S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6259
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2019
                                ___________
 
 Introduced  by Sens. BENJAMIN, JACOBS -- read twice and ordered printed,
   and when printed to be committed to the Committee on Budget and Reven-
   ue
 
 AN ACT to amend the tax law, 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,  EVERY  EMPLOYER  MAKING
 PAYMENT  OF  WAGES  TO AN EMPLOYEE WITH RESPECT TO WHOM AN EARNED INCOME
 ELIGIBILITY CERTIFICATE IS IN EFFECT SHALL, AT THE TIME OF  PAYING  SUCH
 WAGES, MAKE AN ADDITIONAL PAYMENT TO SUCH EMPLOYEE EQUAL TO SUCH EMPLOY-
 EE'S EARNED INCOME ADVANCE AMOUNT.
   (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 EMPLOYER 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13069-01-9

 S. 6259                             2
 
 EFFECT  ON  THE  FIRST  STATUS  DETERMINATION DATE FOLLOWING THE DATE ON
 WHICH THE EMPLOYEE FURNISHES THE STATEMENT IN QUESTION.
   (C) EARNED INCOME ADVANCE AMOUNT. (1) IN GENERAL, FOR PURPOSES OF THIS
 SECTION,  THE TERM "EARNED INCOME ADVANCE AMOUNT" MEANS, WITH RESPECT TO
 ANY PAYROLL PERIOD, THE AMOUNT DETERMINED:
   (A) ON THE BASIS OF THE EMPLOYEE'S WAGES FROM THE  EMPLOYER  FOR  SUCH
 PERIOD, AND
   (B) IN ACCORDANCE WITH TABLES PRESCRIBED BY THE COMMISSIONER.
   IN  THE CASE OF AN EMPLOYEE WHO IS A MEMBER OF THE ARMED FORCES OF THE
 UNITED STATES, THE EARNED INCOME ADVANCE AMOUNT SHALL BE  DETERMINED  BY
 TAKING  INTO  ACCOUNT  SUCH  EMPLOYEE'S  EARNED INCOME AS DETERMINED FOR
 PURPOSES OF SUBSECTION (D) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE.
   (2) ADVANCE AMOUNT TABLES. THE TABLES REFERRED TO IN SUBPARAGRAPH  (B)
 OF PARAGRAPH ONE OF THIS SUBSECTION:
   (A)  SHALL  BE  SIMILAR IN FORM TO THE TABLES PRESCRIBED UNDER SECTION
 3402 OF THE INTERNAL REVENUE CODE AND, TO THE MAXIMUM  EXTENT  FEASIBLE,
 SHALL BE COORDINATED WITH SUCH TABLES, AND
   (B) IF THE EMPLOYEE IS NOT MARRIED, OR IF NO EARNED INCOME ELIGIBILITY
 CERTIFICATE  IS  IN  EFFECT  WITH RESPECT TO THE SPOUSE OF THE EMPLOYEE,
 SHALL TREAT THE CREDIT PROVIDED BY SUBSECTION (D) OR  (D-1)  OF  SECTION
 SIX HUNDRED SIX OF THIS ARTICLE AS IF IT WERE A CREDIT:
   (I)  OF NOT MORE THAN SIXTY PERCENT OF THE CREDIT PERCENTAGE IN EFFECT
