What's happening
This bill allows eligible employees in New York State and New York City to receive advance payments of the earned income tax credit throughout the year.
Why it matters
Improves Financial Stability for Low-Income Workers. By allowing earned income tax credits to be paid out in advance, eligible employees can access critical funds throughout the year—rather than waiting for a lump sum at tax time—helping families better manage recurring expenses and financial emergencies.
Helps Prevent Predatory Borrowing. Early access to EITC payments could reduce the need for low-income families to rely on payday loans or high-interest credit cards to cover shortfalls, potentially decreasing debt cycles and financial stress.
Requires Active Oversight and Communication. The bill mandates robust notification and outreach—taxpayers, tax preparers, and relevant organizations must be informed about advance payment options, and communications must be made accessible in the six most common languages, aiming to increase awareness and uptake among eligible populations.
Includes Safeguards and Reconciliation. To prevent overpayments and fraud, the bill creates a process for status verification before each payment and requires year-end reconciliation to match the advance payments with the actual credit due. A “safe harbor” provision protects individuals acting in good faith from penalties if their eligibility changes unexpectedly.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Advance Earned Income Credit
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.554
- Reported and committed to finance
- Print number 6259c
- Amend and recommit to budget and revenue
- Print number 6259b
- Amend and recommit to budget and revenue
- Referred to budget and revenue
- Returned to senate
- Died in assembly
Show 8 earlier actions
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 42–20
- Ordered to third reading cal.1440
- Committee discharged and committed to rules
- Print number 6259a
- Amend (t) and recommit to budget and revenue
- Referred to budget and revenue
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.
Early Tax Credit Payments
In Assembly Committee · Ways And Means · Sponsor Tremaine Wright
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6259--C
2019-2020 Regular Sessions
IN SENATE
May 30, 2019
Introduced by Sens. BENJAMIN, LIU -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Budget and Revenue in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law and the administrative code of the city of New York, in relation to advance payment of the earned income credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 679 to read as follows:
§ 679. Advance payment of earned income credit. (a) General rule. Except as otherwise provided in this chapter, the commissioner shall provide for the pre-payment of the earned income credit to qualifying employees.
(b) Earned income eligibility certificate. For purposes of this article, an earned income eligibility certificate is a statement furnished by an employee to the commissioner which:
(1) certifies that the employee will be eligible to receive an earned income credit or an enhanced earned income credit provided by subsection (d) or (d-1) of section six hundred six of this article for the taxable year,
(2) certifies that the employee has one or more qualifying children for such taxable year,
(3) certifies that the employee does not have an earned income eligibility certificate in effect for the calendar year with respect to the payment of wages by another employer, and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13069-09-0
S. 6259--C 2
(4) states whether or not the employee's spouse has an earned income eligibility certificate in effect.
For purposes of this section, a certificate shall be treated as being in effect with respect to a spouse if such a certificate will be in effect on the first status determination date following the date on which the employee furnishes the statement in question.
(c) Earned income advance amount. Four advanced payments shall be made to such qualifying employees. An estimated annual tax credit shall be determined by the commissioner in advance of the first payment, and shall be subject to adjustment due to changes in employment or family status over the course of the year. Prior to disbursement, the commissioner shall ensure that the qualifying employee's status has not changed. The first three advanced payments shall be made during the taxable year and shall be twenty percent of the anticipated credit. The fourth advanced payment shall be made after the tax year is over, and shall be adjusted to match the actual credit due. Such payments shall, to the extent practicable be made available via direct deposit and via electronic benefit transfer (EBT) card.
(d) Form and contents of certificate. Earned income eligibility certificates shall be in such form and contain such other information as the commissioner may by regulations prescribe.
(e) Notification. (1) The commissioner shall notify all taxpayers who have one or more qualifying children and who receive a refund of the credit under subsection (d) or (d-1) of section six hundred six of this article in writing of the availability of earned income advance amounts under this section. Such written or electronic notification shall include a clearly labeled section or withholding forms and a separate handout with information about the advanced payment of the earned income credit in the six most common languages spoken by individuals in this state.
(2) The commissioner shall provide information of the availability of earned income advance amounts under this section to tax preparers, accountants and organizations that assist individuals in tax preparation. Such information shall be distributed to qualifying individuals.
(f) Coordination with advance payments of earned income credit.
(1) Recapture of excess advance payments. If any payment is made to the individual by the commissioner under this section during any calendar year, then the tax imposed by this chapter for the individual's last taxable year beginning in such calendar year shall be increased by the aggregate amount of such payments.
(2) Safe harbor against recapture of excess advance payments. If an individual establishes that they are requesting and receiving payments under this section in good-faith by establishing that they properly claimed payments under this section in the prior year and that they have not experienced a substantial change in circumstances such that they have a reasonable expectation of eligibility in the current year, then paragraph one of this subsection shall not apply.
(3) Reconciliation of payments advanced and credit allowed. Any increase in tax under this subsection shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit allowed by subsection (d) or (d-1) of section six hundred six of this article) allowable under this article.
§ 2. The administrative code of the city of New York is amended by adding a new section 11-1763 to read as follows:
§ 11-1763 Advance payment of earned income credit. (a) General rule. Except as otherwise provided in this chapter, the commissioner shall
S. 6259--C 3
provide for the pre-payment of the earned income credit to qualifying employees.
