A 6000: Provides for the advance payment of the earned income tax credit to qualifying employees.

  
  STATE OF NEW YORK ________________________________________________________________________ 6000 2025-2026 Regular Sessions  IN ASSEMBLY February 25, 2025 ___________ Introduced by M. of A. SIMON, HEVESI, STERN, JACKSON, BURDICK, LUNSFORD, DINOWITZ, LUPARDO, BRONSON, GALLAGHER, GONZALEZ-ROJAS, FORREST, CRUZ, CLARK, MEEKS, GLICK, RAMOS, MITAYNES, KELLES, RIVERA, SEAWRIGHT, STIRPE, LEVENBERG, SANTABARBARA, EPSTEIN, REYES -- read once and referred to the Committee on Ways and Means 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: 1 Section 1. Paragraph 1 of subsection (d) of section 606 of the tax 2 law, as amended by section 1 of part Q of chapter 63 of the laws of 3 2000, is amended and a new paragraph 9 is added to read as follows: 4 (1) General. A taxpayer shall be allowed a credit as provided herein 5 equal to (i) the applicable percentage of the earned income credit 6 allowed under section thirty-two of the internal revenue code for the 7 same taxable year, (ii) reduced by the credit permitted under subsection 8 (b) of this section. Provided, however, for taxable years beginning in 9 two thousand twenty-seven and thereafter, for the purpose of determining 10 the amount of tax credit under this paragraph, in calculating the earned 11 income tax credit allowed under section thirty-two of the internal 12 revenue code, the phaseout amount as referenced in section 32(b)(2)(A) 13 of the internal revenue code shall be read as twenty-four thousand nine 14 hundred sixty dollars instead of eleven thousand six hundred ten dollars 15 and such phaseout amount shall be subject to adjustments made in section 16 thirty-two of the internal revenue code (the calendar year referenced in 17 the cost of living adjustment in section 32(j)(1)(B) of the internal 18 revenue code shall be applied as calendar year two thousand twenty-five 19 with respect to the phaseout amounts), including an additional phaseout 20 amount for a joint filer and inflation adjustment specified in such 21 section of the internal revenue code for taxable years beginning in two 22 thousand twenty-seven and thereafter. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05624-01-5 
 A. 6000 2 1 The applicable percentage shall be (i) seven and one-half percent for 2 taxable years beginning in nineteen hundred ninety-four, (ii) ten 3 percent for taxable years beginning in nineteen hundred ninety-five, 4 (iii) twenty percent for taxable years beginning after nineteen hundred 5 ninety-five and before two thousand, (iv) twenty-two and one-half 6 percent for taxable years beginning in two thousand, (v) twenty-five 7 percent for taxable years beginning in two thousand one, (vi) twenty- 8 seven and one-half percent for taxable years beginning in two thousand 9 two, [and] (vii) thirty percent for taxable years beginning in two thou- 10 sand three, (viii) thirty-five percent for taxable years beginning in 11 two thousand twenty-seven, and (ix) forty percent for taxable years 12 beginning in two thousand twenty-eight and thereafter. For taxable 13 years beginning in two thousand twenty-seven and thereafter, in the case 14 of an eligible individual with no qualifying children, the credit 15 percentage shall be fifteen and three-tenths to determine the amount of 16 the earned income tax credit referenced in section 32(b)(1) of the 17 internal revenue code and the earned income amount and the phaseout 18 amount of such individual shall be determined as if such earned income 19 amount and phaseout amount as referenced in section 32(b)(2)(A) of the 20 internal revenue code are equal to the amount allowed for an eligible 21 individual with one qualifying child as such amounts are referenced in 22 such paragraph. Provided further, for the purpose of this subsection, an 23 eligible individual shall be an individual who has attained nineteen 24 years of age as opposed to twenty-five years of age, irrespective of the 25 eligibility referenced in section 32(c)(1)(A)(ii)(II) of the internal 26 revenue code. Furthermore, an individual otherwise eligible but for the 27 requirement under section 32(m) of the internal revenue code shall be 28 eligible for this credit. Provided, however, that if the reversion 29 event, as defined in this paragraph, occurs, the applicable percentage 30 shall be twenty percent for taxable years ending on or after the date on 31 which the reversion event occurred. The reversion event shall be deemed 32 to have occurred on the date on which federal action, including but not 33 limited to, administrative, statutory or regulatory changes, materially 34 reduces or eliminates New York state's allocation of the federal tempo- 35 rary assistance for needy families block grant, or materially reduces 36 the ability of the state to spend federal temporary assistance for needy 37 families block grant funds for the earned income credit or to apply 38 state general fund spending on the earned income credit toward the 39 temporary assistance for needy families block grant maintenance of 40 effort requirement, and the commissioner of the office of temporary and 41 disability assistance shall certify the date of such event to the 42 commissioner of taxation and finance, the director of the division of 43 the budget, the speaker of the assembly and the temporary president of 44 the senate. 45 (9) Individuals over age sixty-five. Notwithstanding the provisions of 46 section 32(c)(1)(A)(ii)(III) of the internal revenue code, an individual 47 who is otherwise eligible to receive the earned income credit under this 48 subsection shall not be deemed ineligible due solely to the fact that 49 such individual has attained the age of sixty-five. 50 § 2. The tax law is amended by adding a new section 679 to read as 51 follows: 52 § 679. Advance payment of earned income credit. (a) General rule. 53 Except as otherwise provided in this chapter, the commissioner shall 54 provide for the prepayment of the earned income credit to qualifying 55 employees. 
