Bill > A04395

This bill requires the Commissioner of Taxation and Finance, in collaboration with the Department of Health and the Office of Temporary and Disability Assistance, to conduct a comprehensive study on the New York State Earned Income Tax Credit (EITC). The Earned Income Tax Credit is a refundable tax credit designed to provide financial support to low to moderate-income working individuals and families. The specific focus of the study is to identify and propose changes to the tax credit that would help mitigate the potential loss of public benefits that can occur when individuals increase their employment earnings. By recommending adjustments to the EITC, the bill aims to ensure that recipients experience a genuine net income increase when they earn more money, thus avoiding potential disincentives to employment. The study must be completed and submitted to the state legislature by April 15, 2026, and the act will take effect immediately upon passage. This approach reflects an effort to create a more supportive tax and benefits system that encourages work while protecting vulnerable populations from unintended financial penalties.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A4395