S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4425
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 4, 2025
                                ___________
 
 Introduced  by  Sen.  FAHY  --  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 providing  for  the  advance
   payment of 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 and a new paragraph 9 is added 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. PROVIDED, HOWEVER, FOR TAXABLE YEARS BEGINNING IN
 TWO THOUSAND TWENTY-SEVEN AND THEREAFTER, FOR THE PURPOSE OF DETERMINING
 THE AMOUNT OF TAX CREDIT UNDER THIS PARAGRAPH, IN CALCULATING THE EARNED
 INCOME TAX CREDIT ALLOWED  UNDER  SECTION  THIRTY-TWO  OF  THE  INTERNAL
 REVENUE  CODE,  THE PHASEOUT AMOUNT AS REFERENCED IN SECTION 32(B)(2)(A)
 OF THE INTERNAL REVENUE CODE SHALL BE READ AS TWENTY-FOUR THOUSAND  NINE
 HUNDRED SIXTY DOLLARS INSTEAD OF ELEVEN THOUSAND SIX HUNDRED TEN DOLLARS
 AND SUCH PHASEOUT AMOUNT SHALL BE SUBJECT TO ADJUSTMENTS MADE IN SECTION
 THIRTY-TWO OF THE INTERNAL REVENUE CODE (THE CALENDAR YEAR REFERENCED IN
 THE  COST  OF  LIVING  ADJUSTMENT IN SECTION 32(J)(1)(B) OF THE INTERNAL
 REVENUE CODE SHALL BE APPLIED AS CALENDAR YEAR TWO THOUSAND  TWENTY-FIVE
 WITH  RESPECT TO THE PHASEOUT AMOUNTS), INCLUDING AN ADDITIONAL PHASEOUT
 AMOUNT FOR A JOINT FILER AND  INFLATION  ADJUSTMENT  SPECIFIED  IN  SUCH
 SECTION  OF THE INTERNAL REVENUE CODE FOR TAXABLE YEARS BEGINNING IN TWO
 THOUSAND TWENTY-SEVEN AND THEREAFTER.
   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
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05624-01-5
 S. 4425                             2
 
 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,  (VIII)  THIRTY-FIVE PERCENT FOR TAXABLE YEARS BEGINNING IN
 TWO THOUSAND TWENTY-SEVEN, AND (IX)  FORTY  PERCENT  FOR  TAXABLE  YEARS
 BEGINNING  IN  TWO  THOUSAND  TWENTY-EIGHT and thereafter.   FOR TAXABLE
 YEARS BEGINNING IN TWO THOUSAND TWENTY-SEVEN AND THEREAFTER, IN THE CASE
 OF AN ELIGIBLE  INDIVIDUAL  WITH  NO  QUALIFYING  CHILDREN,  THE  CREDIT
 PERCENTAGE  SHALL BE FIFTEEN AND THREE-TENTHS TO DETERMINE THE AMOUNT OF
 THE EARNED INCOME TAX CREDIT  REFERENCED  IN  SECTION  32(B)(1)  OF  THE
 INTERNAL  REVENUE  CODE  AND  THE  EARNED INCOME AMOUNT AND THE PHASEOUT
 AMOUNT OF SUCH INDIVIDUAL SHALL BE DETERMINED AS IF SUCH  EARNED  INCOME
 AMOUNT  AND  PHASEOUT AMOUNT AS REFERENCED IN SECTION 32(B)(2)(A) OF THE
 INTERNAL REVENUE CODE ARE EQUAL TO THE AMOUNT ALLOWED  FOR  AN  ELIGIBLE
 INDIVIDUAL  WITH  ONE QUALIFYING CHILD AS SUCH AMOUNTS ARE REFERENCED IN
 SUCH PARAGRAPH. PROVIDED FURTHER, FOR THE PURPOSE OF THIS SUBSECTION, AN
 ELIGIBLE INDIVIDUAL SHALL BE AN INDIVIDUAL  WHO  HAS  ATTAINED  NINETEEN
 YEARS OF AGE AS OPPOSED TO TWENTY-FIVE YEARS OF AGE, IRRESPECTIVE OF THE
 ELIGIBILITY  REFERENCED  IN  SECTION 32(C)(1)(A)(II)(II) OF THE INTERNAL
 REVENUE CODE. FURTHERMORE, AN INDIVIDUAL OTHERWISE ELIGIBLE BUT FOR  THE
 REQUIREMENT  UNDER  SECTION  32(M) OF THE INTERNAL REVENUE CODE SHALL BE
 ELIGIBLE FOR THIS CREDIT.  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 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 tempo-
 rary 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  division  of
 the  budget,  the speaker of the assembly and the temporary president of
 the senate.
   (9) INDIVIDUALS OVER AGE SIXTY-FIVE. NOTWITHSTANDING THE PROVISIONS OF
 SECTION 32(C)(1)(A)(II)(III) OF THE INTERNAL REVENUE CODE, AN INDIVIDUAL
 WHO IS OTHERWISE ELIGIBLE TO RECEIVE THE EARNED INCOME CREDIT UNDER THIS
 SUBSECTION SHALL NOT BE DEEMED INELIGIBLE DUE SOLELY TO  THE  FACT  THAT
 SUCH INDIVIDUAL HAS ATTAINED THE AGE OF SIXTY-FIVE.
   §  2.  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 PREPAYMENT 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  PURSUANT  TO
 SUBSECTION  (D)  OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE FOR
 THE TAXABLE YEAR;
 S. 4425                             3
 
