What's happening
This bill increases New York's earned income tax credit to 32.5% in 2018 and 35% in 2019 and thereafter.
Why it matters
Boosts financial support for low- and moderate-income working families. by increasing the state's earned income tax credit (EITC) percentage, putting more money back in the hands of those who work but earn less.
May help reduce child poverty and economic hardship. by increasing after-tax income for qualifying households, which research shows leads to better outcomes in health, education, and long-term economic mobility.
Makes New York's EITC one of the most generous in the country,. potentially attracting and retaining lower-wage workers, while signaling a strong state commitment to supporting working families.
Provides a buffer against changes in federal policy,. since the bill includes a provision that could reduce the credit if federal funding for related programs is cut—highlighting the interplay between state and federal anti-poverty efforts.
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Who cares
Headline styles
Increase Earned Income Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5564
2017-2018 Regular Sessions
IN SENATE
April 12, 2017
Introduced by Sen. KAMINSKY -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
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 eighteen, (viii) thirty-two and onehalf percent for taxable years beginning in two thousand eighteen, and (ix) thirty-five percent for taxable years beginning in two thousand nineteen 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05721-02-7
S. 5564 2
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.
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 2018 and 35% for taxable years beginning in 2019.
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 32.5% for the taxable year beginning in 2018 and 35% for taxable years beginning in 2019.
§ 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 30% of the federal credit to 32.5% for the taxable year beginning in 2018 and 35% for taxable years beginning in 2019, thus helping low-income working individuals and families.
Fiscal implementation
Implementation of the full 5% increase would be approximately $160 million. However, the number of taxpayers who take advantage of the credit determines the fiscal impact.
Legislative history
2016: Referred to Investigations and Government Operations 2015: Referred to Investigations and Government Operations 2016: Referred to Investigations and Governmental 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.