(b) Earned income eligibility certificate. For purposes of this chapter, an earned income eligibility certificate is a statement furnished by an employee to the commissioner which:
(1) certifies that the employee will be eligible to receive an earned income credit or an enhanced earned income credit provided by subdivision (d) of section 11-1706 of this chapter for the taxable year,
(2) certifies that the employee has one or more qualifying children for such taxable year,
(3) certifies that the employee does not have an earned income eligibility certificate in effect for the calendar year with respect to the payment of wages by another employer, and
(4) states whether or not the employee's spouse has an earned income eligibility certificate in effect.
For purposes of this section, a certificate shall be treated as being in effect with respect to a spouse if such a certificate will be in effect on the first status determination date following the date on which the employee furnishes the statement in question.
(c) Earned income advance amount. Four advanced payments shall be made to such qualifying employees. An estimated annual tax credit shall be determined by the commissioner in advance of the first payment, and shall be subject to adjustment due to changes in employment or family status over the course of the year. Prior to disbursement, the commissioner shall ensure that the qualifying employee's status has not changed. The first three advanced payments shall be made during the taxable year and shall be twenty percent of the anticipated credit. The fourth advanced payment shall be made after the tax year is over, and shall be adjusted to match the actual credit due. Such payments shall, to the extent practicable be made available via direct deposit and via electronic benefit transfer (EBT) card.
(d) Form and contents of certificate. Earned income eligibility certificates shall be in such form and contain such other information as the commissioner may by regulations prescribe.
(e) Notification. (1) The commissioner shall notify all taxpayers who have one or more qualifying children and who receive a refund of the credit under subdivision (d) of section 11-1706 of this chapter in writing of the availability of earned income advance amounts under this section. Such written or electronic notification shall include a clearly labeled section or withholding forms and a separate handout with information about the advanced payment of the earned income credit in the six most common languages spoken by individuals in this state.
(2) The commissioner shall provide information of the availability of earned income advance amounts under this section to tax preparers, accountants and organizations that assist individuals in tax preparation. Such information shall be distributed to qualifying individuals.
(f) Coordination with advance payments of earned income credit.
(1) Recapture of excess advance payments. If any payment is made to the individual by the commissioner under this section during any calendar year, then the tax imposed by this chapter for the individual's last taxable year beginning in such calendar year shall be increased by the aggregate amount of such payments.
(2) Safe harbor against recapture of excess advance payments. If an individual establishes that they are requesting and receiving payments under this section in good-faith by establishing that they properly claimed payments under this section in the prior year and that they have
S. 6259--C 4
not experienced a substantial change in circumstances such that they have a reasonable expectation of eligibility in the current year, then paragraph one of this subdivision shall not apply.
(3) Reconciliation of payments advanced and credit allowed. Any increase in tax under this subdivision shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit allowed by subdivision (d) of section 11-1706 of this chapter) allowable under this chapter.
§ 3. This act shall take effect one year after it shall have become a law and shall apply to taxable years beginning on or after such date. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
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 and the administrative code of the city of New York, in relation to advance payment of the earned income credit
Purpose
This would grant qualified workers the option to elect to receive their earned income tax credit (EITC) through periodic payments throughout the year rather than in a once-a-year lump sum only.
Summary of provisions
Section 1: (a)Amends the tax law and creates an advanced payment for the earned income tax credit;
(b) Defines the earned income eligibility certificate, which shall be furnished by the employee to the employer and certifying that the employee will be eligible for the EITC, whether the employee has quali- fying children, that the employee does not have an EITC certificate with another employer, and whether or not the employee's spouse has a EITC certificate in effect;
(c) Establishes the advanced EITC amount on the basis of the employee's wages and in accordance with tables set forth by the commissioner of the department of taxation and finance;
(d) Establishes that payments shall be treated as payments of withhold- ing;
(e) Establishes that advanced EITC certificates shall take effect at the beginning of the first payroll period ending on or after the date on which the certificate was furnished;
(f) Establishes that the commissioner shall take the necessary steps to ensure that taxpayers with qualifying children are aware of the avail- ability of the advanced EITC;
(g) Sets forth that excess advanced EITC payments will be recaptured in subsequent years, however, if the taxpayer can establish that they are requesting the advanced EITC in good-faith then such recapture provision shall not apply.
Section 2: Establishes the effective date.
Existing law
Currently, the EITC is disbursed only in one payment after tax returns have been filed.
Justification
Every year millions of New Yorkers file to claim their earned income tax credit. For many, this is a one-time lump sum payment received during tax season that can help pay for food, housing, transportation, commer- cial debt, or other debt costs. Unfortunately, for many taxpayers wait- ing a year to receive this credit can be burdensome. Accordingly, this bill seeks to provide taxpayers the option of receiving their tax credit in advance through period payments throughout the year along with their regular wages. For some, this might be a more attractive way of receiv- ing their credit and allowing them to better budget and defray their living costs throughout the year.
Legislative history
New Bill.
Fiscal implications
None.
Local fiscal implications
None.
Effective date
This act shall take effect one year after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.