Bill > A04959

This bill provides for advance payment of the Earned Income Credit (EIC) by employers, the New York State Department of Taxation and Finance, and the New York City Department of Finance. The bill establishes a mechanism for qualifying employees with children to receive their anticipated tax credit in four installments throughout the year, with three payments of 20% during the tax year and a final reconciliation payment after the year ends. Employees must submit an "earned income eligibility certificate" certifying their expected credit eligibility, number of qualifying children, and unique employment status. The commissioner will estimate the annual tax credit in advance and adjust payments based on potential changes in employment or family status. Payments will be made via direct deposit or electronic benefit transfer (EBT) card when possible. The bill includes safeguards to prevent overpayment, such as a "safe harbor" provision that protects individuals who claimed payments in good faith in the previous year. Notifications about the advance payment option will be sent to eligible taxpayers and distributed to tax preparers and assistance organizations in the six most common languages spoken in the state. The act will take effect one year after becoming law and apply to taxable years beginning on or after that date.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A4959