S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3532
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced  by  M.  of A. ZINERMAN, BURDICK -- read once and referred to
   the Committee on Ways and Means
 
 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.
   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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01147-01-3
 A. 3532                             2
              

 
   (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.
   (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:
 A. 3532                             3
 
   (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
 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
 A. 3532                             4
 
 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.