NY State Senate Bill 2025-S2082

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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Jan 15, 2025	referred to budget and revenue

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2025-S2082 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§606 & 616, Tax L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S9610
2023-2024: S277

2025-S2082 (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.

2025-S2082 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2082

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 $1200 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
disbursed as an overpayment if the credit exceeds the amount of tax
owed.

The WFTC would be paid out 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 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 fami-
lies in our state.

The proposed NYS Working Families Tax Credit (WFTC), which mirrors the
top policy recommendation of the New York State Child Poverty Reduction
Advisory Council, streamlines 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.

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

* Indexing the WFTC to inflation The new system also increases the cred-
it 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 15.5% reduction in children under the age of
18 living in poverty, with a 24.4% 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: S277C - 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.

2025-S2082 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2082
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 15, 2025
                                ___________
 
 Introduced  by  Sens.  GOUNARDES,  COONEY, ASHBY, BROUK, CLEARE, COMRIE,
   FERNANDEZ,  GONZALEZ,  HARCKHAM,  HINCHEY,   HOYLMAN-SIGAL,   JACKSON,
   KAVANAGH,  LIU,  MAY,  MAYER,  MURRAY,  MYRIE, RAMOS, RIVERA, SALAZAR,
   SCARCELLA-SPANTON, SEPULVEDA, SERRANO, WEBB, WEBER -- 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. 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;
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02254-02-5
 S. 2082                             2

 
 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
 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
 S. 2082                             3
 
 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;
   (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,
 S. 2082                             4
 
 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
 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
 S. 2082                             5
 
 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 S2082

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2025-S2082 (ACTIVE) - Details

2025-S2082 (ACTIVE) - Summary

2025-S2082 (ACTIVE) - Sponsor Memo

2025-S2082 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2082

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Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

co-Sponsors

2025-S2082 (ACTIVE) - Details

2025-S2082 (ACTIVE) - Summary

2025-S2082 (ACTIVE) - Sponsor Memo

2025-S2082 (ACTIVE) - Bill Text download pdf

Comments