 UNDER SECTION 32(B)(1) OF THE INTERNAL  REVENUE  CODE  FOR  AN  ELIGIBLE
 INDIVIDUAL  WITH  ONE  QUALIFYING  CHILD  AND  WITH EARNED INCOME NOT IN
 EXCESS OF THE EARNED INCOME AMOUNT IN EFFECT UNDER SECTION  32(B)(2)  OF
 THE INTERNAL REVENUE CODE FOR SUCH AN ELIGIBLE INDIVIDUAL, WHICH
   (II)  PHASES OUT AT SIXTY PERCENT OF THE PHASEOUT PERCENTAGE IN EFFECT
 UNDER SECTION 32(B)(1) OF THE INTERNAL REVENUE CODE FOR SUCH AN ELIGIBLE
 INDIVIDUAL BETWEEN THE PHASEOUT AMOUNT IN EFFECT UNDER SECTION  32(B)(2)
 OF  THE  INTERNAL  REVENUE  CODE FOR SUCH AN ELIGIBLE INDIVIDUAL AND THE
 AMOUNT OF EARNED INCOME AT WHICH THE CREDIT UNDER SECTION 32(A)  OF  THE
 INTERNAL REVENUE CODE PHASES OUT FOR SUCH AN ELIGIBLE INDIVIDUAL, OR
   (C)  IF  AN  EARNED  INCOME  ELIGIBILITY CERTIFICATE IS IN EFFECT WITH
 RESPECT TO THE SPOUSE OF THE EMPLOYEE, SHALL TREAT THE CREDIT AS  IF  IT
 WERE  A  CREDIT  DETERMINED  UNDER SUBPARAGRAPH (B) OF THIS PARAGRAPH BY
 SUBSTITUTING ONE-HALF OF THE AMOUNTS OF EARNED INCOME DESCRIBED IN  SUCH
 SUBPARAGRAPH FOR SUCH AMOUNTS.
   (D)  PAYMENTS TO BE TREATED AS PAYMENTS OF WITHHOLDING.  (1) IN GENER-
 AL, FOR PURPOSES OF THIS ARTICLE, PAYMENTS MADE  BY  AN  EMPLOYER  UNDER
 SUBSECTION  (A)  OF THIS SECTION TO HIS OR HER EMPLOYEES FOR ANY PAYROLL
 PERIOD:
   (A) SHALL NOT BE TREATED AS THE PAYMENT OF COMPENSATION, AND
   (B) SHALL BE TREATED AS MADE OUT OF AMOUNTS REQUIRED  TO  BE  DEDUCTED
 AND  WITHHELD FOR THE PAYROLL PERIOD UNDER PART FIVE OF THIS ARTICLE, AS
 IF THE EMPLOYER HAD PAID TO THE COMMISSIONER, ON THE DAY  ON  WHICH  THE
 WAGES ARE PAID TO THE EMPLOYEES, AN AMOUNT EQUAL TO SUCH PAYMENTS.
   (2) ADVANCE PAYMENTS EXCEED TAXES DUE. IN THE CASE OF ANY EMPLOYER, IF
 FOR  ANY  PAYROLL  PERIOD  THE AGGREGATE AMOUNT OF EARNED INCOME ADVANCE
 PAYMENTS EXCEEDS THE SUM OF THE AMOUNTS REFERRED TO IN SUBPARAGRAPH  (B)
 OF  PARAGRAPH ONE OF THIS SUBSECTION, EACH SUCH ADVANCE PAYMENT SHALL BE
 REDUCED BY AN AMOUNT WHICH BEARS THE SAME RATIO TO SUCH EXCESS  AS  SUCH
 ADVANCE  PAYMENT  BEARS  TO  THE  AGGREGATE  AMOUNT  OF ALL SUCH ADVANCE
 PAYMENTS.
   (3) EMPLOYER MAY MAKE FULL ADVANCE PAYMENTS.  THE  COMMISSIONER  SHALL
 PRESCRIBE  REGULATIONS UNDER WHICH AN EMPLOYER MAY ELECT (IN LIEU OF ANY
 APPLICATION OF PARAGRAPH TWO OF THIS SUBSECTION):

