S T A T E O F N E W Y O R K
________________________________________________________________________
3532
2023-2024 Regular Sessions
I N A S S E M B L Y
February 3, 2023
___________
Introduced by M. of A. ZINERMAN, BURDICK -- read once and referred to
the Committee on Ways and Means
AN ACT to amend the tax law and the administrative code of the city of
New York, in relation to advance payment of the earned income credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 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 PRE-PAYMENT 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 BY SUBSECTION
(D) OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE FOR THE TAXABLE
YEAR,
(2) CERTIFIES THAT THE EMPLOYEE HAS ONE OR MORE QUALIFYING CHILDREN
FOR SUCH TAXABLE YEAR,
(3) CERTIFIES THAT THE EMPLOYEE DOES NOT HAVE AN EARNED INCOME ELIGI-
BILITY CERTIFICATE IN EFFECT FOR THE CALENDAR YEAR WITH RESPECT TO THE
PAYMENT OF WAGES BY ANOTHER EMPLOYER, AND
(4) STATES WHETHER OR NOT THE EMPLOYEE'S SPOUSE HAS AN EARNED INCOME
ELIGIBILITY CERTIFICATE IN EFFECT.
FOR PURPOSES OF THIS SECTION, A CERTIFICATE SHALL BE TREATED AS BEING
IN EFFECT WITH RESPECT TO A SPOUSE IF SUCH A CERTIFICATE WILL BE IN
EFFECT ON THE FIRST STATUS DETERMINATION DATE FOLLOWING THE DATE ON
WHICH THE EMPLOYEE FURNISHES THE STATEMENT IN QUESTION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01147-01-3
A. 3532 2
(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 COMMIS-
SIONER 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. SUCH PAYMENTS SHALL,
TO THE EXTENT PRACTICABLE BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA
ELECTRONIC BENEFIT TRANSFER (EBT) CARD.
(D) FORM AND CONTENTS OF CERTIFICATE. EARNED INCOME ELIGIBILITY
CERTIFICATES SHALL BE IN SUCH FORM AND CONTAIN SUCH OTHER INFORMATION AS
THE COMMISSIONER MAY BY REGULATIONS PRESCRIBE.
(E) NOTIFICATION. (1) THE COMMISSIONER SHALL NOTIFY ALL TAXPAYERS WHO
HAVE ONE OR MORE QUALIFYING CHILDREN AND WHO RECEIVE A REFUND OF THE
CREDIT UNDER SUBSECTION (D) OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS
ARTICLE 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 SEPARATE
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 OF 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) RECAPTURE OF EXCESS ADVANCE PAYMENTS. IF ANY PAYMENT IS MADE TO
THE INDIVIDUAL BY THE COMMISSIONER UNDER THIS SECTION DURING ANY CALEN-
DAR YEAR, THEN 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) SAFE HARBOR AGAINST RECAPTURE OF EXCESS ADVANCE PAYMENTS. IF AN
INDIVIDUAL ESTABLISHES THAT THEY ARE REQUESTING AND RECEIVING 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
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) RECONCILIATION OF PAYMENTS ADVANCED AND CREDIT ALLOWED. 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.
§ 2. The administrative code of the city of New York is amended by
adding a new section 11-1763 to read as follows:
§ 11-1763 ADVANCE PAYMENT OF EARNED INCOME CREDIT. (A) GENERAL RULE.
EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER, THE COMMISSIONER SHALL
PROVIDE FOR THE PRE-PAYMENT OF THE EARNED INCOME CREDIT TO QUALIFYING
EMPLOYEES.
(B) EARNED INCOME ELIGIBILITY CERTIFICATE. FOR PURPOSES OF THIS CHAP-
TER, AN EARNED INCOME ELIGIBILITY CERTIFICATE IS A STATEMENT FURNISHED
BY AN EMPLOYEE TO THE COMMISSIONER WHICH:
A. 3532 3
(1) CERTIFIES THAT THE EMPLOYEE WILL BE ELIGIBLE TO RECEIVE AN EARNED
INCOME CREDIT OR AN ENHANCED EARNED INCOME CREDIT PROVIDED BY SUBDIVI-
SION (D) OF SECTION 11-1706 OF THIS CHAPTER FOR THE TAXABLE YEAR,
(2) CERTIFIES THAT THE EMPLOYEE HAS ONE OR MORE QUALIFYING CHILDREN
FOR SUCH TAXABLE YEAR,
(3) CERTIFIES THAT THE EMPLOYEE DOES NOT HAVE AN EARNED INCOME ELIGI-
BILITY CERTIFICATE IN EFFECT FOR THE CALENDAR YEAR WITH RESPECT TO THE
PAYMENT OF WAGES BY ANOTHER EMPLOYER, AND
(4) STATES WHETHER OR NOT THE EMPLOYEE'S SPOUSE HAS AN EARNED INCOME
ELIGIBILITY CERTIFICATE IN EFFECT.
FOR PURPOSES OF THIS SECTION, A CERTIFICATE SHALL BE TREATED AS BEING
IN EFFECT WITH RESPECT TO A SPOUSE IF SUCH A CERTIFICATE WILL BE IN
EFFECT ON THE FIRST STATUS DETERMINATION DATE FOLLOWING THE DATE ON
WHICH THE EMPLOYEE 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 COMMIS-
SIONER 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. SUCH PAYMENTS SHALL,
TO THE EXTENT PRACTICABLE BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA
ELECTRONIC BENEFIT TRANSFER (EBT) CARD.
(D) FORM AND CONTENTS OF CERTIFICATE. EARNED INCOME ELIGIBILITY
CERTIFICATES SHALL BE IN SUCH FORM AND CONTAIN SUCH OTHER INFORMATION AS
THE COMMISSIONER MAY BY REGULATIONS PRESCRIBE.
(E) NOTIFICATION. (1) THE COMMISSIONER SHALL NOTIFY ALL TAXPAYERS WHO
HAVE ONE OR MORE QUALIFYING CHILDREN AND WHO RECEIVE A REFUND OF THE
CREDIT UNDER SUBDIVISION (D) OF SECTION 11-1706 OF THIS CHAPTER IN WRIT-
ING 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 SEPARATE HANDOUT WITH INFOR-
MATION 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 OF 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) RECAPTURE OF EXCESS ADVANCE PAYMENTS. IF ANY PAYMENT IS MADE TO
THE INDIVIDUAL BY THE COMMISSIONER UNDER THIS SECTION DURING ANY CALEN-
DAR YEAR, THEN 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) SAFE HARBOR AGAINST RECAPTURE OF EXCESS ADVANCE PAYMENTS. IF AN
INDIVIDUAL ESTABLISHES THAT THEY ARE REQUESTING AND RECEIVING 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
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 SUBDIVISION SHALL NOT APPLY.
(3) RECONCILIATION OF PAYMENTS ADVANCED AND CREDIT ALLOWED. ANY
INCREASE IN TAX UNDER THIS SUBDIVISION SHALL NOT BE TREATED AS TAX
A. 3532 4
IMPOSED BY THIS CHAPTER FOR PURPOSES OF DETERMINING THE AMOUNT OF ANY
CREDIT (OTHER THAN THE CREDIT ALLOWED BY SUBDIVISION (D) OF SECTION
11-1706 OF THIS CHAPTER) ALLOWABLE UNDER THIS CHAPTER.
§ 3. This act shall take effect one year after it shall have become a
law and shall apply to taxable years beginning on or after such date.
Effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date are authorized to be made and completed on or before such
effective date.