Bill Text: NY S09066 | 2023-2024 | General Assembly | Introduced
Bill Title: Provides for advance payment of the earned income credit by employers, the commissioner of the department of taxation and finance and the commissioner of New York City's department of finance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-16 - REFERRED TO BUDGET AND REVENUE [S09066 Detail]
Download: New_York-2023-S09066-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9066 IN SENATE April 16, 2024 ___________ Introduced by Sen. COMRIE -- 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 and the administrative code of the city of New York, in relation to advance payment of the earned income credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 679 to read 2 as follows: 3 § 679. Advance payment of earned income credit. (a) General rule. 4 Except as otherwise provided in this chapter, the commissioner shall 5 provide for the pre-payment of the earned income credit to qualifying 6 employees. 7 (b) Earned income eligibility certificate. For purposes of this arti- 8 cle, an earned income eligibility certificate is a statement furnished 9 by an employee to the commissioner which: 10 (1) certifies that the employee will be eligible to receive an earned 11 income credit or an enhanced earned income credit provided by subsection 12 (d) or (d-1) of section six hundred six of this article for the taxable 13 year, 14 (2) certifies that the employee has one or more qualifying children 15 for such taxable year, 16 (3) certifies that the employee does not have an earned income eligi- 17 bility certificate in effect for the calendar year with respect to the 18 payment of wages by another employer, and 19 (4) states whether or not the employee's spouse has an earned income 20 eligibility certificate in effect. 21 For purposes of this section, a certificate shall be treated as being 22 in effect with respect to a spouse if such a certificate will be in 23 effect on the first status determination date following the date on 24 which the employee furnishes the statement in question. 25 (c) Earned income advance amount. Four advanced payments shall be 26 made to such qualifying employees. An estimated annual tax credit shall 27 be determined by the commissioner in advance of the first payment, and 28 shall be subject to adjustment due to changes in employment or family EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01147-01-3S. 9066 2 1 status over the course of the year. Prior to disbursement, the commis- 2 sioner shall ensure that the qualifying employee's status has not 3 changed. The first three advanced payments shall be made during the 4 taxable year and shall be twenty percent of the anticipated credit. The 5 fourth advanced payment shall be made after the tax year is over, and 6 shall be adjusted to match the actual credit due. Such payments shall, 7 to the extent practicable be made available via direct deposit and via 8 electronic benefit transfer (EBT) card. 9 (d) Form and contents of certificate. Earned income eligibility 10 certificates shall be in such form and contain such other information as 11 the commissioner may by regulations prescribe. 12 (e) Notification. (1) The commissioner shall notify all taxpayers who 13 have one or more qualifying children and who receive a refund of the 14 credit under subsection (d) or (d-1) of section six hundred six of this 15 article in writing of the availability of earned income advance amounts 16 under this section. Such written or electronic notification shall 17 include a clearly labeled section or withholding forms and a separate 18 handout with information about the advanced payment of the earned income 19 credit in the six most common languages spoken by individuals in this 20 state. 21 (2) The commissioner shall provide information of the availability of 22 earned income advance amounts under this section to tax preparers, 23 accountants and organizations that assist individuals in tax prepara- 24 tion. Such information shall be distributed to qualifying individuals. 25 (f) Coordination with advance payments of earned income credit. 26 (1) Recapture of excess advance payments. If any payment is made to 27 the individual by the commissioner under this section during any calen- 28 dar year, then the tax imposed by this chapter for the individual's last 29 taxable year beginning in such calendar year shall be increased by the 30 aggregate amount of such payments. 31 (2) Safe harbor against recapture of excess advance payments. If an 32 individual establishes that they are requesting and receiving payments 33 under this section in good-faith by establishing that they properly 34 claimed payments under this section in the prior year and that they have 35 not experienced a substantial change in circumstances such that they 36 have a reasonable expectation of eligibility in the current year, then 37 paragraph one of this subsection shall not apply. 