NY State Senate Bill 2021-S9610

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 07, 2022	referred to rules

co-Sponsors

2021-S9610 (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S277

2021-S9610 (ACTIVE) - Summary

Provides for a working families tax credit of $1500 per child; directs quarterly prepayment of the credit; provides for a sliding reduction in the credit for incomes which exceed a certain threshold; provides such reduction should not be below $500.

2021-S9610 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9610

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the tax law, in relation to a New York state working
families tax credit


 
PURPOSE OR GENERAL IDEA OF BILL:

To create the New York State Working Families Tax Credit

 
SUMMARY OF PROVISIONS:

Section 1 redefines the State Earned Income Tax Credit to be for those
without qualifying children.

Section 2 clarifies that the current Empire State Child Tax Credit is
valid for years prior to January 1, 2023.

Section 3 creates the New York State Working Families Tax Credit.

Section 4 states the effective date.

 
JUSTIFICATION:

The expanded child tax credit provided for in the American Rescue Plan
Act successfully lifted 2.9 million children out of poverty, driving the
rate of child poverty to fall to a record low in 2021. Despite its
remarkable effectiveness, the program was not renewed. Thus, New York
must address the federal government's shortfall and provide support for
working families in our state.

The proposed NYS Working Families Tax Credit (WFTC) will streamline the
state Earned Income Tax Credit (EITC) and Empire State Child Tax Credit
(CTC) to provide working families with increased support while lessening
the additional cost to the state. The NYS WFTC fills many of the gaps of
the current state EITC and CTC, such as:

*Including children 0 - 4 years of age

*Including families regardless of citizenship status

*Eliminating the phase-in, allowing those with the lowest income to
receive the largest credit

The new system also increases the credit provided to all families by:

*Increasing the maximum credit to $1,500 per child *.sk 1 *Providing a
$500 credit per child regardless of income

*Eliminating the cap on the number of children eligible to receive a
credit

Additionally, the new NYS WFTC will be paid out quarterly, providing
families with four payments per year instead of one lump sum annually.
With the new system, families with one to three children will receive on

average $1,090 more than they currently do. Those without children who
qualify for the state EITC will continue to receive that benefit.

The benefits of the proposed WFTC are numerous. It is estimated that the
new credit will result in a 13.4% reduction in children under the age of
18 living in poverty, with a 19.6% reduction for those under 18 living
in deep poverty. It will also lead to increased educational attainment
and employment opportunities for these children, benefitting not only
those individuals but their communities and the state at large.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the amendments to
paragraph 1 of subsection (d) of section 606 of the tax law, made by
section one of this act, shall apply to taxable years beginning on and
after January 1, 2023.

2021-S9610 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9610
 
                             I N  S E N A T E
 
                             December 7, 2022
                                ___________
 
 Introduced by Sen. GOUNARDES -- 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 a New York state working
   families 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  WITH  NO QUALIFYING CHILD AS DEFINED IN 26
 U.S.C. § 152(C) 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.
   § 2. Paragraph 1 of subsection (c-1) of section 606 of the tax law, as
 amended by section 1 of part P of chapter 59 of the  laws  of  2018,  is
 amended to read as follows:
   (1)  [A] FOR TAXABLE YEARS BEGINNING PRIOR TO JANUARY FIRST, TWO THOU-
 SAND TWENTY-THREE, A resident taxpayer shall  be  allowed  a  credit  as
 provided  herein  equal  to the greater of one hundred dollars times the
 number of qualifying children of the taxpayer or the applicable percent-
 age of the child tax credit allowed the taxpayer under  section  twenty-
 four  of  the  internal  revenue code for the same taxable year for each
 qualifying child. Provided, however, in the case  of  a  taxpayer  whose
 federal  adjusted  gross  income exceeds the applicable threshold amount
 set forth by section 24(b)(2) of the Internal Revenue Code,  the  credit
 shall only be equal to the applicable percentage of the child tax credit
 allowed  the  taxpayer under section 24 of the Internal Revenue Code for
 each qualifying child. For the purposes of this subsection, a qualifying
 child shall be a child who meets the definition of qualified child under
 section 24(c) of the internal revenue code and is at least four years of
 age. The  applicable  percentage  shall  be  thirty-three  percent.  For
 purposes of this subsection, any reference to section 24 of the Internal
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16354-06-2
 S. 9610                             2
 
