New York Senate Bill S06839

New York 2025-2026 Regular Session

• Introduced: 3/25/25
• Refer: 3/25/25
• Refer: 1/7/26

Caption

Increases the earned income tax credit for taxable years beginning in 2025.

Summary

Bill S06839 proposes to amend New York's tax law to increase the earned income tax credit (EITC) for taxpayers beginning in the taxable year 2025. The bill sets the applicable percentage of the EITC at 45% for taxable years starting in 2025 and thereafter. It also introduces provisions for how taxpayers can receive their EITC payments, allowing for lump sum payments for smaller credits and quarterly or monthly payments for larger credits, depending on the amount of the credit claimed.

Impact

The bill will significantly impact the financial assistance provided to low- and moderate-income families in New York by increasing the EITC, thereby enhancing their disposable income. This change is expected to provide greater financial relief and support to families, potentially reducing poverty levels and encouraging workforce participation. The amendments to the payment structure will also offer more flexibility for taxpayers in managing their finances throughout the year.

Sentiment

The sentiment surrounding Bill S06839 appears to be generally positive, as it aims to provide increased financial support to working families. However, there may be concerns regarding the fiscal implications of increasing the EITC, particularly in relation to state budget allocations and the potential impact on other social programs.

Contention

Notable points of contention may arise from discussions about the fiscal responsibility of increasing tax credits, particularly regarding how it will affect state funding for other programs. Some lawmakers may express concerns about the sustainability of such tax credits in the face of potential federal funding cuts, especially related to the temporary assistance for needy families block grant.