S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    277
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced by Sens. GOUNARDES, KENNEDY, RIVERA -- read twice and ordered
   printed,  and  when printed to be committed to the Committee on Budget
   and Revenue
 
 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02008-01-3
 S. 277                              2
 
 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
 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
 S. 277                              3
 
 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
 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  277--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sens.  GOUNARDES,  COONEY,  ASHBY,  BROUK,  CHU, CLEARE,
   FERNANDEZ, HINCHEY, HOYLMAN-SIGAL, KAVANAGH,  KENNEDY,  MANNION,  MAY,
   MURRAY,  MYRIE,  RAMOS,  RIVERA,  SALAZAR, SEPULVEDA, SERRANO, WEBB --
   read twice and ordered printed, and when printed to  be  committed  to
   the  Committee  on  Budget  and  Revenue -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee  --  recommitted to the Committee on Budget and Revenue in accord-
   ance with Senate Rule 6, sec. 8 -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 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. Subsection (d) of section 606 of the tax law is amended  by
 adding a new paragraph 9 to read as follows:
   (9)  COMMENCING IN THE TAXABLE YEAR NEXT SUCCEEDING THE EFFECTIVE DATE
 OF SUBSECTION (C-2) OF THIS SECTION, THE PORTION OF  THE  EARNED  INCOME
 CREDIT  ATTRIBUTABLE TO QUALIFYING CHILDREN, AS DEFINED IN PARAGRAPH ONE
 OF SUBSECTION (C-2) OF THIS SECTION, SHALL BE REDUCED OVER THE COURSE OF
 FOUR YEARS AS FOLLOWS:
   (A) IN THE  FIRST  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE  DATE  OF
 SUBSECTION  (C-2)  OF  THIS  SECTION,  THE  APPLICABLE PERCENTAGE OF THE
 EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF  THE  INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO TWENTY-ONE;
   (B)  IN  THE  SECOND  TAXABLE  YEAR  SUCCEEDING  THE EFFECTIVE DATE OF
 SUBSECTION (C-2) OF THIS  SECTION,  THE  APPLICABLE  PERCENTAGE  OF  THE
 EARNED  INCOME  CREDIT  ALLOWED UNDER SECTION THIRTY-TWO OF THE INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO FIFTEEN;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02008-06-4
 S. 277--B                           2
 
