Bill > A03474

This bill establishes a new New York State Working Families Tax Credit that provides financial support to families with qualifying children, with a gradually increasing credit amount over several years and a sliding reduction for higher-income taxpayers. Specifically, the credit will start at $550 per qualifying child in the first year and increase to $1,600 per qualifying child through age 17 by the fifth year, with annual inflation adjustments. The credit amount will be reduced by $20 for every $1,000 of income above certain thresholds, which decrease over time from $75,000 for single filers to $25,000 in the fifth year. Beginning in the fourth year, the state will provide quarterly prepayments of the credit, estimated in advance and adjusted at year-end. The bill ensures that the credit will never drop below $100 per qualifying child and includes provisions to protect taxpayers from penalties for good-faith prepayment errors. Additionally, the bill specifies that the credit will be treated similarly to the federal Earned Income Tax Credit and will not be counted as income or assets when determining eligibility for other state or local benefits. The legislation also modifies existing tax law to accommodate these changes, including adjustments to personal exemptions for qualifying children.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3474