38 (3) Reconciliation of payments advanced and credit allowed. Any 39 increase in tax under this subsection shall not be treated as tax 40 imposed by this chapter for purposes of determining the amount of any 41 credit (other than the credit allowed by subsection (d) or (d-1) of 42 section six hundred six of this article) allowable under this article. 43 § 2. The administrative code of the city of New York is amended by 44 adding a new section 11-1763 to read as follows: 45 § 11-1763 Advance payment of earned income credit. (a) General rule. 46 Except as otherwise provided in this chapter, the commissioner shall 47 provide for the pre-payment of the earned income credit to qualifying 48 employees. 49 (b) Earned income eligibility certificate. For purposes of this chap- 50 ter, an earned income eligibility certificate is a statement furnished 51 by an employee to the commissioner which: 52 (1) certifies that the employee will be eligible to receive an earned 53 income credit or an enhanced earned income credit provided by subdivi- 54 sion (d) of section 11-1706 of this chapter for the taxable year, 55 (2) certifies that the employee has one or more qualifying children 56 for such taxable year,S. 9066 3 1 (3) certifies that the employee does not have an earned income eligi- 2 bility certificate in effect for the calendar year with respect to the 3 payment of wages by another employer, and 4 (4) states whether or not the employee's spouse has an earned income 5 eligibility certificate in effect. 6 For purposes of this section, a certificate shall be treated as being 7 in effect with respect to a spouse if such a certificate will be in 8 effect on the first status determination date following the date on 9 which the employee furnishes the statement in question. 10 (c) Earned income advance amount. Four advanced payments shall be 11 made to such qualifying employees. An estimated annual tax credit shall 12 be determined by the commissioner in advance of the first payment, and 13 shall be subject to adjustment due to changes in employment or family 14 status over the course of the year. Prior to disbursement, the commis- 15 sioner shall ensure that the qualifying employee's status has not 16 changed. The first three advanced payments shall be made during the 17 taxable year and shall be twenty percent of the anticipated credit. The 18 fourth advanced payment shall be made after the tax year is over, and 19 shall be adjusted to match the actual credit due. Such payments shall, 20 to the extent practicable be made available via direct deposit and via 21 electronic benefit transfer (EBT) card. 22 (d) Form and contents of certificate. Earned income eligibility 23 certificates shall be in such form and contain such other information as 24 the commissioner may by regulations prescribe. 25 (e) Notification. (1) The commissioner shall notify all taxpayers who 26 have one or more qualifying children and who receive a refund of the 27 credit under subdivision (d) of section 11-1706 of this chapter in writ- 28 ing of the availability of earned income advance amounts under this 29 section. Such written or electronic notification shall include a clearly 30 labeled section or withholding forms and a separate handout with infor- 31 mation about the advanced payment of the earned income credit in the six 32 most common languages spoken by individuals in this state. 33 (2) The commissioner shall provide information of the availability of 34 earned income advance amounts under this section to tax preparers, 35 accountants and organizations that assist individuals in tax prepara- 36 tion. Such information shall be distributed to qualifying individuals. 37 (f) Coordination with advance payments of earned income credit. 38 (1) Recapture of excess advance payments. If any payment is made to 39 the individual by the commissioner under this section during any calen- 40 dar year, then the tax imposed by this chapter for the individual's last 41 taxable year beginning in such calendar year shall be increased by the 42 aggregate amount of such payments. 43 (2) Safe harbor against recapture of excess advance payments. If an 44 individual establishes that they are requesting and receiving payments 45 under this section in good-faith by establishing that they properly 46 claimed payments under this section in the prior year and that they have 47 not experienced a substantial change in circumstances such that they 48 have a reasonable expectation of eligibility in the current year, then 49 paragraph one of this subdivision shall not apply. 50 (3) Reconciliation of payments advanced and credit allowed. Any 51 increase in tax under this subdivision shall not be treated as tax 52 imposed by this chapter for purposes of determining the amount of any 53 credit (other than the credit allowed by subdivision (d) of section 54 11-1706 of this chapter) allowable under this chapter. 55 § 3. This act shall take effect one year after it shall have become a 56 law and shall apply to taxable years beginning on or after such date.S. 9066 4 1 Effective immediately, the addition, amendment and/or repeal of any rule 2 or regulation necessary for the implementation of this act on its effec- 3 tive date are authorized to be made and completed on or before such 4 effective date.