   (C) IN THE  THIRD  TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE  DATE  OF
 SUBSECTION  (C-2)  OF  THIS  SECTION,  THE  APPLICABLE PERCENTAGE OF THE
 EARNED INCOME CREDIT ALLOWED UNDER SECTION THIRTY-TWO  OF  THE  INTERNAL
 REVENUE CODE FOR THE SAME TAXABLE YEAR, AS DESCRIBED IN PARAGRAPH ONE OF
 THIS SUBSECTION, SHALL BE REDUCED TO TEN;
   (D)  IN  THE  FOURTH  TAXABLE  YEAR  SUCCEEDING  THE EFFECTIVE DATE OF
 SUBSECTION (C-2) OF THIS SECTION AND EACH TAXABLE YEAR  THEREAFTER,  THE
 APPLICABLE  PERCENTAGE OF THE EARNED INCOME CREDIT ALLOWED UNDER SECTION
 THIRTY-TWO OF THE INTERNAL REVENUE CODE FOR THE SAME  TAXABLE  YEAR,  AS
 DESCRIBED IN PARAGRAPH ONE OF THIS SUBSECTION, SHALL BE REDUCED TO ZERO.
   THE  REDUCTION  DESCRIBED  IN  THIS  PARAGRAPH SHALL APPLY ONLY TO THE
 PORTION OF A TAXPAYER'S EARNED INCOME CREDIT  THAT  IS  ATTRIBUTABLE  TO
 QUALIFYING  CHILDREN  AS DEFINED IN PARAGRAPH ONE OF SUBSECTION (C-2) OF
 THIS SECTION. A TAXPAYER SHALL CONTINUE TO BE ALLOWED THE EARNED  INCOME
 CREDIT  FOR THE PORTIONS OF SUCH CREDIT ATTRIBUTABLE TO ANOTHER QUALIFY-
 ING CHILD, AS DEFINED IN 26 USC  §152(C),  OR  QUALIFYING  RELATIVE,  AS
 DEFINED  IN 26 USC §152(D), WHO DO NOT MEET THE DEFINITION OF QUALIFYING
 CHILD IN PARAGRAPH ONE OF SUBSECTION (C-2) OF THIS SECTION.
   § 2. Paragraph 1 of subsection (c-1) of section 606 of the tax law, as
 amended by section 1 of part HH of chapter 56 of the laws  of  2023,  is
 amended to read as follows:
   (1)  [A] FOR TAXABLE YEARS PRIOR TO THE FIRST OF JANUARY NEXT SUCCEED-
 ING THE EFFECTIVE DATE OF SUBSECTION (C-2) OF THIS SECTION,  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 percentage 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 appli-
 cable 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. The applicable percentage shall be thirty-three
 percent. For purposes of this subsection, any reference to section 24 of
 the Internal Revenue Code shall be a reference to  such  section  as  it
 existed immediately 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)  DEFINITIONS.
 (A)  "ADJUSTED FOR INFLATION" SHALL MEAN THAT THE COMMISSIONER INCREASES
 THE DOLLAR AMOUNT OF A CREDIT OR ADJUSTED GROSS INCOME,  AS  APPLICABLE,
 BY  AN AMOUNT EQUAL TO SUCH DOLLAR AMOUNT MULTIPLIED BY THE COST-OF-LIV-
 ING ADJUSTMENT DETERMINED UNDER 26 USC § 1 (F)(3), FOR THE CALENDAR YEAR
 IN WHICH THE TAXABLE YEAR BEING REFERENCED BEGINS.
   (B) "ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND TWENTY-THREE" SHALL
 MEAN THE COMMISSIONER  INCREASES  THE  DOLLAR  AMOUNT  OF  A  CREDIT  OR
 ADJUSTED  GROSS  INCOME, AS APPLICABLE, BY AN AMOUNT EQUAL TO THE SUM OF
 ALL COST-OF-LIVING ADJUSTMENTS CALCULATED AND PUBLISHED BY THE  INTERNAL
 REVENUE  SERVICE  PURSUANT  TO  26  USC §1(F)(3) SINCE CALENDAR YEAR TWO
 THOUSAND TWENTY-THREE.
   (C) "QUALIFYING CHILD" OR "QUALIFYING CHILDREN" SHALL MEAN AS  DEFINED
 IN  26 USC §24(C)(1) EXCEPT THAT SUCH TERM SHALL ALSO INCLUDE QUALIFYING
 CHILDREN WHO HAVE NOT ATTAINED THE AGE OF EIGHTEEN.
 S. 277--B                           3
 
