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Bill

S 3648

Provides for the installment payment for the earned income credit

2025 Regular Session Introduced by Dean Murray

New York bill allowing earned income tax credit recipients to receive payments in installments rather than lump-sum refunds to improve cash flow for low-income workers.

REFERRED TO BUDGET AND REVENUE
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Bill Summary · S 3648

Legislative bill overview

S 3648 would allow taxpayers to receive the earned income tax credit (EITC) through installment payments rather than as a lump sum refund. This modifies how New York State distributes the credit to eligible low- and moderate-income workers who claim it on their tax returns.

Why is this important

The EITC is a major anti-poverty program benefiting millions of working families. Installment payments could improve cash flow for households living paycheck-to-paycheck by spreading the credit across the year rather than delivering it all at once, potentially reducing reliance on predatory tax refund advances and payday loans.

Potential points of contention

  • Administrative complexity: State tax systems would need reprogramming to process and track installment payments, creating operational costs and potential errors
  • Federal coordination: New York's installment system must coordinate with federal EITC rules; conflicting payment structures could confuse taxpayers or create compliance issues
  • Reduced financial impact: A single large refund helps some families with major expenses (car repairs, security deposits); installments may be insufficient for lump-sum needs
  • Voluntary vs. mandatory: Unclear if installments would be optional or required, affecting taxpayer choice and program uptake

Compiled from official sources — confirm details with the bill’s official record.

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