 S. 6259                             3
 
   (A) TO PAY IN FULL ALL EARNED INCOME ADVANCE AMOUNTS, AND
   (B) TO HAVE ADDITIONAL AMOUNTS PAID BY REASON OF THIS PARAGRAPH TREAT-
 ED AS THE ADVANCE PAYMENT OF TAXES IMPOSED BY THIS TITLE.
   (4)  FAILURE  TO  MAKE  ADVANCE PAYMENTS. FOR PURPOSES OF THIS ARTICLE
 (INCLUDING PENALTIES), FAILURE TO MAKE ANY ADVANCE  PAYMENT  UNDER  THIS
 SECTION AT THE TIME PROVIDED THEREFOR SHALL BE TREATED AS THE FAILURE AT
 SUCH  TIME  TO DEDUCT AND WITHHOLD UNDER THIS ARTICLE AN AMOUNT EQUAL TO
 THE AMOUNT OF SUCH ADVANCE PAYMENT.
   (E) FURNISHING AND TAKING EFFECT OF CERTIFICATES. FOR PURPOSES OF THIS
 SECTION:
   (1) WHEN CERTIFICATE TAKES EFFECT.
   (A) FIRST CERTIFICATE FURNISHED.  AN EARNED INCOME ELIGIBILITY CERTIF-
 ICATE FURNISHED THE EMPLOYER IN CASES IN WHICH NO PREVIOUS SUCH  CERTIF-
 ICATE  HAD  BEEN IN EFFECT FOR THE CALENDAR YEAR SHALL TAKE EFFECT AS OF
 THE BEGINNING OF THE FIRST PAYROLL PERIOD ENDING, OR THE  FIRST  PAYMENT
 OF  WAGES  MADE WITHOUT REGARD TO A PAYROLL PERIOD, ON OR AFTER THE DATE
 ON WHICH SUCH CERTIFICATE IS SO FURNISHED (OR IF LATER, THE FIRST DAY OF
 THE CALENDAR YEAR FOR WHICH FURNISHED).
   (B)  LATER  CERTIFICATE.  AN  EARNED  INCOME  ELIGIBILITY  CERTIFICATE
 FURNISHED THE EMPLOYER IN CASES IN WHICH A PREVIOUS SUCH CERTIFICATE HAD
 BEEN  IN  EFFECT FOR THE CALENDAR YEAR SHALL TAKE EFFECT WITH RESPECT TO
 THE FIRST PAYMENT OF WAGES MADE ON OR AFTER THE  FIRST  STATUS  DETERMI-
 NATION  DATE  WHICH  OCCURS AT LEAST THIRTY DAYS AFTER THE DATE ON WHICH
 SUCH CERTIFICATE IS SO FURNISHED, EXCEPT THAT AT  THE  ELECTION  OF  THE
 EMPLOYER  SUCH  CERTIFICATE  MAY  BE  MADE EFFECTIVE WITH RESPECT TO ANY
 PAYMENT OF WAGES MADE ON OR AFTER THE DATE ON WHICH SUCH CERTIFICATE  IS
 SO  FURNISHED.  FOR  PURPOSES OF THIS SECTION, THE TERM "STATUS DETERMI-
 NATION DATE" MEANS JANUARY FIRST, MAY FIRST,  JULY  FIRST,  AND  OCTOBER
 FIRST OF EACH YEAR.
   (2)  PERIOD  DURING  WHICH  CERTIFICATE  REMAINS  IN EFFECT. AN EARNED
 INCOME ELIGIBILITY CERTIFICATE WHICH TAKES EFFECT UNDER THIS SECTION FOR
 ANY CALENDAR YEAR SHALL CONTINUE IN EFFECT WITH RESPECT TO THE  EMPLOYEE
 DURING SUCH CALENDAR YEAR UNTIL REVOKED BY THE EMPLOYEE OR UNTIL ANOTHER
 SUCH CERTIFICATE TAKES EFFECT UNDER THIS SECTION.
   (3) CHANGE OF STATUS.
   (A)  REQUIREMENT  TO  REVOKE OR FURNISH NEW CERTIFICATE.  IF, AFTER AN
 EMPLOYEE HAS FURNISHED AN EARNED INCOME  ELIGIBILITY  CERTIFICATE  UNDER
 THIS  SECTION,  THERE  HAS  BEEN A CHANGE OF CIRCUMSTANCES WHICH HAS THE
 EFFECT OF:
   (I)  MAKING  THE  EMPLOYEE  INELIGIBLE  FOR  THE  CREDIT  PROVIDED  BY
 SUBSECTION  (D)  OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE FOR
 THE TAXABLE YEAR, OR
   (II) CAUSING AN EARNED INCOME ELIGIBILITY CERTIFICATE TO BE IN  EFFECT
 WITH  RESPECT  TO THE SPOUSE OF THE EMPLOYEE, THE EMPLOYEE SHALL, WITHIN
 TEN DAYS AFTER SUCH CHANGE IN CIRCUMSTANCES, FURNISH THE EMPLOYER WITH A
 REVOCATION OF SUCH CERTIFICATE OR WITH A NEW CERTIFICATE  (AS  THE  CASE
 MAY BE). SUCH A REVOCATION (OR SUCH A NEW CERTIFICATE) SHALL TAKE EFFECT
 UNDER  THE  RULES  PROVIDED BY SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS
 SUBSECTION FOR A LATER CERTIFICATE AND SHALL BE MADE IN SUCH FORM AS THE
 COMMISSIONER SHALL BY REGULATIONS PRESCRIBE.
   (B) CERTIFICATE NO  LONGER  IN  EFFECT.  IF,  AFTER  AN  EMPLOYEE  HAS
 FURNISHED  AN  EARNED  INCOME ELIGIBILITY CERTIFICATE UNDER THIS SECTION
 WHICH CERTIFIES THAT SUCH A CERTIFICATE IS IN EFFECT WITH RESPECT TO THE
 SPOUSE OF THE EMPLOYEE, SUCH A CERTIFICATE IS NO LONGER IN  EFFECT  WITH
 RESPECT  TO SUCH SPOUSE, THEN THE EMPLOYEE MAY FURNISH THE EMPLOYER WITH
 A NEW EARNED INCOME ELIGIBILITY CERTIFICATE.

