Bill > S00277

This bill provides for a New York state working families tax credit. The key provisions are: 1. The existing earned income tax credit (EITC) will be gradually reduced over 4 years for taxpayers with qualifying children through age 17, from 25% of the federal EITC to 10%, and then eliminated entirely in the 5th year and beyond. However, taxpayers with qualifying children and other dependents will continue to receive the full EITC. 2. Starting in the first year, a new "New York state working families tax credit" will be established, providing a credit of $550 per qualifying child in the first year, increasing to $1,600 per qualifying child through age 17 by the 5th year (with the amounts adjusted for inflation). 3. The credit will be reduced based on the taxpayer's New York state adjusted gross income, with the reduction thresholds decreasing from $75,000/$110,000 in the first year to $25,000/$50,000 by the 5th year. 4. The bill also directs the tax commissioner to provide for quarterly prepayment of the working families credit starting in the 4th year, to assist low-income families.