Assembly Bill A5291

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5291
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 12, 2021
                                ___________
 
 Introduced by M. of A. BARCLAY, HAWLEY, PALMESANO, RA, MONTESANO, BLANK-
   ENBUSH,  NORRIS,  SMITH,  WALSH,  B. MILLER, MANKTELOW, ASHBY, JENSEN,
   GALLAHAN, DeSTEFANO, SIMPSON, LAWLER -- Multi-Sponsored by -- M. of A.
   BROWN -- read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to calculation  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. 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 (VIII) FORTY-FIVE PERCENT FOR TAXABLE YEARS BEGINNING IN
 TWO  THOUSAND TWENTY-TWO 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02538-01-1

 A. 5291                             2
 
 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 divi-
 sion of the budget, the speaker of the assembly and the temporary presi-
 dent of the senate.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2022.