Adjusts the calculation of the empire state child credit to provide for a one thousand dollar credit per qualifying child who is less than four years of age and a five hundred dollar credit per qualifying child who is four years of age or older for certain qualifying taxpayers.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2464
SPONSOR: Hevesi TITLE OF BILL:
An act to amend the tax law, in relation to the calculation of the
empire state child credit
PURPOSE:
This bill amends Paragraph 1 of subsection (c-i) of section 606 of the
tax law, as amended by section i of part P of chapter 59 of the laws of
2018.
SUMMARY OF PROVISIONS:
Eligible resident taxpayers shall be allowed a credit as provided herein
equal to the greater of (one): A) five hundred dollars times the number
of qualifying children of the taxpayer who are four years of age or
older and one thousand dollars times the number of qualifying children
of the taxpayer who are less than four years of age; or (B) the applica-
ble percentage of the child tax credit allowed the taxpayer under
section twenty-four of the internal revenue code for the same taxable
year for each qualifying child.
Provided, however, in the case of a taxpayer whose federal adjusted
gross income exceeds the applicable threshold amount set forth by
section 24(b)(2) of the Internal Revenue Code, the credit shall only be
equal to the applicable percentage of the child tax credit allowed the
taxpayer under section 24 of the Internal Revenue Code for each qualify-
ing child. For the purposes of this subsection, a qualifying child shall
be a child who meets the definition of qualified child under section
24(c) (1) of the internal revenue code (and is at least four years of
age). The applicable percentage shall be thirty-three percent. For
purposes of this subsection, any reference to section 24 of the Internal
Revenue Code shall be a reference to such section as it existed imme-
diately prior to the enactment of Public Law 115-97. To be eligible for
the tax credit, a resident taxpayer must have a New York State adjusted
gross income of less than: $75,000 for an individual who is not married;
$110,00o in the case of a joint return; and $55,000 in the case of a
married individual filing a separate return.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
JUSTIFICATION:
New York children are more likely to live in poverty than in 31 other
states. This is not a new trend. For more than a decade, the percentage
of New York children living in poverty has stagnated at about 20%. And,
due to structural inequities, child poverty among New York children of
color has long exceeded 30%. In some New York communities, the child
poverty rate approaches 50%. (2) Currently, 743,000 New York children
live in poverty, (3) with an additional 795,000 children residing in
low-income households living between loo and 200% of the poverty level.
(4) That's over 1.5 million New York children living in families strug-
gling to pay rent, heat their homes, get transportation, and feed their
children. Notably, the younger the child, the more likely the child is
to experience poverty, with babies and toddlers under age three experi-
encing poverty at the highest rate (23.4%), exactly when they are most
vulnerable to poverty's impacts. 5 Recently, the federal administration
has proposed numerous changes to federal law and regulations, including
changes to the public charge rule, alterations to SNAP, and the manner
in which the official poverty measure is calculated, that, if enacted,
could dramatically reduce anti-poverty supports for children and fami-
lies in New York and across the nation. Accordingly, now more than ever,
New York must make reducing child and family poverty a top state priori-
ty - this year, and for the next decade. With the 14th strongest economy
in the nation,6 and a $173 billion annual budget, New York certainly has
the means to tackle child poverty. Instead, New York leaders have made
the choice, year after year, to allow hundreds of thousands of New York
children to experience poverty. And they have repeatedly made that
choice even though it is now well understood that experiencing poverty
as a child can cause devastating and end uring harm to children's phys-
ical and mental health, educational success, and future earnings.
LEGISLATIVE HISTORY:
2021-2022: A.3146-A; 2019-2020: A.8835, A.8835; 2021: 3146
BUDGET IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall be effective immediately and shall apply to qualified
children as defined prior to the enactment of Public Law 115-97 who do
not receive the child tax credit under the American Rescue Plan Act of
2021; and shall apply to all other qualified children as defined prior
to the enactment of Public Law 115-97 in the first tax year after the
child tax credit under the American Rescue Plan of 2021 has ended or in
taxable years commencing on or after January 1, 2024 whichever is later.
