What's happening
This bill changes the payment of the New York earned income tax credit to be made in monthly installments instead of a lump sum.
Why it matters
Provides more regular, predictable income. By shifting from a lump sum to monthly payments, recipients may better manage household budgets and cover ongoing expenses, potentially reducing reliance on high-interest loans or credit cards between payments.
Could reduce financial stress and promote stability. Smoothing out income through monthly installments may help low-income families avoid the “feast or famine” cycle that often follows a large annual refund, supporting better financial planning and security.
May require recipients to adjust expectations and planning. Households accustomed to a single large refund (often used for major purchases or debt repayment) would need to adapt to smaller, steady payments, which could impact how they handle larger expenses.
Creates administrative changes for the state. Implementing monthly payments will require new systems, oversight, and potentially increased administrative costs for the Department of Taxation and Finance, which could affect the speed and efficiency of credit distribution.
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Who cares
Headline styles
Earned Income Credit Installments
Plain English, a few words. Used as the page title.
Sponsors
8 Co-sponsors
2 Multi-sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4300
2017-2018 Regular Sessions
IN ASSEMBLY
February 2, 2017
Introduced by M. of A. GOODELL -- read once and referred to the Committee on Ways and Means
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 Assembly, 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.
LBD09129-01-7
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.