New York 2025-2026 Regular Session

New York Senate Bill S05165

Introduced
2/19/25  
Refer
2/19/25  

Caption

Provides for advance payment of the earned income credit by employers, the commissioner of the department of taxation and finance and the commissioner of New York City's department of finance.

Summary

Bill S05165 proposes to amend the tax law and the administrative code of New York City to allow for the advance payment of the earned income credit (EIC) to qualifying employees. The bill mandates that the commissioner will provide for pre-payments of the EIC, which is designed to assist low-income workers by providing them with financial support throughout the year rather than as a lump sum at tax time. Employees eligible for this advance payment must certify their eligibility and family status, and the bill outlines the process for determining and disbursing these payments.

Impact

The bill will significantly alter the way the earned income credit is distributed in New York, allowing qualifying employees to receive four advance payments based on estimated annual tax credits. This change aims to improve cash flow for low-income families, potentially reducing financial strain throughout the year. It also requires the commissioner to notify taxpayers and tax preparers about the availability of these advance payments, which may increase participation in the EIC program.

Sentiment

The sentiment surrounding Bill S05165 appears to be generally supportive, as it aims to provide immediate financial relief to low-income workers. However, there may be concerns regarding the administrative feasibility of implementing advance payments and ensuring accurate eligibility assessments. The lack of voting history and committee discussions makes it difficult to gauge opposition or specific concerns from legislators.

Contention

Notable points of contention may arise regarding the administrative burden placed on the commissioner to manage the advance payments and ensure compliance with eligibility requirements. There may also be differing opinions on the potential for overpayments and the mechanisms for recapturing excess payments, which could affect low-income families if not handled properly. Stakeholders such as tax preparers and advocacy groups may have varying perspectives on the implementation details.

Companion Bills

NY A04959

Same As Provides for advance payment of the earned income credit by employers, the commissioner of the department of taxation and finance and the commissioner of New York City's department of finance.

Previously Filed As

NY A04959

Provides for advance payment of the earned income credit by employers, the commissioner of the department of taxation and finance and the commissioner of New York City's department of finance.

NY S1568

Use of Digital Currency by the Department of Financial Services

NY S04425

Provides for the advance payment of the earned income tax credit to qualifying employees.

NY A06000

Provides for the advance payment of the earned income tax credit to qualifying employees.

NY H1221

Department of Financial Services

NY S1452

Department of Financial Services

NY H1415

Use of Digital Currency by the Department of Financial Services

NY S08829

Directs the commissioner of taxation and finance to develop procedures for the use or acceptance of signatures in digital or other electronic form on any declaration, statement, or other document utilized by the department and authorizes the use of an electronic signature by a person granted a power of attorney by a taxpayer with respect to documents submitted to the New York state department of taxation and finance.

NY A09431

Directs the commissioner of taxation and finance to develop procedures for the use or acceptance of signatures in digital or other electronic form on any declaration, statement, or other document utilized by the department and authorizes the use of an electronic signature by a person granted a power of attorney by a taxpayer with respect to documents submitted to the New York state department of taxation and finance.

NY H1281

Department of Financial Services

Similar Bills

No similar bills found.