Bill > S05165

This bill provides a mechanism for advance payment of the earned income tax credit (EITC) to qualifying employees in New York State and New York City. Under this legislation, the tax commissioners will allow eligible employees with qualifying children to receive four advance payments throughout the year, each representing 20% of their anticipated annual tax credit. To participate, employees must submit an earned income eligibility certificate that confirms their expected credit eligibility, number of qualifying children, and verifies they are not receiving similar advances from another employer. The first three payments will be made during the tax year, with the final payment adjusted after year-end to match the actual credit amount. The bill mandates that these payments be made available via direct deposit or electronic benefit transfer (EBT) card, and requires tax authorities to notify potential recipients and provide information in the six most common languages spoken in the state. The legislation also includes provisions for recapturing excess advance payments through tax adjustments, with a "safe harbor" provision for individuals who claimed payments in good faith based on their prior year's eligibility. The bill will take effect one year after becoming law and will apply to taxable years beginning on or after that date.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5165