   (2) (A) FOR TAXABLE YEARS BEGINNING ON AND AFTER THE FIRST OF  JANUARY
 NEXT  SUCCEEDING  THE  EFFECTIVE  DATE  OF  THIS  SUBSECTION, A RESIDENT
 TAXPAYER WITH A NEW YORK STATE ADJUSTED GROSS INCOME OF LESS THAN  TWEN-
 TY-FIVE  THOUSAND  DOLLARS  IN  THE  CASE  OF  AN  INDIVIDUAL WHO IS NOT
 MARRIED;  FIFTY THOUSAND DOLLARS IN THE CASE OF A JOINT RETURN; OR TWEN-
 TY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED  INDIVIDUAL  FILING  A
 SEPARATE RETURN SHALL BE ALLOWED A CREDIT EQUAL TO:
   (I)  IN  THE  FIRST TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, EIGHT HUNDRED DOLLARS PER QUALIFYING CHILD;
   (II) IN THE SECOND TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION, ONE THOUSAND ONE HUNDRED DOLLARS PER QUALIFYING CHILD;
   (III)  IN THE THIRD TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, ONE THOUSAND THREE HUNDRED AND FIFTY DOLLARS PER  QUALIFYING
 CHILD;
   (IV)  IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION AND EACH TAXABLE YEAR THEREAFTER, ONE  THOUSAND  SIX  HUNDRED
 DOLLARS  PER QUALIFYING CHILD, PROVIDED, HOWEVER, THAT THE DOLLAR AMOUNT
 HEREIN PRESCRIBED SHALL BE ADJUSTED FOR ALL INFLATION SINCE TWO THOUSAND
 TWENTY-THREE IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF
 THIS SUBSECTION AND EACH TAXABLE YEAR THEREAFTER.
   (B) THE AMOUNT OF THE CREDIT PER CHILD  SHALL  BE  REDUCED  BY  TWENTY
 DOLLARS  FOR  EACH ONE THOUSAND DOLLARS BY WHICH THE TAXPAYER'S NEW YORK
 STATE ADJUSTED GROSS INCOME EXCEEDS:
   (I) IN THE FIRST TAXABLE YEAR SUCCEEDING THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION, SIXTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS  NOT  MARRIED,  ONE  HUNDRED THIRTY THOUSAND DOLLARS IN THE CASE OF A
 JOINT RETURN, OR SIXTY-FIVE THOUSAND DOLLARS IN THE CASE  OF  A  MARRIED
 INDIVIDUAL FILING A SEPARATE RETURN;
   (II)  IN THE SECOND TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS NOT MARRIED, ONE HUNDRED TEN THOUSAND DOLLARS IN THE CASE OF A  JOINT
 RETURN, OR FIFTY-FIVE THOUSAND DOLLARS IN THE CASE OF A MARRIED INDIVID-
 UAL FILING A SEPARATE RETURN;
   (III)  IN THE THIRD TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, FORTY-FIVE THOUSAND DOLLARS IN THE CASE OF AN INDIVIDUAL WHO
 IS NOT MARRIED, NINETY THOUSAND DOLLARS IN THE CASE OF A  JOINT  RETURN,
 OR  FORTY-FIVE  THOUSAND  DOLLARS  IN  THE  CASE OF A MARRIED INDIVIDUAL
 FILING A SEPARATE RETURN; AND
   (IV) IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SECTION  AND  EACH TAXABLE YEAR THEREAFTER, 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, PROVIDED,  HOWEV-
 ER,  THAT  THE  DOLLAR  AMOUNT  HEREIN  PRESCRIBED SHALL BE ADJUSTED FOR
 INFLATION IN THE FOURTH TAXABLE YEAR SUCCEEDING THE  EFFECTIVE  DATE  OF
 THIS SUBSECTION AND EACH TAXABLE YEAR THEREAFTER.
   (C)  PROVIDED,  HOWEVER,  THAT THE AMOUNT OF THE CREDIT SHALL NEVER BE
 REDUCED BELOW THE FOLLOWING AMOUNTS:
   (I) IN THE FIRST TAXABLE YEAR NEXT SUCCEEDING THE  EFFECTIVE  DATE  OF
 THIS SUBSECTION, ONE HUNDRED FIFTY DOLLARS PER QUALIFYING CHILD;
   (II)  IN THE SECOND TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, TWO HUNDRED FIFTY DOLLARS PER QUALIFYING CHILD;
   (III) IN THE THIRD TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF  THIS
 SUBSECTION, FOUR HUNDRED DOLLARS PER QUALIFYING CHILD;
   (IV)  IN THE FOURTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE DATE OF THIS
 SUBSECTION, FIVE HUNDRED DOLLARS PER QUALIFYING CHILD; AND
 S. 277--B                           4
 
