New York Assembly Bill A04395

New York 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/4/25
• Refer: 1/7/26

Caption

Relates to requiring the commissioner of taxation and finance in conjunction with the health department and the office of temporary and disability assistance to conduct a study on the earned income tax credit and to propose changes thereto.

Summary

Bill A04395 mandates a study on the New York State earned income tax credit (EITC) to be conducted by the commissioner of taxation and finance in collaboration with the department of health and the office of temporary and disability assistance. The purpose of the study is to explore potential adjustments to the EITC that would mitigate any loss of public benefits for recipients as they increase their earned income. This aims to ensure that individuals benefit from increased employment without facing a decrease in their net income due to the loss of public assistance.

Impact

If enacted, this bill could lead to significant changes in how the earned income tax credit is structured in New York State. By proposing adjustments to the EITC, the study could influence future legislation aimed at enhancing financial support for low-income workers, potentially improving their overall economic stability. This may also affect related public assistance programs and their interaction with tax credits, thereby impacting the financial landscape for many residents.

Sentiment

The sentiment surrounding Bill A04395 appears to be cautiously optimistic, with support for the intent to study and potentially improve the EITC. However, there may be concerns regarding the feasibility of implementing changes based on the study's findings and the implications for state funding and public assistance programs.

Contention

Notable points of contention may arise around the potential costs associated with implementing changes to the EITC based on the study's recommendations. Some lawmakers may express concerns about the impact on the state budget and the balance between providing tax relief and maintaining adequate funding for public assistance programs. Additionally, differing opinions may exist on the effectiveness of the EITC as a tool for economic support.