S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5573--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 8, 2023
                                ___________
 
 Introduced  by Sens. GOUNARDES, MYRIE -- read twice and ordered printed,
   and when printed to be committed to the Committee on Budget and Reven-
   ue -- committee discharged, bill amended, ordered reprinted as amended
   and recommitted to said committee
 
 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 and a new paragraph 9 is added 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-FIVE 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-FIVE
 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-FIVE AND THEREAFTER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09953-06-3
 S. 5573--A                          2
              

 
   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,  (VIII)  THIRTY-FIVE PERCENT FOR TAXABLE YEARS BEGINNING IN
 TWO THOUSAND TWENTY-FIVE, AND  (IX)  FORTY  PERCENT  FOR  TAXABLE  YEARS
 BEGINNING  IN TWO THOUSAND TWENTY-SIX and thereafter.  FOR TAXABLE YEARS
 BEGINNING IN TWO THOUSAND TWENTY-FIVE AND THEREAFTER, IN THE CASE OF  AN
 ELIGIBLE  INDIVIDUAL  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 INDI-
 VIDUAL 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
 QUALIFYING CHILD AS SUCH  AMOUNTS  ARE  REFERENCED  IN  SUCH  PARAGRAPH.
 PROVIDED  FURTHER, FOR THE PURPOSE OF THIS SUBSECTION, AN ELIGIBLE INDI-
 VIDUAL 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.
 FURTHERMORE,  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.
   (9) INDIVIDUALS OVER AGE SIXTY-FIVE. NOTWITHSTANDING THE PROVISIONS OF
 SECTION 32(C)(1)(A)(II)(III) OF THE INTERNAL REVENUE CODE, AN INDIVIDUAL
 WHO IS OTHERWISE ELIGIBLE TO RECEIVE THE EARNED INCOME CREDIT UNDER THIS
 SUBSECTION  SHALL  NOT  BE DEEMED INELIGIBLE DUE SOLELY TO THE FACT THAT
 SUCH INDIVIDUAL HAS ATTAINED THE AGE OF SIXTY-FIVE.
   § 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.
 S. 5573--A                          3
 
   (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-
 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 ON 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 THEY ARE REQUESTING AND RECEIV-
 ING 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 HAS 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.
 S. 5573--A                          4
 
   (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, 2025.