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A08219 Summary:

COSPNSRBrennan, Bronson, Fahy, Lifton, Ortiz, Benedetto, Seawright, Bichotte
MLTSPNSRSimon, Solages
Amd S606, Tax L
Relates to the empire state child credit and the family tax relief credit.
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A08219 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  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.
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