 Revenue  Code  shall  be a reference to such section as it existed imme-
 diately prior to the enactment of Public Law 115-97.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (c-2) to read as follows:
   (C-2) NEW YORK STATE WORKING FAMILIES  TAX  CREDIT.  (1)  FOR  TAXABLE
 YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE, A
 RESIDENT  TAXPAYER  WITH  A NEW YORK STATE ADJUSTED GROSS INCOME OF LESS
 THAN TWENTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN  INDIVIDUAL  WHO  IS
 NOT  MARRIED;  FIFTY  THOUSAND DOLLARS IN THE CASE OF A JOINT RETURN; OR
 TWENTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED INDIVIDUAL  FILING
 A  SEPARATE  RETURN SHALL BE ALLOWED A CREDIT EQUAL TO ONE THOUSAND FIVE
 HUNDRED DOLLARS TIMES THE NUMBER OF QUALIFYING CHILDREN AS DEFINED IN 26
 U.S.C. § 152 (C). THE AMOUNT OF THE CREDIT PER CHILD SHALL  BE  REDUCED,
 BUT NOT BELOW FIVE HUNDRED DOLLARS, BY TWENTY DOLLARS FOR EACH ONE THOU-
 SAND  DOLLARS  BY  WHICH  THE  TAXPAYER'S  NEW YORK STATE ADJUSTED GROSS
 INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL
 WHO IS NOT MARRIED; FIFTY THOUSAND  DOLLARS  IN  THE  CASE  OF  A  JOINT
 RETURN;  OR  TWENTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED INDI-
 VIDUAL FILING A SEPARATE RETURN.  FOR PURPOSES OF THIS  SUBSECTION,  ANY
 REFERENCE  TO  SECTION 24 OF THE INTERNAL REVENUE CODE SHALL BE A REFER-
 ENCE TO SUCH SECTION AS IT EXISTED IMMEDIATELY PRIOR TO THE ENACTMENT OF
 PUBLIC LAW 115-97.
   (2) FOR TAX YEARS BEGINNING IN TWO THOUSAND TWENTY-FOUR AND  THEREAFT-
 ER,  THE  THRESHOLDS  OF ADJUSTED GROSS INCOME AND THE CREDIT ALLOWED IN
 PARAGRAPH ONE OF THIS SUBSECTION  SHALL  BE  REVIEWED  ANNUALLY  BY  THE
 COMMISSIONER AND INDEXED FOR INFLATION.
   (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (4) IN THE CASE OF A HUSBAND AND WIFE WHO FILE A JOINT FEDERAL RETURN,
 BUT WHO ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES  SEPARATELY,  THE
 CREDIT  ALLOWED  PURSUANT  TO THIS SUBSECTION MAY BE APPLIED AGAINST THE
 TAX IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
   (5) THE COMMISSIONER SHALL PROVIDE FOR THE PREPAYMENT OF  THE  WORKING
 FAMILIES  CREDIT  UNDER  THIS  SUBSECTION TO QUALIFYING TAXPAYERS.  FOUR
 ADVANCED PAYMENTS SHALL BE MADE TO SUCH QUALIFYING TAXPAYERS.  AN  ESTI-
 MATED  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. 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  END  OF  THE  TAX  YEAR  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  ELEC-
 TRONIC  BENEFIT  TRANSFER  (EBT)  CARD.  THE  COMMISSIONER SHALL PROVIDE
 INFORMATION ON THE AVAILABILITY OF  ADVANCED  PAYMENTS  OF  THE  WORKING
 FAMILIES  CREDIT  TO  TAX  PREPARERS, ACCOUNTANTS AND ORGANIZATIONS THAT
 ASSIST  INDIVIDUALS  IN  TAX  PREPARATION.  SUCH  INFORMATION  SHALL  BE
 DISTRIBUTED TO QUALIFYING TAXPAYERS. IF A TAXPAYER ESTABLISHES THAT THEY
 ARE REQUESTING AND RECEIVING PAYMENTS UNDER THIS PARAGRAPH IN GOOD FAITH
 BY   ESTABLISHING   THAT  THEY  PROPERLY  CLAIMED  PAYMENTS  UNDER  THIS
 SUBSECTION IN THE PRIOR YEAR  AND  THAT  THEY  HAVE  NOT  EXPERIENCED  A
 SUBSTANTIAL  CHANGE  IN  CIRCUMSTANCES  SUCH THAT THEY HAVE A REASONABLE
 S. 9610                             3

 EXPECTATION OF ELIGIBILITY IN THE CURRENT YEAR, THEN THEY SHALL  NOT  BE
 HELD RESPONSIBLE FOR AN INCORRECT PREPAYMENT/REFUND AMOUNT.
   (6) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE REFUNDA-
 BLE  CREDIT  AND  ITS  PAYMENT AUTHORIZED UNDER THIS SUBSECTION SHALL BE
 TREATED IN THE SAME MANNER AS THE FEDERAL EARNED INCOME TAX  CREDIT  AND
 SHALL  NOT  BE  CONSIDERED  AS  ASSETS, INCOME, OR RESOURCES TO THE SAME
 EXTENT THE CREDIT AND ITS PAYMENT WOULD BE DISREGARDED  PURSUANT  TO  26
 U.S.C. § 6409 AND THE GENERAL WELFARE DOCTRINE FOR PURPOSES OF DETERMIN-
 ING  ELIGIBILITY  FOR BENEFITS OR ASSISTANCE, OR THE AMOUNT OR EXTENT OF
 THOSE BENEFITS OR ASSISTANCE, UNDER ANY STATE OR LOCAL PROGRAM,  INCLUD-
 ING  BENEFITS  ESTABLISHED  UNDER  SECTION  NINETY-FIVE  OF  THE  SOCIAL
 SERVICES LAW.
   § 4. This act shall take effect immediately; provided that the  amend-
 ments  to paragraph  1  of subsection (d) of section 606 of the tax law,
 made  by section one of this act, shall apply to taxable years beginning
 on and after January 1, 2023.

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Senate Bill S9610

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

2021-S9610 (ACTIVE) - Details

2021-S9610 (ACTIVE) - Summary

2021-S9610 (ACTIVE) - Sponsor Memo

2021-S9610 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S9610

Share this bill

Sponsored By

Andrew Gounardes

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

Jeremy A. Cooney

Timothy M. Kennedy

Gustavo Rivera

2021-S9610 (ACTIVE) - Details

2021-S9610 (ACTIVE) - Summary

2021-S9610 (ACTIVE) - Sponsor Memo

2021-S9610 (ACTIVE) - Bill Text download pdf

Comments