIBUTED TO QUALIFYING INDIVIDUALS.
   (F) COORDINATION WITH ADVANCE PAYMENTS OF EARNED INCOME CREDIT.
   (1) RECAPTURE OF EXCESS ADVANCE PAYMENTS.  IF ANY PAYMENT IS  MADE  TO
 THE  INDIVIDUAL BY THE COMMISSIONER UNDER THIS SECTION DURING ANY CALEN-
 DAR YEAR, THEN THE TAX IMPOSED BY THIS CHAPTER FOR THE INDIVIDUAL'S LAST
 TAXABLE YEAR BEGINNING IN SUCH CALENDAR YEAR SHALL BE INCREASED  BY  THE
 AGGREGATE AMOUNT OF SUCH PAYMENTS.
   (2)  SAFE  HARBOR  AGAINST RECAPTURE OF EXCESS ADVANCE PAYMENTS. IF AN
 INDIVIDUAL ESTABLISHES THAT THEY ARE REQUESTING AND  RECEIVING  PAYMENTS
 UNDER  THIS  SECTION  IN  GOOD-FAITH  BY ESTABLISHING THAT THEY PROPERLY
 CLAIMED PAYMENTS UNDER THIS SECTION 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
 PARAGRAPH ONE OF THIS SUBSECTION SHALL NOT APPLY.
   (3) RECONCILIATION OF PAYMENTS  ADVANCED  AND  CREDIT  ALLOWED.    ANY
 INCREASE  IN  TAX  UNDER  THIS  SUBSECTION  SHALL  NOT BE TREATED AS TAX
 IMPOSED BY THIS CHAPTER FOR PURPOSES OF DETERMINING THE  AMOUNT  OF  ANY
 CREDIT  (OTHER  THAN  THE  CREDIT  ALLOWED BY SUBSECTION (D) OR (D-1) OF
 SECTION SIX HUNDRED SIX OF THIS ARTICLE) ALLOWABLE UNDER THIS ARTICLE.
   § 2. The administrative code of the city of New  York  is  amended  by
 adding a new section 11-1763 to read as follows:
   §  11-1763 ADVANCE PAYMENT OF EARNED INCOME CREDIT.  (A) GENERAL RULE.
 EXCEPT AS OTHERWISE PROVIDED IN THIS  CHAPTER,  THE  COMMISSIONER  SHALL
 PROVIDE  FOR  THE  PRE-PAYMENT OF THE EARNED INCOME CREDIT TO QUALIFYING
 EMPLOYEES.
   (B) EARNED INCOME ELIGIBILITY CERTIFICATE. FOR PURPOSES OF THIS  CHAP-
 TER,  AN  EARNED INCOME ELIGIBILITY CERTIFICATE IS A STATEMENT FURNISHED
 BY AN EMPLOYEE TO THE COMMISSIONER WHICH:
   (1) CERTIFIES THAT THE EMPLOYEE WILL BE ELIGIBLE TO RECEIVE AN  EARNED
 INCOME  CREDIT  OR AN ENHANCED EARNED INCOME CREDIT PROVIDED BY SUBDIVI-
 SION (D) OF SECTION 11-1706 OF THIS CHAPTER FOR THE TAXABLE YEAR,
   (2) CERTIFIES THAT THE EMPLOYEE HAS ONE OR  MORE  QUALIFYING  CHILDREN
 FOR SUCH TAXABLE YEAR,
 S. 9066                             3
 
