Bill > S04425

This bill provides for the advance payment of the Earned Income Tax Credit (EITC) to qualifying employees, with several key provisions aimed at expanding and improving the tax credit. Starting in 2027, the bill increases the phaseout amount for the EITC from $11,610 to $24,960, allowing more low-income workers to benefit from the credit. The bill also modifies the credit percentage, increasing it to 35% in 2027 and 40% in 2028. Notably, the bill expands eligibility by lowering the age requirement from 25 to 19 years old and allows individuals over 65 to qualify for the credit. The advance payment mechanism will provide four payments throughout the year, with the first three payments being 20% of the anticipated credit and a final adjustment payment made after the tax year ends. Employers and the tax commissioner will be responsible for verifying employee eligibility through an earned income eligibility certificate, and the state will notify potential recipients through multiple channels, including written communications in the six most common languages spoken in the state. The bill aims to provide more immediate financial support to low-income workers by allowing them to receive their tax credit in smaller, more frequent installments rather than waiting for an annual tax refund.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S4425