STATE OF NEW YORK
        ________________________________________________________________________

                                          9258

                   IN ASSEMBLY

                                    February 22, 2024
                                       ___________

        Introduced  by M. of A. RA, JENSEN, GANDOLFO, MAHER, SLATER -- read once
          and referred to the Committee on Ways and Means

        AN ACT to amend the tax law, in relation to increasing the earned income
          tax credit

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph  1  of subsection (d) of section 606 of the tax
     2  law, as amended by section 1 of part Q of chapter  63  of  the  laws  of
     3  2000, is amended to read as follows:
     4    (1)  General.  A taxpayer shall be allowed a credit as provided herein
     5  equal to (i) the applicable  percentage  of  the  earned  income  credit
     6  allowed  under  section  thirty-two of the internal revenue code for the
     7  same taxable year, (ii) reduced by the credit permitted under subsection
     8  (b) of this section.
     9    The applicable percentage shall be (i) seven and one-half percent  for
    10  taxable  years  beginning  in  nineteen  hundred  ninety-four,  (ii) ten
    11  percent for taxable years beginning  in  nineteen  hundred  ninety-five,
    12  (iii)  twenty percent for taxable years beginning after nineteen hundred
    13  ninety-five and  before  two  thousand,  (iv)  twenty-two  and  one-half
    14  percent  for  taxable  years  beginning in two thousand, (v) twenty-five
    15  percent for taxable years beginning in two thousand  one,  (vi)  twenty-
    16  seven  and  one-half percent for taxable years beginning in two thousand
    17  two, [and] (vii) thirty percent for taxable years beginning in two thou-
    18  sand three, and (viii) forty-five percent for taxable years beginning in
    19  two thousand twenty-four and thereafter. Provided, however, that if  the
    20  reversion  event,  as  defined in this paragraph, occurs, the applicable
    21  percentage shall be twenty percent for taxable years ending on or  after
    22  the  date  on  which  the  reversion event occurred. The reversion event
    23  shall be deemed to have occurred on the date on  which  federal  action,
    24  including  but  not  limited to, administrative, statutory or regulatory
    25  changes, materially reduces or eliminates New York state's allocation of
    26  the federal temporary assistance for  needy  families  block  grant,  or
    27  materially  reduces  the ability of the state to spend federal temporary
    28  assistance for needy families block grant funds for  the  earned  income

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13719-01-3

        A. 9258                             2

     1  credit  or  to  apply  state  general fund spending on the earned income
     2  credit toward the temporary assistance for needy  families  block  grant
     3  maintenance of effort requirement, and the commissioner of the office of
     4  temporary and disability assistance shall certify the date of such event
     5  to  the  commissioner of taxation and finance, the director of the divi-
     6  sion of the budget, the speaker of the assembly and the temporary presi-
     7  dent of the senate.
     8    § 2. Subsection (d) of section 606 of the tax law is amended by adding
     9  a new paragraph 9 to read as follows:
    10    (9) For taxable years beginning on or after January first,  two  thou-
    11  sand  twenty-four,  an earned income tax credit pursuant to this section
    12  or an enhanced earned income tax credit pursuant to subsection (d-1)  of
    13  this  section may, at the election of the taxpayer made via a form to be
    14  prescribed by the commissioner, be paid to the taxpayer as follows:  (i)
    15  for  amounts  equal  to or less than two hundred dollars, the payment or
    16  refund shall be made in a lump sum, (ii) for amounts in  excess  of  two
    17  hundred  dollars  and  less  than two thousand four hundred dollars, the
    18  payment or refund shall equal three quarterly checks each equal to twen-
    19  ty five percent of the taxpayer's anticipated  credit  amount,  and  the
    20  remaining  balance  of  such  payment or refund shall be included in any
    21  final refund owed to  the  taxpayer  following  the  completion  of  the
    22  taxpayer's  tax  return,  and (iii) for amounts equal to or greater than
    23  two thousand four hundred dollars, the payment or refund shall  be  paid
    24  in  equal  monthly payments equal to the total amount thereof divided by
    25  twelve.
    26    § 3. This act shall take effect on the one hundred twentieth day after
    27  it shall have become a law. Effective immediately, the addition,  amend-
    28  ment and/or repeal of any rule or regulation necessary for the implemen-
    29  tation of this act on its effective date are authorized to be made on or
    30  before such effective date.