   (3)  CERTIFIES THAT THE EMPLOYEE DOES NOT HAVE AN EARNED INCOME ELIGI-
 BILITY CERTIFICATE IN EFFECT FOR THE CALENDAR YEAR WITH RESPECT  TO  THE
 PAYMENT OF WAGES BY ANOTHER EMPLOYER, AND
   (4)  STATES  WHETHER OR NOT THE EMPLOYEE'S SPOUSE HAS AN EARNED INCOME
 ELIGIBILITY CERTIFICATE IN EFFECT.
   FOR PURPOSES OF THIS SECTION, A CERTIFICATE SHALL BE TREATED AS  BEING
 IN  EFFECT  WITH  RESPECT  TO  A SPOUSE IF SUCH A CERTIFICATE WILL BE IN
 EFFECT ON THE FIRST STATUS DETERMINATION  DATE  FOLLOWING  THE  DATE  ON
 WHICH THE EMPLOYEE FURNISHES THE STATEMENT IN QUESTION.
   (C)  EARNED  INCOME  ADVANCE AMOUNT.   FOUR ADVANCED PAYMENTS SHALL BE
 MADE TO SUCH QUALIFYING EMPLOYEES. AN ESTIMATED ANNUAL TAX CREDIT  SHALL
 BE  DETERMINED  BY THE COMMISSIONER IN ADVANCE OF THE FIRST PAYMENT, AND
 SHALL BE SUBJECT TO ADJUSTMENT DUE TO CHANGES IN  EMPLOYMENT  OR  FAMILY
 STATUS  OVER  THE COURSE OF THE YEAR. PRIOR TO DISBURSEMENT, THE COMMIS-
 SIONER SHALL ENSURE  THAT  THE  QUALIFYING  EMPLOYEE'S  STATUS  HAS  NOT
 CHANGED.    THE  FIRST  THREE ADVANCED PAYMENTS SHALL BE MADE DURING THE
 TAXABLE YEAR AND SHALL BE TWENTY PERCENT OF THE ANTICIPATED CREDIT.  THE
 FOURTH  ADVANCED  PAYMENT  SHALL BE MADE AFTER THE TAX YEAR IS OVER, AND
 SHALL BE ADJUSTED TO MATCH THE ACTUAL CREDIT DUE. SUCH  PAYMENTS  SHALL,
 TO  THE  EXTENT PRACTICABLE BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA
 ELECTRONIC BENEFIT TRANSFER (EBT) CARD.
   (D) FORM  AND  CONTENTS  OF  CERTIFICATE.  EARNED  INCOME  ELIGIBILITY
 CERTIFICATES SHALL BE IN SUCH FORM AND CONTAIN SUCH OTHER INFORMATION AS
 THE COMMISSIONER MAY BY REGULATIONS PRESCRIBE.
   (E)  NOTIFICATION. (1) THE COMMISSIONER SHALL NOTIFY ALL TAXPAYERS WHO
 HAVE ONE OR MORE QUALIFYING CHILDREN AND WHO RECEIVE  A  REFUND  OF  THE
 CREDIT UNDER SUBDIVISION (D) OF SECTION 11-1706 OF THIS CHAPTER IN WRIT-
 ING  OF  THE  AVAILABILITY  OF  EARNED INCOME ADVANCE AMOUNTS UNDER THIS
 SECTION. SUCH WRITTEN OR ELECTRONIC NOTIFICATION SHALL INCLUDE A CLEARLY
 LABELED SECTION OR WITHHOLDING FORMS AND A SEPARATE HANDOUT WITH  INFOR-
 MATION ABOUT THE ADVANCED PAYMENT OF THE EARNED INCOME CREDIT IN THE SIX
 MOST COMMON LANGUAGES SPOKEN BY INDIVIDUALS IN THIS STATE.
   (2)  THE COMMISSIONER SHALL PROVIDE INFORMATION OF THE AVAILABILITY OF
 EARNED INCOME ADVANCE AMOUNTS  UNDER  THIS  SECTION  TO  TAX  PREPARERS,
 ACCOUNTANTS  AND  ORGANIZATIONS  THAT ASSIST INDIVIDUALS IN TAX PREPARA-
 TION. SUCH INFORMATION SHALL BE DISTRIBUTED TO QUALIFYING INDIVIDUALS.
   (F) COORDINATION WITH ADVANCE PAYMENTS OF EARNED INCOME CREDIT.
   (1) RECAPTURE OF EXCESS ADVANCE PAYMENTS.  IF ANY PAYMENT IS  MADE  TO
 THE  INDIVIDUAL BY THE COMMISSIONER UNDER THIS SECTION DURING ANY CALEN-
 DAR YEAR, THEN THE TAX IMPOSED BY THIS CHAPTER FOR THE INDIVIDUAL'S LAST
 TAXABLE YEAR BEGINNING IN SUCH CALENDAR YEAR SHALL BE INCREASED  BY  THE
 AGGREGATE AMOUNT OF SUCH PAYMENTS.
   (2)  SAFE  HARBOR  AGAINST RECAPTURE OF EXCESS ADVANCE PAYMENTS. IF AN
 INDIVIDUAL ESTABLISHES THAT THEY ARE REQUESTING AND  RECEIVING  PAYMENTS
 UNDER  THIS  SECTION  IN  GOOD-FAITH  BY ESTABLISHING THAT THEY PROPERLY
 CLAIMED PAYMENTS UNDER THIS SECTION 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
 PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT APPLY.
   (3) RECONCILIATION OF PAYMENTS  ADVANCED  AND  CREDIT  ALLOWED.    ANY
 INCREASE  IN  TAX  UNDER  THIS  SUBDIVISION  SHALL NOT BE TREATED AS TAX
 IMPOSED BY THIS CHAPTER FOR PURPOSES OF DETERMINING THE  AMOUNT  OF  ANY
 CREDIT  (OTHER  THAN  THE  CREDIT  ALLOWED BY SUBDIVISION (D) OF SECTION
 11-1706 OF THIS CHAPTER) ALLOWABLE UNDER THIS CHAPTER.
   § 3. This act shall take effect one year after it shall have become  a
 law  and  shall  apply to taxable years beginning on or after such date.
 S. 9066                             4
 
 Effective immediately, the addition, amendment and/or repeal of any rule
 or regulation necessary for the implementation of this act on its effec-
 tive date are authorized to be made and  completed  on  or  before  such
 effective date.

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Senate Bill S9066

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

2023-S9066 (ACTIVE) - Details

2023-S9066 (ACTIVE) - Summary

2023-S9066 (ACTIVE) - Sponsor Memo

2023-S9066 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S9066

Share this bill

Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Budget And Revenue Committee

2023-S9066 (ACTIVE) - Details

2023-S9066 (ACTIVE) - Summary

2023-S9066 (ACTIVE) - Sponsor Memo

2023-S9066 (ACTIVE) - Bill Text download pdf

Comments