Bill Text: NY A05442 | 2023-2024 | General Assembly | Introduced

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Bill Title: Relates to calculation of the earned income credit for taxable years beginning in 2024, provides the applicable percentage shall be 45%.

Spectrum: Partisan Bill (Republican 17-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A05442 Detail]

Download: New_York-2023-A05442-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5442

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                     March 10, 2023
                                       ___________

        Introduced  by  M.  of  A.  BARCLAY, HAWLEY, PALMESANO, RA, BLANKENBUSH,
          NORRIS, SMITH, WALSH, MILLER, MANKTELOW, JENSEN, GALLAHAN,  DeSTEFANO,
          SIMPSON,  BRABENEC  -- Multi-Sponsored by -- M. of A. K. BROWN -- read
          once and referred to the Committee on Ways and Means

        AN ACT to amend the tax law, in relation to calculation  of  the  earned
          income credit

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph 1 of subsection (d) of section  606  of  the  tax
     2  law,  as  amended  by  section  1 of part Q of chapter 63 of the laws of
     3  2000, is amended to read as follows:
     4    (1) General. A taxpayer shall be allowed a credit as  provided  herein
     5  equal  to  (i)  the  applicable  percentage  of the earned income credit
     6  allowed under section thirty-two of the internal revenue  code  for  the
     7  same taxable year, (ii) reduced by the credit permitted under subsection
     8  (b) of this section.
     9    The  applicable percentage shall be (i) seven and one-half percent for
    10  taxable years  beginning  in  nineteen  hundred  ninety-four,  (ii)  ten
    11  percent  for  taxable  years  beginning in nineteen hundred ninety-five,
    12  (iii) twenty percent for taxable years beginning after nineteen  hundred
    13  ninety-five  and  before  two  thousand,  (iv)  twenty-two  and one-half
    14  percent for taxable years beginning in  two  thousand,  (v)  twenty-five
    15  percent  for  taxable  years beginning in two thousand one, (vi) twenty-
    16  seven and one-half percent for taxable years beginning in  two  thousand
    17  two, [and] (vii) thirty percent for taxable years beginning in two thou-
    18  sand three, and (viii) forty-five percent for taxable years beginning in
    19  two thousand twenty-four and thereafter.  Provided, however, that if the
    20  reversion  event,  as  defined in this paragraph, occurs, the applicable
    21  percentage shall be twenty percent for taxable years ending on or  after
    22  the  date  on  which  the  reversion event occurred. The reversion event
    23  shall be deemed to have occurred on the date on  which  federal  action,

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02617-01-3
        A. 5442                             2

     1  including  but  not  limited to, administrative, statutory or regulatory
     2  changes, materially reduces or eliminates New York state's allocation of
     3  the federal temporary assistance for  needy  families  block  grant,  or
     4  materially  reduces  the ability of the state to spend federal temporary
     5  assistance for needy families block grant funds for  the  earned  income
     6  credit  or  to  apply  state  general fund spending on the earned income
     7  credit toward the temporary assistance for needy  families  block  grant
     8  maintenance of effort requirement, and the commissioner of the office of
     9  temporary and disability assistance shall certify the date of such event
    10  to  the  commissioner of taxation and finance, the director of the divi-
    11  sion of the budget, the speaker of the assembly and the temporary presi-
    12  dent of the senate.
    13    § 2. This act shall take effect immediately and shall apply to taxable
    14  years beginning on and after January 1, 2024.