S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6839
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 25, 2025
                                ___________
 
 Introduced  by  Sen. WALCZYK -- 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 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05758-01-5
              

 S. 6839                             2
 
 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.