S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9542

                          I N  A S S E M B L Y

                             March 12, 2012
                               ___________

Introduced  by  M.  of A. SCHIMMINGER, BENEDETTO, CASTRO, CRESPO, GANTT,
  GIBSON, JEFFRIES, LAVINE,  MILLMAN,  P. RIVERA,  ROBERTS,  SWEENEY  --
  Multi-Sponsored  by -- M. of A.  BRAUNSTEIN, GLICK, GOTTFRIED, HIKIND,
  V. LOPEZ, THIELE, WEISENBERG -- read once and referred to the  Commit-
  tee on Ways and Means

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  BEFORE  TWO  THOUSAND  TWELVE,  (VIII)  THIRTY-TWO AND
ONE-HALF PERCENT FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWELVE, AND
(IX) THIRTY-FIVE PERCENT FOR TAXABLE YEARS  BEGINNING  IN  TWO  THOUSAND
THIRTEEN 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14656-01-2

A. 9542                             2

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.
  S 2. This act shall take effect immediately.