S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2498
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2025
                                ___________
 
 Introduced  by  M.  of  A. RA, JENSEN, GANDOLFO, MAHER, SLATER, BENDETT,
   BLANKENBUSH, MANKTELOW, SMULLEN, ANGELINO,  MILLER,  CHANG,  LEMONDES,
   McDONOUGH,  BRABENEC, TANNOUSIS, MORINELLO, DeSTEFANO, TAGUE, SIMPSON,
   PALMESANO, WALSH, BEEPHAN -- read once and referred to  the  Committee
   on Ways and Means

 AN ACT to amend the tax law, in relation to increasing the earned income
   tax credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of 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 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.
   The  applicable percentage shall be (i) seven and one-half percent for
 taxable years  beginning  in  nineteen  hundred  ninety-four,  (ii)  ten
 percent  for  taxable  years  beginning in nineteen hundred ninety-five,
 (iii) twenty percent for taxable years beginning after nineteen  hundred
 ninety-five  and  before  two  thousand,  (iv)  twenty-two  and one-half
 percent for taxable years beginning in  two  thousand,  (v)  twenty-five
 percent  for  taxable  years beginning in two thousand one, (vi) twenty-
 seven and one-half percent for taxable years beginning in  two  thousand
 two, [and] (vii) thirty percent for taxable years beginning in two thou-
 sand three, AND (VIII) FORTY-FIVE PERCENT FOR TAXABLE YEARS BEGINNING IN
 TWO  THOUSAND TWENTY-FIVE and thereafter. Provided, however, that if the
 reversion event, as defined in this paragraph,  occurs,  the  applicable
 percentage  shall be twenty percent for taxable years ending on or after
 the date on which the reversion  event  occurred.  The  reversion  event
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05758-01-5
              

 A. 2498                             2
 
 shall  be  deemed  to have occurred on the date on which federal action,
 including but not limited to, administrative,  statutory  or  regulatory
 changes, materially reduces or eliminates New York state's allocation of
 the  federal  temporary  assistance  for  needy families block grant, or
 materially reduces the ability of the state to spend  federal  temporary
 assistance  for  needy  families block grant funds for the earned income
 credit or to apply state general fund  spending  on  the  earned  income
 credit  toward  the  temporary assistance for needy families block grant
 maintenance of effort requirement, and the commissioner of the office of
 temporary and disability assistance shall certify the date of such event
 to the commissioner of taxation and finance, the director of  the  divi-
 sion of the budget, the speaker of the assembly and the temporary presi-
 dent of the senate.
   § 2. Subsection (d) of section 606 of the tax law is amended by adding
 a new paragraph 9 to read as follows:
   (9)  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND TWENTY-FIVE, AN EARNED INCOME TAX CREDIT PURSUANT TO  THIS  SECTION
 OR  AN ENHANCED EARNED INCOME TAX CREDIT PURSUANT TO SUBSECTION (D-1) OF
 THIS SECTION MAY, AT THE ELECTION OF THE TAXPAYER MADE VIA A FORM TO  BE
 PRESCRIBED  BY THE COMMISSIONER, BE PAID TO THE TAXPAYER AS FOLLOWS: (I)
 FOR AMOUNTS EQUAL TO OR LESS THAN TWO HUNDRED DOLLARS,  THE  PAYMENT  OR
 REFUND  SHALL  BE  MADE IN A LUMP SUM, (II) FOR AMOUNTS IN EXCESS OF TWO
 HUNDRED DOLLARS AND LESS THAN TWO THOUSAND  FOUR  HUNDRED  DOLLARS,  THE
 PAYMENT OR REFUND SHALL EQUAL THREE QUARTERLY CHECKS EACH EQUAL TO TWEN-
 TY-FIVE  PERCENT  OF  THE  TAXPAYER'S ANTICIPATED CREDIT AMOUNT, AND THE
 REMAINING BALANCE OF SUCH PAYMENT OR REFUND SHALL  BE  INCLUDED  IN  ANY
 FINAL  REFUND  OWED  TO  THE  TAXPAYER  FOLLOWING  THE COMPLETION OF THE
 TAXPAYER'S TAX RETURN, AND (III) FOR AMOUNTS EQUAL TO  OR  GREATER  THAN
 TWO  THOUSAND  FOUR HUNDRED DOLLARS, THE PAYMENT OR REFUND SHALL BE PAID
 IN EQUAL MONTHLY PAYMENTS EQUAL TO THE TOTAL AMOUNT THEREOF  DIVIDED  BY
 TWELVE.
   § 3. This act shall take effect on the one hundred twentieth day after
 it  shall have become a law. Effective immediately, the addition, amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation of this act on its effective date are authorized to be made on or
 before such effective date.