Increases the applicable percentage of the child tax credit allowed in the empire state child tax credit from thirty-three percent to forty-five percent; prescribes how such payment or refund should be made based on amount.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9257
SPONSOR: Ra TITLE OF BILL:
An act to amend the tax law, in relation to increasing the applicable
percentage of the child tax credit allowed in the empire state child tax
credit to forty-five percent
PURPOSE OR GENERAL IDEA OF BILL:
To increase the Empire State Child Credit amount from 33% of a taxpay-
er's Federal Child Tax Credit amount to 45% and to allow advanced credit
payments.
SUMMARY OF PROVISIONS:
Section 1: Increases the applicable percentage of the Empire State Child
Credit from 33% to 45% of a taxpayer's Federal Child Tax Credit amount.
Section 2: Provides the option for taxpayers to elect to receive
advanced payments of expected credits.
Section 3: Sets forth the effective date.
JUSTIFICATION:
In 2021, the Federal government passed the American Rescue Plan Act,
which included a significant increase to the Federal Child Tax Credit
and allowed for the advanced payment of the credit to an eligible
taxpayer. This enhanced credit was responsible for reducing child pover-
ty rates to their lowest levels on record. However, this enhanced credit
was only available for one year, after which it expired. As a result of
the enhanced credit's expiration, child poverty rates have doubled.
Enhancing the Empire State Child Credit and allowing for advanced
payments to eligible taxpayers would provide a tremendous resource for
parents. The utilization of advanced payments are a proven way of alle-
viating a burden on low-income families by helping to defray the costs
of everyday essentials, such as diapers, formula, and food.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Approximately $299 million in additional State spending.
EFFECTIVE DATE:
This Act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9257
IN ASSEMBLY
February 22, 2024
___________
Introduced by M. of A. RA, JENSEN, GANDOLFO, MAHER, SLATER -- read once
and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the applicable
percentage of the child tax credit allowed in the empire state child
tax credit to forty-five percent
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 (c-1) of section 606 of the tax
2 law, as amended by section 1 of part HH of chapter 56 of the laws of
3 2023, is amended to read as follows:
4 (1) A resident taxpayer shall be allowed a credit as provided herein
5 equal to the greater of one hundred dollars times the number of qualify-
6 ing children of the taxpayer or the applicable percentage of the child
7 tax credit allowed the taxpayer under section twenty-four of the inter-
8 nal revenue code for the same taxable year for each qualifying child.
9 Provided, however, in the case of a taxpayer whose federal adjusted
10 gross income exceeds the applicable threshold amount set forth by
11 section 24(b)(2) of the Internal Revenue Code, the credit shall only be
12 equal to the applicable percentage of the child tax credit allowed the
13 taxpayer under section [24] twenty-four of the Internal Revenue Code for
14 each qualifying child. For the purposes of this subsection, a qualifying
15 child shall be a child who meets the definition of qualified child under
16 section 24(c) of the internal revenue code. The applicable percentage
17 shall be [thirty-three] forty-five percent. For purposes of this
18 subsection, any reference to section [24] twenty-four of the Internal
19 Revenue Code shall be a reference to such section as it existed imme-
20 diately prior to the enactment of Public Law 115-97.
21 § 2. Subsection (c-1) of section 606 of the tax law is amended by
22 adding a new paragraph 5 to read as follows:
23 (5) For taxable years beginning on or after January first, two thou-
24 sand twenty-four, an empire state child credit pursuant to this
25 subsection may, at the election of the taxpayer in a form and manner to
26 be prescribed by the commissioner, be paid to the taxpayer as follows:
27 (i) for amounts equal to or less than two hundred dollars, the payment
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13718-02-3
A. 9257 2
1 or refund shall be made in a lump sum; (ii) for amounts in excess of two
2 hundred dollars and less than two thousand four hundred dollars, the
3 payment or refund shall equal three quarterly checks each equal to twen-
4 ty-five percent of the taxpayer's anticipated credit amount, and the
5 remaining balance of such payment or refund shall be included in any
6 final refund owed to the taxpayer following the completion of the
7 taxpayer's tax return; and (iii) for amounts equal to or greater than
8 two thousand four hundred dollars, the payment or refund shall be paid
9 in equal monthly payments equal to the total amount thereof divided by
10 twelve.
11 § 3. This act shall take effect immediately and shall apply to taxable
12 years beginning on or after January 1, 2024.