   (V) IN THE FIFTH TAXABLE YEAR SUCCEEDING THE EFFECTIVE  DATE  OF  THIS
 SUBSECTION  AND  EACH  TAXABLE YEAR THEREAFTER, FIVE HUNDRED DOLLARS PER
 QUALIFYING CHILD, PROVIDED,  HOWEVER,  THAT  THE  DOLLAR  AMOUNT  HEREIN
 PRESCRIBED  SHALL  BE  ADJUSTED  FOR INFLATION IN THE FIFTH TAXABLE YEAR
 SUCCEEDING  THE  EFFECTIVE DATE OF THIS SUBSECTION AND EACH TAXABLE YEAR
 THEREAFTER.
   (D) SUCH RESIDENT TAXPAYER MUST PROVIDE THE SOCIAL SECURITY NUMBER  OR
 INDIVIDUAL  TAXPAYER  IDENTIFICATION NUMBER FOR EACH QUALIFYING CHILD IN
 ORDER TO RECEIVE THE CREDIT DESCRIBED IN THIS SUBSECTION.
   (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 SPOUSES 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 ON EITHER OR DIVIDED BETWEEN THEM AS THEY MAY ELECT.
   (5) COMMENCING IN THE FOURTH TAXABLE  YEAR  SUCCEEDING  THE  EFFECTIVE
 DATE  OF THIS SUBSECTION, THE COMMISSIONER SHALL PROVIDE FOR THE PREPAY-
 MENT OF THE WORKING FAMILIES CREDIT UNDER THIS SUBSECTION TO  QUALIFYING
 TAXPAYERS.    FOUR  ADVANCED  PAYMENTS  SHALL BE MADE TO SUCH QUALIFYING
 TAXPAYERS.  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. 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
 ELECTRONIC  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
 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. Section 616 of the tax law, as amended by chapter 28 of the  laws
 of  1987,  subsection (b) as amended by chapter 760 of the laws of 1992,
 is amended to read as follows:
   § 616. New York exemptions of a resident individual. (a) General.  For
 taxable  years beginning after nineteen hundred eighty-seven, a resident
 S. 277--B                           5
 
 individual shall be allowed a New York exemption of one thousand dollars
 for each exemption for which [he is] THEY ARE entitled  to  a  deduction
 for  the  taxable  year  under  section  one hundred fifty-one(c) of the
 Internal  Revenue  Code;  and  for  taxable  years beginning in nineteen
 hundred eighty-seven, a resident individual other than a taxpayer  whose
 federal  exemption  amount is zero shall be allowed a New York exemption
 of nine hundred dollars for each exemption for which [he  is]  THEY  ARE
 entitled  to  a  deduction  for  the taxable year for federal income tax
 purposes.
   (b) [Husband and wife] SPOUSES.  If the New York income  taxes  of  [a
 husband  and  wife] SPOUSES are required to be separately determined but
 their federal income tax is determined on a joint return, each  of  them
 shall be separately entitled to the New York exemptions under subsection
 (a)  of  this section to which each would be separately entitled for the
 taxable year if their federal income taxes had been determined on  sepa-
 rate returns.
   (C)  COMMENCING IN THE TAXABLE YEAR NEXT SUCCEEDING THE EFFECTIVE DATE
 OF SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, A  RESI-
 DENT  INDIVIDUAL  SHALL  NOT  BE ALLOWED THE EXEMPTION DESCRIBED IN THIS
 SECTION FOR  ANY  QUALIFYING  CHILD  AS  DEFINED  IN  PARAGRAPH  ONE  OF
 SUBSECTION  (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE. A RESIDENT
 INDIVIDUAL SHALL CONTINUE TO BE ALLOWED THE EXEMPTION DESCRIBED IN  THIS
 SECTION,  HOWEVER, FOR OTHER QUALIFYING DEPENDENTS, AS DEFINED IN 26 USC
 § 152(A), WHO DO NOT MEET THE DEFINITION OF QUALIFYING  CHILD  IN  PARA-
 GRAPH  ONE  OF SUBSECTION (C-2) OF SECTION SIX HUNDRED SIX OF THIS ARTI-
 CLE.
   § 5. This act shall take effect immediately.