 A. 6000 3 1 (b) Earned income eligibility certificate. For purposes of this arti- 2 cle, an earned income eligibility certificate is a statement furnished 3 by an employee to the commissioner which: 4 (1) certifies that the employee will be eligible to receive an earned 5 income credit or an enhanced earned income credit provided pursuant to 6 subsection (d) or (d-1) of section six hundred six of this article for 7 the taxable year; 8 (2) certifies that the employee does not have an earned income eligi- 9 bility certificate in effect for the taxable year with respect to the 10 payment of wages by another employer; and 11 (3) states whether the employee's spouse has an earned income eligi- 12 bility certificate in effect. For purposes of this section, a certif- 13 icate shall be treated as being in effect with respect to a spouse if 14 such certificate will be in effect on the first status determination 15 date following the date on which the other eligible spouse furnishes the 16 statement in question. 17 (c) Earned income advance amount. Four advanced payments shall be made 18 to such qualifying employees. An estimated annual tax credit shall be 19 determined by the commissioner in advance of the first payment and shall 20 be subject to adjustment due to changes in employment or family status 21 over the course of the year. Prior to disbursement, the commissioner 22 shall ensure that the qualifying employee's status has not changed. The 23 first three advanced payments shall be made during the taxable year and 24 shall be twenty percent of the anticipated credit. The fourth advanced 25 payment shall be made after the tax year is over and shall be adjusted 26 to match the actual credit due eligible. Such payments shall, to the 27 extent practicable, be made available via direct deposit and via elec- 28 tronic benefit transfer (EBT) card. 29 (d) Form and contents of certificate. Earned income eligibility 30 certificates shall be in such form and contain such information as the 31 commissioner may determine and prescribe. 32 (e) Notification. (1) The commissioner shall notify all taxpayers who 33 have received a refund of the credit pursuant to subsection (d) or (d-1) 34 of section six hundred six of this article based on the most recent tax 35 return or record in writing of the availability of earned income advance 36 amounts under this section. Such written or electronic notification 37 shall include a clearly labeled section or withholding forms and a sepa- 38 rate handout with information about the advanced payment of the earned 39 income credit in the six most common languages spoken by individuals in 40 this state. 41 (2) The commissioner shall provide information on the availability of 42 earned income advance amounts under this section to tax preparers, 43 accountants and organizations that assist individuals in tax prepara- 44 tion. Such information shall be distributed to qualifying individuals. 45 (f) Coordination with advance payments of earned income credit. (1) If 46 any payment is made to the individual by the department under this 47 section during any calendar year, the tax imposed by this chapter for 48 the individual's last taxable year beginning in such calendar year shall 49 be increased by the aggregate amount of such payments. 50 (2) If an individual establishes that they are requesting and receiv- 51 ing payments under this section in good faith by establishing that they 52 properly claimed payments under this section in the prior year and that 53 they have has not experienced a substantial change in circumstances such 54 that they have a reasonable expectation of eligibility in the current 55 year, then paragraph one of this subsection shall not apply. 
 A. 6000 4 1 (3) Any increase in tax under this subsection shall not be treated as 2 tax imposed by this chapter for purposes of determining the amount of 3 any credit, other than the credit allowed by subsection (d) or (d-1) of 4 section six hundred six of this article, allowable under this article. 5 § 3. This act shall take effect immediately and shall apply to taxable 6 years beginning on or after January 1, 2027.