What's happening
This bill increases New York's earned income tax credit to 45% of the federal credit starting in 2018.
Why it matters
Significantly boosts financial support for low- and moderate-income working families. by raising New York's earned income tax credit (EITC) to 45% of the federal credit. This could mean hundreds of extra dollars per year for eligible families, directly increasing their take-home pay and potentially reducing poverty rates.
Strengthens incentives to work for lower-income individuals. , since the EITC is only available to those earning income through work. Higher credits can make employment more financially attractive compared to relying solely on public assistance.
Potentially increases economic activity in local communities. , as EITC recipients are likely to spend their larger refunds on necessities like food, rent, and transportation, thereby supporting small businesses and local economies.
Includes a safeguard (“reversion event”) to lower the state credit back to 20%. if federal funding for related social programs (like Temporary Assistance for Needy Families) is significantly reduced. This aims to protect the state budget in case of major federal cutbacks, but also introduces some uncertainty for recipients if federal policies change.
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Who cares
Headline styles
Increase Earned Income Credit
Plain English, a few words. Used as the page title.
Sponsors
14 Co-sponsors
1 Multi-sponsor
History
- Held for consideration in ways and means
- 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
5714
2017-2018 Regular Sessions
IN ASSEMBLY
February 14, 2017
Introduced by M. of A. KOLB, BUTLER, OAKS, HAWLEY, PALMESANO, RA, RAIA, MONTESANO, GRAF, BLANKENBUSH, McLAUGHLIN, GIGLIO, DiPIETRO, MURRAY, STEC -- Multi-Sponsored by -- M. of A. CROUCH, LOPEZ -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to calculation of the earned income 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 (viii) forty-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 the reversion event occurred. The reversion event shall be deemed to have occurred on the date on which federal action,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03294-01-7
A. 5714 2
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 and shall apply to taxable years beginning on and after January 1, 2018.
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.