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S4823Senate2015-2016 SessionSame asA4340

Increases the amount of the earned income tax credit

Sponsor Marc PanepintoSD-60+2 co-sponsorsAffects Legal
Status
In Senate Committee
Investigations And Government Operations
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Investigations And Government Operations

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Who cares

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Sponsors

Primary sponsor
Marc Panepinto

Senator · Senate District 60

History

  1. Print number 4823a
  2. Amend and recommit to investigations and government operations
  3. Referred to investigations and government operations
  4. Referred to investigations and government operations

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A4340Assembly

Increases the amount of the earned income tax credit

In Assembly Committee · Ways And Means · Sponsor Robin Schimminger

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

Title of bill

An act to amend the tax law, in relation to increasing the earned income tax credit

Purpose

To increase the amount of the Earned Income Tax Credit (EITC), a refundable credit for low-income working individuals and families, from 30% of the federal credit to 32.5% for the taxable year beginning in 2016 and 35% for taxable years beginning in 2017.

Summary of provisions

§ 1 - Amends paragraph 1 of subsection (d) of section 606 of the Tax Law to increase the EITC from 30, of the federal credit to 32.5e for the taxable year beginning in 2016 and 35e for taxable years beginning in 2017.

§ 2 - Effective date.

Justification

Enacted in 1975, the federal Earned Income Credit was created to offset Social Security taxes, helping to reduce the tax burden on and putting money back in the pockets of lower income families. Since enactment of the state EITC in 1994, which is based on a percentage of the federal ETC, the EITC percentage has been raised several times and is now valued at 30% of the federal credit.

The EITC is targeted to working families and is specifically designed to provide the greatest benefits to households with children. As income rises, EITC benefits phase down until eligibility ends at $49,078 for married filers with three children.

Time and again, we see how quickly day-to-day expenses and unexpected bills can add up, throwing a family's monthly budget off track. The EITC can provide cash-strapped working families with much-needed support to help cover living expenses.

This legislation would raise the EITC from 30e of the federal credit to 32.5% for the taxable year beginning in 2016 and 35% for taxable years beginning in 2017, thus helping low-income working individuals and families.

Fiscal implementation

Implementation of the full 5% increase would be approximately $160 million ($80 million in 2016 and $80 million in 2017), however, fiscal impact is determined by the number of tax payers who take advantage of the credit.

Legislative history

2016: Referred to Investigations and Government Operations 2015: Referred to Investigations and Government Operations

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.