What's happening
This bill increases the New York State earned income tax credit percentage, raising it to 35% starting in 2018.
Why it matters
Expanding the state earned income tax credit (EITC) increases support for low- and moderate-income working families. , making work more financially rewarding and potentially reducing poverty rates across New York.
The phased increase to 35% of the federal EITC (from 30%) means eligible households will see noticeably larger tax refunds or reduced tax liabilities. , providing them with more disposable income that can be used for essential needs like housing, childcare, or transportation.
This change could have positive ripple effects on local economies, since EITC recipients tend to spend their refunds quickly and locally. , helping stimulate demand in small businesses and services.
The bill contains a safeguard (“reversion event”) that would lower the EITC if federal funding for related social services is significantly cut. , highlighting the program’s reliance on federal-state fiscal cooperation and the possibility of benefit reductions if federal policies change.
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Who cares
Headline styles
Boost Earned Income Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
7 Co-sponsors
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2018
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. SCHIMMINGER, BENEDETTO, CRESPO, GANTT, LAVINE, CAHILL, WEPRIN, AUBRY -- Multi-Sponsored by -- M. of A. BRAUNSTEIN, COLTON, GLICK, GOTTFRIED, HIKIND, PERRY, THIELE -- 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 Assembly, 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 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.
The applicable percentage shall be (i) seven and one-half percent for taxable years beginning in nineteen hundred ninety-four, (ii) ten percent for taxable years beginning in nineteen hundred ninety-five, (iii) twenty percent for taxable years beginning after nineteen hundred ninety-five and before two thousand, (iv) twenty-two and one-half percent for taxable years beginning in two thousand, (v) twenty-five percent for taxable years beginning in two thousand one, (vi) twentyseven and one-half percent for taxable years beginning in two thousand two, [and] (vii) thirty percent for taxable years beginning in two thousand three and before two thousand seventeen, (viii) thirty-two and one-half percent for taxable years beginning in two thousand seventeen, and (ix) thirty-five percent for taxable years beginning in two thousand eighteen and thereafter. Provided, however, that if the reversion event, as defined in this paragraph, occurs, the applicable percentage shall be twenty percent for taxable years ending on or after the date on which
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05721-01-7
A. 2018 2
the reversion event occurred. The reversion event shall be deemed to have occurred on the date on which federal action, including but not limited to, administrative, statutory or regulatory changes, materially reduces or eliminates New York state's allocation of the federal temporary assistance for needy families block grant, or materially reduces the ability of the state to spend federal temporary assistance for needy families block grant funds for the earned income credit or to apply state general fund spending on the earned income credit toward the temporary assistance for needy families block grant maintenance of effort requirement, and the commissioner of the office of temporary and disability assistance shall certify the date of such event to the commissioner of taxation and finance, the director of the division of the budget, the speaker of the assembly and the temporary president of the senate.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.