Bill > A02498

This bill increases the Earned Income Tax Credit (EITC) in New York State for taxable years beginning in 2025, raising the applicable percentage from 30% to 45% of the federal EITC. Additionally, the bill introduces a new optional payment method for taxpayers who can choose how they receive their tax credit: credits of $200 or less will be paid in a lump sum, credits between $200 and $2,400 will be distributed as three quarterly checks of 25% each with a final balance included in the tax return, and credits of $2,400 or more will be paid in 12 equal monthly installments. The EITC is a tax benefit designed to assist low to moderate-income working individuals and families by providing a refundable tax credit that can help offset income taxes and provide additional financial support. The bill also maintains a provision that allows for a reduction in the credit percentage if federal funding for the Temporary Assistance for Needy Families block grant is materially reduced or eliminated. The changes will take effect 120 days after the bill becomes law.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2498