S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5442
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 10, 2023
                                ___________
 
 Introduced  by  M.  of  A.  BARCLAY, HAWLEY, PALMESANO, RA, BLANKENBUSH,
   NORRIS, SMITH, WALSH, MILLER, MANKTELOW, JENSEN, GALLAHAN,  DeSTEFANO,
   SIMPSON,  BRABENEC  -- Multi-Sponsored by -- M. of A. K. 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-FOUR 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.
                                                            LBD02617-01-3
              

 A. 5442                             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, 2024.