S T A T E O F N E W Y O R K
________________________________________________________________________
8670
I N S E N A T E
July 2, 2020
___________
Introduced by Sen. KAPLAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
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:
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. PROVIDED, HOWEVER, FOR TAXABLE YEARS BEGINNING IN
TWO THOUSAND TWENTY AND THEREAFTER, FOR THE PURPOSE OF DETERMINING THE
AMOUNT OF TAX CREDIT UNDER THIS PARAGRAPH, IN CALCULATING THE EARNED
INCOME TAX CREDIT ALLOWED UNDER SECTION THIRTY-TWO OF THE INTERNAL
REVENUE CODE, THE PHASEOUT AMOUNT AS REFERENCED IN SECTION 32(B)(2)(A)
OF THE INTERNAL REVENUE CODE SHALL BE READ AS TWENTY FOUR THOUSAND NINE
HUNDRED SIXTY DOLLARS INSTEAD OF ELEVEN THOUSAND SIX HUNDRED TEN DOLLARS
AND SUCH PHASEOUT AMOUNT SHALL BE SUBJECT TO ADJUSTMENTS MADE IN SECTION
THIRTY-TWO OF THE INTERNAL REVENUE CODE (THE CALENDAR YEAR REFERENCED IN
THE COST OF LIVING ADJUSTMENT IN SECTION 32(J)(1)(B) OF THE INTERNAL
REVENUE CODE SHALL BE APPLIED AS CALENDAR YEAR TWO THOUSAND TWENTY WITH
RESPECT TO THE PHASEOUT AMOUNTS), INCLUDING AN ADDITIONAL PHASEOUT
AMOUNT FOR A JOINT FILER AND INFLATION ADJUSTMENT SPECIFIED IN SUCH
SECTION OF THE INTERNAL REVENUE CODE FOR TAXABLE YEARS BEGINNING IN TWO
THOUSAND TWENTY AND THEREAFTER.
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16838-01-0
S. 8670 2
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, (VIII) THIRTY-FIVE PERCENT FOR TAXABLE YEARS BEGINNING IN
TWO THOUSAND TWENTY, AND (IX) FORTY PERCENT FOR TAXABLE YEARS BEGINNING
IN TWO THOUSAND TWENTY-ONE and thereafter. FOR TAXABLE YEARS BEGINNING
IN TWO THOUSAND TWENTY AND THEREAFTER, IN THE CASE OF AN ELIGIBLE INDI-
VIDUAL WITH NO QUALIFYING CHILDREN, THE CREDIT PERCENTAGE SHALL BE
FIFTEEN AND THREE-TENTHS TO DETERMINE THE AMOUNT OF THE EARNED INCOME
TAX CREDIT REFERENCED IN SECTION 32(B)(1) OF THE INTERNAL REVENUE CODE
AND THE EARNED INCOME AMOUNT AND THE PHASEOUT AMOUNT OF SUCH INDIVIDUAL
SHALL BE DETERMINED AS IF SUCH EARNED INCOME AMOUNT AND PHASEOUT AMOUNT
AS REFERENCED IN SECTION 32(B)(2)(A) OF THE INTERNAL REVENUE CODE ARE
EQUAL TO THE AMOUNT ALLOWED FOR AN ELIGIBLE INDIVIDUAL WITH ONE QUALIFY-
ING CHILD AS SUCH AMOUNTS ARE REFERENCED IN SUCH PARAGRAPH. PROVIDED
FURTHER, FOR THE PURPOSE OF THIS SUBSECTION, AN ELIGIBLE INDIVIDUAL
SHALL BE AN INDIVIDUAL WHO HAS ATTAINED NINETEEN YEARS OF AGE AS OPPOSED
TO TWENTY-FIVE YEARS OF AGE, IRRESPECTIVE OF THE ELIGIBILITY REFERENCED
IN SECTION 32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE. FURTHER-
MORE, AN INDIVIDUAL OTHERWISE ELIGIBLE BUT FOR THE REQUIREMENT UNDER
SECTION 32(M) OF THE INTERNAL REVENUE CODE SHALL BE ELIGIBLE FOR THIS
CREDIT. 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 limited
to, administrative, statutory or regulatory changes, materially reduces
or eliminates New York state's allocation of the federal temporary
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.
§ 2. 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 PREPAYMENT 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 PURSUANT TO
SUBSECTION (D) OR (D-1) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE FOR
THE TAXABLE YEAR;
(2) CERTIFIES THAT THE EMPLOYEE DOES NOT HAVE AN EARNED INCOME ELIGI-
BILITY CERTIFICATE IN EFFECT FOR THE TAXABLE YEAR WITH RESPECT TO THE
PAYMENT OF WAGES BY ANOTHER EMPLOYER; AND
(3) STATES WHETHER THE EMPLOYEE'S SPOUSE HAS AN EARNED INCOME ELIGI-
BILITY CERTIFICATE IN EFFECT. FOR PURPOSES OF THIS SECTION, A CERTIF-
S. 8670 3
ICATE SHALL BE TREATED AS BEING IN EFFECT WITH RESPECT TO A SPOUSE IF
SUCH CERTIFICATE WILL BE IN EFFECT ON THE FIRST STATUS DETERMINATION
DATE FOLLOWING THE DATE ON WHICH THE OTHER ELIGIBLE SPOUSE 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 COMMISSIONER
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 ELIGIBLE. SUCH PAYMENTS SHALL, TO THE
EXTENT PRACTICABLE, BE MADE AVAILABLE VIA DIRECT DEPOSIT AND VIA ELEC-
TRONIC BENEFIT TRANSFER (EBT) CARD.
(D) FORM AND CONTENTS OF CERTIFICATE. EARNED INCOME ELIGIBILITY
CERTIFICATES SHALL BE IN SUCH FORM AND CONTAIN SUCH INFORMATION AS THE
COMMISSIONER MAY DETERMINE AND PRESCRIBE.
(E) NOTIFICATION. (1) THE COMMISSIONER SHALL NOTIFY ALL TAXPAYERS WHO
HAVE RECEIVED A REFUND OF THE CREDIT PURSUANT TO SUBSECTION (D) OR (D-1)
OF SECTION SIX HUNDRED SIX OF THIS ARTICLE BASED ON THE MOST RECENT TAX
RETURN OR RECORD 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 SEPA-
RATE 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) IF
ANY PAYMENT IS MADE TO THE INDIVIDUAL BY THE DEPARTMENT UNDER THIS
SECTION DURING ANY CALENDAR YEAR, 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) IF AN INDIVIDUAL ESTABLISHES THAT HE OR SHE IS REQUESTING AND
RECEIVING PAYMENTS UNDER THIS SECTION IN GOOD-FAITH BY ESTABLISHING THAT
HE OR SHE PROPERLY CLAIMED PAYMENTS UNDER THIS SECTION IN THE PRIOR YEAR
AND THAT HE OR SHE HAS NOT EXPERIENCED A SUBSTANTIAL CHANGE IN CIRCUM-
STANCES SUCH THAT HE OR SHE HAS A REASONABLE EXPECTATION OF ELIGIBILITY
IN THE CURRENT YEAR, THEN PARAGRAPH ONE OF THIS SUBSECTION SHALL NOT
APPLY.
(3) 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.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2020.