(1) Kids Count Data Center: A Project of the Annie E. Casey Foundation.
State rankings by children in poverty. 2018.
https://datacenter.kidscount.org/ dataitables/ 43-chil-
dren.-inpoverty?loc=i 8doct.
(2) l'Snidne2/allyitTUe/37/ally/322 2 U.S. Census Bureau. (2017). Chil-
dren characteristics: 2012-2017 American Community Survey 5-Year Esti-
mates. https://factfinder.census.gov/
faces/tableservices/jsf/pages/productview. xhtml?src=CF. (Buffalo 47.2%,
Rochester - 51.9%, Syracuse - 46.7%)
(3) Kids Count Data Center: A Project of the Annie E. Casey Foundation.
New York: Children 100% of poverty.2018.https.
fidatacen/er.bdscountorg/dataitables/43-children- inpoverty-loo-percent
poverty? loc=348doct=2detailed/2/34/false/37,
871,870,573,869,36,868,867, 133,38/any/321,322
(4) httPs://datacenter.lddscountorg/dataitables/47- children-below-200-
percentpoverty?loc=348docr = 2
d.erailed/2/34/faiSq37,871,870,573,869,36,868, 867,133,38/any/329,3305
The State of New York Babies. State of Babies Yearbook 2019. Created by:
Zero to Three, Child Trends, and Think Babies.haps:// stateofba-
bies.orgidatafiNew York 6 Andy Kierscz, Every US State Economy Ranked
from Best to Worst. Business Insider. (March 15, 2018).
STATE OF NEW YORK
________________________________________________________________________
2464
2023-2024 Regular Sessions
IN ASSEMBLY
January 26, 2023
___________
Introduced by M. of A. HEVESI, CLARK, SIMON, RIVERA, MITAYNES, FAHY,
OTIS, BRONSON, REYES, FORREST, MEEKS, ROZIC, PAULIN, WEPRIN -- read
once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the calculation of the
empire state child credit
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 1 of subsection (c-1) of section 606 of the tax
2 law, as amended by section 1 of part P of chapter 59 of the laws of
3 2018, is amended to read as follows:
4 (1) A resident taxpayer with a New York state adjusted gross income of
5 less than seventy-five thousand dollars in the case of an individual who
6 is not married; one hundred ten thousand dollars in the case of a joint
7 return; or fifty-five thousand dollars in the case of a married individ-
8 ual filing a separate return shall be allowed a credit as provided here-
9 in equal to the greater of [one]: (A) five hundred dollars times the
10 number of qualifying children of the taxpayer who are four years of age
11 or older and one thousand dollars times the number of qualifying chil-
12 dren of the taxpayer who are less than four years of age; or (B) the
13 applicable percentage of the child tax credit allowed the taxpayer under
14 section twenty-four of the internal revenue code for the same taxable
15 year for each qualifying child. Provided, however, in the case of a
16 taxpayer whose federal adjusted gross income exceeds the applicable
17 threshold amount set forth by section 24(b)(2) of the Internal Revenue
18 Code, the credit shall only be equal to the applicable percentage of the
19 child tax credit allowed the taxpayer under section 24 of the Internal
20 Revenue Code for each qualifying child. For the purposes of this
21 subsection, a qualifying child shall be a child who meets the definition
22 of qualified child under section 24(c) (1) of the internal revenue code
23 [and is at least four years of age]. The applicable percentage shall be
24 thirty-three percent. For purposes of this subsection, any reference to
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02530-01-3
A. 2464 2
1 section 24 of the Internal Revenue Code shall be a reference to such
2 section as it existed immediately prior to the enactment of Public Law
3 115-97.
4 § 2. This act shall take effect immediately and shall apply to quali-
5 fied children as defined prior to the enactment of Public Law 115-97 who
6 do not receive the child tax credit under the American Rescue Plan Act
7 of 2021; provided further, that this act shall apply to all other quali-
8 fied children as defined prior to the enactment of Public Law 115-97 in
9 the first tax year after the child tax credit under the American Rescue
10 Plan Act of 2021 has ended or in taxable years commencing on or after
11 January 1, 2024, whichever is later.