 S. 6259                             4
 
   (4) 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.
   (5) TAXABLE YEAR DEFINED. THE TERM "TAXABLE YEAR" MEANS THE LAST TAXA-
 BLE  YEAR  OF  THE  EMPLOYEE BEGINNING IN THE CALENDAR YEAR IN WHICH THE
 WAGES ARE PAID.
   (F) NOTIFICATION. THE COMMISSIONER SHALL TAKE SUCH  STEPS  AS  MAY  BE
 APPROPRIATE  TO  ENSURE  THAT  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 ARE AWARE OF THE AVAIL-
 ABILITY OF EARNED INCOME ADVANCE AMOUNTS UNDER THIS SECTION.
   (G) COORDINATION WITH ADVANCE PAYMENTS OF EARNED INCOME CREDIT.
   (1)  RECAPTURE  OF EXCESS ADVANCE PAYMENTS.  IF ANY PAYMENT IS MADE TO
 THE INDIVIDUAL BY AN EMPLOYER UNDER THIS  SECTION  DURING  ANY  CALENDAR
 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. This act shall take effect on the thirtieth day  after  it  shall
 have  become a law and shall apply to taxable years beginning January 1,
 2020.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6259--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2019
                                ___________
 
 Introduced by Sens. BENJAMIN, LIU -- read twice and ordered printed, and
   when printed to be committed to the Committee on Budget and Revenue --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- recommitted to the Committee on Budg-
   et and Revenue in accordance with Senate Rule 6, sec. 8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13069-06-0

 S. 6259--B                          2
 
   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 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.

 S. 6259--B                          3
 
   (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:
   (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)  OR  (D-1)  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

 S. 6259--B                          4

 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
 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6259--C
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 30, 2019
                                ___________
 
 Introduced by Sens. BENJAMIN, LIU -- read twice and ordered printed, and
   when printed to be committed to the Committee on Budget and Revenue --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- recommitted to the Committee on Budg-
   et and Revenue in accordance with Senate Rule 6, sec. 8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  --  committee  discharged,  bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13069-09-0
              

 S. 6259--C                          2
 
   (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 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

 S. 6259--C                          3
 
 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:
   (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

 S. 6259--C                          4
 
 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
 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.