S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5323
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 8, 2019
                                ___________
 
 Introduced  by M. of A. CRESPO -- Multi-Sponsored by -- M. of A. ARROYO,
   DAVILA, GOODELL, PICHARDO, RAMOS, RIVERA, RODRIGUEZ -- read  once  and
   referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to installment payments for the
   earned  income credit; and to authorize and direct the commissioner of
   taxation and finance to conduct a  feasibility  and  impact  study  on
   monthly payments 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. The commissioner of taxation and finance is hereby  author-
 ized  and  directed to study and report on the feasibility and impact of
 using an installment  payment  plan  for  earned  income  credits.  Such
 commissioner shall include in the study and subsequent report a detailed
 analysis  of  a  plan  where  an  earned  income  tax credit pursuant to
 subsection (d) of section 606 of the  tax  law  or  an  enhanced  earned
 income tax credit pursuant to subsection (d-1) of section 606 of the tax
 law  is distributed 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 be
 two hundred dollars a month for the number of months equal to the  total
 amount  thereof  divided  by two hundred and rounded down to the nearest
 whole number, and the remaining balance of such payment or refund  shall
 be made in the first month thereafter, 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 there-
 of divided by twelve. The commissioner of  taxation  and  finance  shall
 prepare a report on his or her findings to be submitted to the temporary
 president  of  the senate, the speaker of the assembly and the chairs of
 the assembly ways and means committee and the senate  finance  committee
 within 180 days after the effective date of this act.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08059-01-9

 A. 5323                             2
 
   §  2. Section 686 of the tax law is amended by adding a new subsection
 (j) to read as follows:
   (J)  EARNED  INCOME TAX CREDIT.-- AN EARNED INCOME TAX CREDIT PURSUANT
 TO SUBSECTION (D) OF SECTION SIX HUNDRED  SIX  OF  THIS  ARTICLE  OR  AN
 ENHANCED  EARNED  INCOME  TAX  CREDIT  PURSUANT  TO  SUBSECTION (D-1) OF
 SECTION SIX HUNDRED SIX OF THIS ARTICLE SHALL 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 BE TWO HUNDRED DOLLARS A MONTH  FOR
 THE  NUMBER  OF  MONTHS EQUAL TO THE TOTAL AMOUNT THEREOF DIVIDED BY TWO
 HUNDRED AND ROUNDED DOWN TO THE NEAREST WHOLE NUMBER, AND THE  REMAINING
 BALANCE OF SUCH PAYMENT OR REFUND SHALL BE MADE IN THE FIRST MONTH THER-
 EAFTER, 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 immediately; provided,  however,  that
 section  two  of this act shall take effect one year after it shall have
 become a law. Effective immediately, the commissioner  of  taxation  and
 finance  is  authorized to make any addition, amendment and/or repeal of
 any rule or regulation necessary for the implementation of this  act  on
 its effective date on or before such date.