New York Senate Bill S02082

New York 2025-2026 Regular Session

• Introduced: 1/15/25
• Refer: 1/15/25
• Report Pass: 2/11/25
• 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 S02082 amends New York's tax law to establish a working families tax credit aimed at providing financial relief to low- and middle-income families. The bill outlines a gradual reduction of the earned income credit for taxpayers with qualifying children through age seventeen over a five-year period, ultimately phasing it out to zero. Additionally, it introduces a new working families tax credit that increases incrementally over the first four years and adjusts for inflation, providing significant support to families with children.

Impact

The bill impacts state tax laws by introducing a new working families tax credit while modifying existing earned income credits. It establishes income thresholds that determine eligibility for the credit and outlines a mechanism for prepayment of the credit to qualifying taxpayers. This change aims to enhance financial support for families, particularly those with children, while also adjusting tax liabilities based on income levels.

Sentiment

The sentiment surrounding Bill S02082 appears to be positive, as indicated by the unanimous support in the Senate Budget and Revenue Committee vote, where it received 7 votes in favor and none against. This suggests a bipartisan agreement on the importance of supporting working families through tax relief measures.

Contention

While the bill has garnered support, there may be contention regarding the phased reduction of the earned income credit, which could affect families who rely on this credit for financial stability. Some lawmakers may express concerns about the long-term implications of reducing credits and the impact on families as they transition to lower credits over time.