Relates to calculation of the earned income credit

This bill (A 5661) changes New York State's earned income credit (EIC) calculation for tax years starting in 2026, setting the applicable credit percentage at 45% for qualifying low-income taxpayers. It directly affects New York residents who claim the EIC, increasing their state credit amount. The bill includes a safeguard: if federal actions materially reduce New York's ability to use Temporary Assistance for Needy Families (TANF) block grant funds for the EIC, the credit percentage would drop to 20% for affected years. The change applies to tax years beginning January 1, 2026, and requires state officials to certify any triggering federal event.