NY State Senate Bill 2025-S3648

Current Bill Status - In Senate Committee Budget And Revenue 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 29, 2025	referred to budget and revenue

2025-S3648 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §686, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S6331

2025-S3648 (ACTIVE) - Summary

Provides for the installment payment for the earned income credit.

2025-S3648 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S3648

SPONSOR: MURRAY
 
TITLE OF BILL:

An act to amend the tax law, in relation to installment payment for the
earned income credit

 
PURPOSE:

The purpose of this legislation is to require that the earned income tax
credit be paid in monthly installments to avoid binge spending and to
facilitate the development of a regular monthly budget leading to fewer
financial emergencies for the working poor.

 
SUMMARY OF PROVISIONS:

Section One of the bill amends section 686 of the Tax Law by adding a
new subsection (j) to require that earned income tax credits that exceed
$200 be paid in monthly installments of at least $200.

Section 2 of the bill would make the bill effective 120 days after it

becomes law and would empower the commissioner of taxation and finance
to promulgate regulations necessary for its implementation.

 
JUSTIFICATION:

Under current law, working poor are entitled to an earned income tax
credit (EITC), which is a direct payment from the State of New York that
supplements their prior income. The EITC is in addition to any tax
refund, and acts in the same manner as a negative income tax that pays
the working poor more in a "refund" than they paid in taxes. The EITC is
paid in a lump sum in the same check as any regular tax refund.

Because the EITC is paid in a lump sum, it can encourage binge spending
on nonessential amenities.

This bill would require the EITC to be paid in monthly installments,
thus reducing its use for nonessential luxury items, encouraging respon-
sible monthly budgeting, and making more funds available on a monthly
basis for basic expenses.

More responsible budgeting will assist the working poor in having the
financial resources available on a monthly basis to meet reoccurring
expenses, will reduce the incidence of financial emergencies, and will
assist in the successful transition to full independence. The regular
tax refund would still be paid in a lump sum.

 
LEGISLATIVE HISTORY:

2024: - Referred to Budget and Revenue

 
FISCAL IMPLICATIONS:

The bill would result in lower government expenditures for emergency
financial assistance (such as emergency HEAP or other emergency finan-
cial assistance) by increasing the effective monthly income of the work-
ing poor.

 
EFFECTIVE DATE:
The bill would become effective 120 days after enactment.

2025-S3648 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3648
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2025
                                ___________
 
 Introduced  by  Sen.  MURRAY -- 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 installment payment for  the
   earned income credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 686 of the tax law  is  amended  by  adding  a  new
 subsection (j) to read as follows:
   (J) EARNED INCOME TAX CREDIT.  AN EARNED INCOME TAX CREDIT PURSUANT TO
 SUBSECTION (D) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE OR AN ENHANCED
 EARNED  INCOME  TAX  CREDIT  PURSUANT TO SUBSECTION (D-1) OF SECTION SIX
 HUNDRED SIX OF THIS ARTICLE SHALL BE PAID TO THE  TAXPAYER  AS  FOLLOWS:
 (I)  FOR  AMOUNTS EQUAL TO OR LESS THAN TWO HUNDRED DOLLARS, THE PAYMENT
 OR REFUND SHALL BE MADE IN A LUMP SUM, (II) FOR AMOUNTS IN EXCESS OF TWO
 HUNDRED DOLLARS AND LESS THAN TWO THOUSAND  FOUR  HUNDRED  DOLLARS,  THE
 PAYMENT OR REFUND SHALL BE TWO HUNDRED DOLLARS A MONTH FOR THE NUMBER OF
 MONTHS  EQUAL  TO  THE  TOTAL  AMOUNT THEREOF DIVIDED BY TWO HUNDRED AND
 ROUNDED DOWN TO THE NEAREST WHOLE NUMBER, AND THE REMAINING  BALANCE  OF
 SUCH  PAYMENT OR REFUND SHALL BE MADE IN THE FIRST MONTH THEREAFTER, AND
 (III) FOR AMOUNTS EQUAL TO OR GREATER THAN  TWO  THOUSAND  FOUR  HUNDRED
 DOLLARS,  THE  PAYMENT OR REFUND SHALL BE PAID IN EQUAL MONTHLY PAYMENTS
 EQUAL TO THE TOTAL AMOUNT THEREOF DIVIDED BY TWELVE.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the  commissioner  of
 taxation  and  finance  is  authorized  to  make any addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on its effective date on or before such date.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07550-01-5

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Senate Bill S3648

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Current Bill Status - In Senate Committee Budget And Revenue Committee

Actions

2025-S3648 (ACTIVE) - Details

2025-S3648 (ACTIVE) - Summary

2025-S3648 (ACTIVE) - Sponsor Memo

2025-S3648 (ACTIVE) - Bill Text download pdf

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Sponsored By

Dean Murray

Current Bill Status - In Senate Committee Budget And Revenue Committee

Actions

2025-S3648 (ACTIVE) - Details

2025-S3648 (ACTIVE) - Summary

2025-S3648 (ACTIVE) - Sponsor Memo

2025-S3648 (ACTIVE) - Bill Text download pdf

Comments