Bill > S06839

This bill increases the Earned Income Tax Credit (EITC) in New York State for taxable years beginning in 2025, making two key changes. First, it raises the state's EITC percentage from 30% to 45% of the federal EITC for tax years starting in 2025, which means eligible low to moderate-income workers will receive a larger tax credit. Second, the bill introduces a new option for how taxpayers can receive their EITC, allowing them to choose how they want to receive their credit: for credits of $200 or less, they can receive a lump sum; for credits between $200 and $2,400, they can receive three quarterly checks of 25% of the anticipated credit with a final balance included in their tax refund; and for credits of $2,400 or more, they can receive equal monthly payments spread across 12 months. The bill maintains a previous provision that if certain federal funding for temporary assistance is materially reduced, the EITC percentage could revert to 20%. The bill will take effect 120 days after becoming law, and state agencies are authorized to prepare implementing regulations in advance.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S6839