   (2) CERTIFIES THAT THE EMPLOYEE DOES NOT HAVE AN EARNED INCOME  ELIGI-
 BILITY  CERTIFICATE  IN  EFFECT FOR THE TAXABLE YEAR WITH RESPECT TO THE
 PAYMENT OF WAGES BY ANOTHER EMPLOYER; AND
   (3)  STATES  WHETHER THE EMPLOYEE'S SPOUSE HAS AN EARNED INCOME ELIGI-
 BILITY CERTIFICATE IN EFFECT. FOR PURPOSES OF THIS  SECTION,  A  CERTIF-
 ICATE  SHALL  BE  TREATED AS BEING IN EFFECT WITH RESPECT TO A SPOUSE IF
 SUCH CERTIFICATE WILL BE IN EFFECT ON  THE  FIRST  STATUS  DETERMINATION
 DATE FOLLOWING THE DATE ON WHICH THE OTHER ELIGIBLE SPOUSE 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 COMMISSIONER
 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 ELIGIBLE. SUCH  PAYMENTS  SHALL,  TO  THE
 EXTENT  PRACTICABLE,  BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA ELEC-
 TRONIC BENEFIT TRANSFER (EBT) CARD.
   (D) FORM AND CONTENTS  OF  CERTIFICATE.    EARNED  INCOME  ELIGIBILITY
 CERTIFICATES  SHALL  BE IN SUCH FORM AND CONTAIN SUCH INFORMATION AS THE
 COMMISSIONER MAY DETERMINE AND PRESCRIBE.
   (E) NOTIFICATION. (1) THE COMMISSIONER SHALL NOTIFY ALL TAXPAYERS  WHO
 HAVE RECEIVED A REFUND OF THE CREDIT PURSUANT TO SUBSECTION (D) OR (D-1)
 OF  SECTION SIX HUNDRED SIX OF THIS ARTICLE BASED ON THE MOST RECENT TAX
 RETURN OR RECORD 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 SEPA-
 RATE  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 ON 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) IF
 ANY PAYMENT IS MADE TO THE  INDIVIDUAL  BY  THE  DEPARTMENT  UNDER  THIS
 SECTION  DURING  ANY  CALENDAR YEAR, 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) IF AN INDIVIDUAL ESTABLISHES THAT THEY ARE REQUESTING AND  RECEIV-
 ING  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 HAS 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) 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.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2027.