New York Assembly Bill A03474

New York 2025-2026 Regular Session

• Introduced: 1/27/25
• Refer: 1/27/25
• Refer: 1/7/26

Caption

Provides for a working families tax credit; directs quarterly prepayment of the credit; provides for a sliding reduction in the credit for incomes which exceed a certain threshold.

Summary

Bill A03474 proposes amendments to the New York State tax law to establish a Working Families Tax Credit aimed at providing financial relief to families with qualifying children. The bill outlines a gradual reduction of the earned income credit over a four-year period, ultimately phasing it out. It also introduces a new tax credit structure that increases annually for qualifying children through age seventeen, starting at $550 and reaching $1,600 by the fifth taxable year. Additionally, the bill allows for quarterly prepayments of the credit to eligible taxpayers, enhancing accessibility and financial planning for families.

Impact

The bill will significantly alter the existing tax credit framework in New York State by introducing a new Working Families Tax Credit and modifying the earned income credit. It will impact low to moderate-income families, providing them with increased financial support through tax credits that adjust for inflation. The gradual reduction of the earned income credit may affect families who rely on this credit as their income rises, potentially leading to a decrease in available tax relief for those families over time.

Sentiment

The sentiment surrounding Bill A03474 appears to be generally supportive among its sponsors and advocates, as it aims to assist working families and alleviate financial burdens. However, there may be concerns regarding the phased reduction of the earned income credit, which could be viewed as a disadvantage for families whose incomes exceed the specified thresholds. The absence of recorded votes or committee discussions limits the ability to gauge broader legislative sentiment.

Contention

Notable points of contention may arise regarding the reduction of the earned income credit, particularly among advocates for low-income families who may argue that the gradual phase-out could leave some families without necessary support as they strive for higher incomes. Additionally, there may be debates about the adequacy of the proposed credit amounts and the thresholds for income reduction, with differing opinions on whether they sufficiently address the needs of working families.