New York bill A05661 amends tax law to set the earned income credit percentage at 45% for taxable years starting in 2026.

New York bill A05661 amends the tax law to adjust the earned income credit calculation. Specifically, it sets the applicable percentage of the earned income credit at 45% for taxable years beginning in 2026. The bill also includes a provision that if a reversion event occurs, reducing the state's federal Temporary Assistance for Needy Families block grant allocation, the applicable percentage will revert to 20%. This act takes effect immediately and applies to taxable years beginning on and after January 1, 2026.

New York bill A05661 amends tax law to set the earned income credit percentage at 45% for taxable years starting in 2026.

New York bill A05661 amends the tax law to adjust the earned income credit calculation. Specifically, it sets the applicable percentage of the earned income credit at 45% for taxable years beginning in 2026. The bill also includes a provision that if a reversion event occurs, reducing the state's federal Temporary Assistance for Needy Families block grant allocation, the applicable percentage will revert to 20%. This act takes effect immediately and applies to taxable years beginning on and after January 1, 2026.