NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8219
SPONSOR: Nolan (MS) TITLE OF BILL: An act to amend the tax law, in relation to the empire
state child credit and the family tax relief credit
PURPOSE OR GENERAL IDEA OF BILL:
SUMMARY OF SPECIFIC PROVISIONS:
Section one of the bill would increase the percentage from 33% to 60% of
the child tax credit that a New York state resident taxpayer would be
allowed under the Empire State child credit program beginning with tax
year 2016.
Section two would make permanent the Family Tax relief credit program,
which provides resident taxpayers with a credit up to $350, for house-
holds with income between $40,000 and $130,000.
Section three provides that this act shall take effect immediately.
JUSTIFICATION:
The costs associated with raising a family continue to increase. In
today's uneven economic environment, the rising costs seriously chal-
lenge the ability of working and low-income families in New York to pay
for basic needs of their children and that includes their education. The
Child Tax Credit and the Family Credit help.
This bill improves the state Child Tax Credit and makes permanent the
Family Tax Relief Credit. The bill reflects and recognizes that New York
families face still rising costs of raising children, the difficulties
of working and low-income families to pay for the needs of their chil-
dren and the success of tax credits to alleviate the tax burden of these
families. These tax credits are powerful weapons against poverty. In
2013 the federal Child Tax Credit protected approximately 3.1 million
people from poverty, including 1.7 million children. In addition,
research further suggests that boosting working families' incomes can
expand opportunities for children such as improved school attendance and
performance.
Under the current Empire State Child Tax Credit, New York state resident
taxpayers with children ages 4-16 may claim a credit equalto the great-
er of $100 times the number of children who child tax credit. The Feder-
al credit is currently a maximum of $1,000 per child, and phases out
beginning at $110,000 of Federal gross income for married taxpayers
filing jointly. This bill would increase the percentage to 60%.
The current Family Tax Relief Credit program allows resident taxpayers
with state adjusted gross income between $40,000 and $300,000 to claim a
refundable credit of up to $350 per return for tax years 2014 through
2016. This bill would make this credit permanent starting with tax year
2017 for taxpayers who earn between $40,000 and $130,000 annually.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
