[PavelMakarchuk]

PolicyEngine computed the 2021 New York supplemental EITC payment as 25% of the federal EITC. The law pays 25% of the New York State EIC, with a $25 minimum.

S.8009-C/A.9009-C (Ch. 59, L. 2022), Part NN §2, Tax Law §606(d)(8), bill page 88: "(8) For tax year two thousand twenty-one, the commissioner shall issue a payment of a supplemental earned income tax credit to resident taxpayers in the amount of twenty-five percent of the earned income tax credit calculated and allowed pursuant to this subsection. Such payment will be allowed to resident taxpayers who timely filed returns pursuant to section six hundred fifty-one of this article, determined with regard to extensions pursuant to section six hundred fifty-seven of this article. Provided, however, that no payment shall be issued if it is less than twenty-five dollars."

"This subsection" is §606(d), the New York State EIC.

NY Tax Department (archived 2022-10-20): "The payment for the earned income credit (or noncustodial parent earned income credit) is 25% of the amount of the credit you received for 2021."

Change

• ny_supplemental_eitc = supplemental_match × ny_eitc, or 0 when that is less than the new supplemental_minimum_payment ($25).
• ny_eitc does not depend on ny_supplemental_eitc, so there is no dependency cycle.
• Years before and after 2021 stay 0 (supplemental_match is 0 from 2019 and from 2022).
• supplemental_match no longer cites the 2023 and 2025 IT-201 instructions, which do not show the 2021 payment.
• Not modeled: the §606(d-1)(9) payment on the noncustodial parent EIC, because PE-US does not model the §606(d-1) credit.
• Assumed met: the timely-filing condition of §606(d)(8), because PE-US does not model filing dates. The variable and the test file say so.

Example (PolicyEngine/policyengine-taxsim#1185)

2021 head of household, one child, wages $24,097.71:

• Federal EITC: 3,618 − 0.1598 × (24,097.71 − 19,520) = 2,886.48 (TAXSIM v25 2,886.48)
• NY EIC: 0.30 × 2,886.48 − $60 household credit = 805.94 (TAXSIM v39 805.94)
• Payment: 0.25 × 805.94 = 201.49 (the old formula gave 721.62)

Tests

• ny_supplemental_eitc.yaml: the MD ACA subsidies #1185 household (201.49); a childless filer with a federal EITC but no NY EIC (0); NY EIC $300 → $75 (the Tax Department's example), $100 → $25, $99 → $0; 2018, 2020 and 2022 → 0.
• The old 2021 case set a federal eitc input, which the law does not use; it now sets ny_eitc.
• On the earlier head merged with main: 847 tests in the New York folder and 1,884 tests in 133 other files that use New York pass.
• On the current head (merged with main on 2026-10-22): 262 tests in the 25 files of the New York credits folder pass, and the code-health suite passes (426 passed, 1 skipped).

axiom: TheAxiomFoundation/rulespec-us#1868 queued

Refs PolicyEngine/policyengine-taxsim#1185

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[DTrim99]

PR Review: Base the 2021 New York supplemental EITC payment on the New York EIC

Summary

The policy fix is correct. Tax Law 606(d)(8), added by Ch. 59 of the Laws of 2022, Part NN section 2, pays 25% of "the earned income tax credit calculated and allowed pursuant to this subsection". That is the New York State EIC of 606(d), after the household-credit reduction in (d)(1)(ii), not the federal EITC. No payment is issued below $25. The new formula (ny_eitc x 0.25, zeroed below the new $25 supplemental_minimum_payment) matches the statute and the Tax Department's guidance. It is vectorized, has no dependency cycle, and leaves every year other than 2021 at 0. I hand-checked all 14 expectations in the rewritten test file, and they are right. CI is 29/29 green at the head, and the branch merges cleanly with main.

Two items are open. The PR body has no axiom line, and rulespec-us has no module or issue for 606(d)(8). The second item is older than this PR: two later-year IT-201 instruction references on the parameter the PR rewrites don't show the 2021 payment, and one of them anchors to the wrong page.

Critical (must fix)

None.

Should address

1. The PR body has no axiom line.
This is a policy fix by staff, so CLAUDE.md requires axiom: <legal id> encoded-correct | <rulespec PR> encoded | <rulespec issue> queued | n/a: <reason> (axiom: needed is not available to staff).

• encoded-correct is not possible. I checked rulespec-us main at 1aaca12ed (2026-10-22). It has no module for N.Y. Tax Law 606 at all: the us-ny/statutes/TAX/ modules are 601, 601-A, 611, 613, 614, 616-618, 620-A, 621 and 672-675. That leaves neither the 606(d) EIC nor (d)(8).
• No issue exists yet. No open issue covers 606(d)(8): searches for "606(d)", "supplemental earned income", "New York EIC" and "NY EITC" found none. The nearby Update Oregon tax parameters for 2022 #1831 covers the household credit, not this provision.
• Corpus. The corpus already holds section 606 as the single row us-ny/statute/TAX/606 (see rulespec-us#1531 and What program participation can affect one's eligibility for the Affordable Connectivity Program? #1452).
• Fix. Run the signed encoder for us-ny/statutes/TAX/606/d/8, together with the 606(d)(1) base it imports, and add axiom: <rulespec-us PR> encoded. If the encoder is blocked, file a dispatch-ready, pe-parity-labelled issue modelled on rulespec-us#1467, record the blocker in it, and add axiom: TheAxiomFoundation/rulespec-us#<n> queued. The issue should contain:
  • Module path and citation: us-ny/statutes/TAX/606/d/8, corpus row us-ny/statute/TAX/606.
  • Verbatim law: the whole (d)(8) text, quoted below, including its timely-filing sentence.
  • Required outputs: the payment equals 0.25 x the 606(d) credit after the household-credit reduction, is 0 when below $25, applies to residents only, and exists for tax year 2021 only.
  • Companion tests from external sources:
    • The Tax Department's example: line 65 of $300 gives $75.
    • A credit under $100 gives no payment.
    • TAXSIM v39 of 805.94 for the policyengine-taxsim#1185 household gives 0.25 x 805.94 = 201.49.

2. supplemental_match.yaml lines 17-20: two references don't support the 2021 value, and one anchors to the wrong page.
These references predate the PR. The PR rewrites this parameter's description and adds two good references to the same list, so it is the place to fix them.

• The 2023 instructions. "New York Instructions for Form IT-201 Line 65" links the 2023 HTML instructions. Line 65 there covers the 2023 NYS EIC ("Did you claim the federal earned income credit for 2023..."), and the page never mentions a 25% supplemental payment.
• The 2025 instructions. "2025 Form IT-201-I Instructions" links it201i.pdf#page=27. File page 27 of that PDF is "Instructions for Form IT-195, Allocation of Refund". Line 65 is on file page 19, and the document never mentions a supplemental payment.
• Fix: delete both entries. The value is now supported by the statute link, the Part NN bill page and the archived Tax Department page.

Suggestions

1. Say that the timely-filing condition is assumed met.
   • The variable docs and the test-file header quote (d)(8) with an ellipsis that drops its second sentence: "Such payment will be allowed to resident taxpayers who timely filed returns pursuant to section six hundred fifty-one of this article, determined with regard to extensions pursuant to section six hundred fifty-seven of this article." The PR body quote drops it too.
   • The Tax Department page says the same: "You must also have filed your New York State income tax return (Form IT-201) by April 18, 2022, or had a valid extension of time to file."
   • PolicyEngine can't observe filing dates, so treating the condition as met is reasonable. A one-line note next to the existing (d-1)(9) note in ny_supplemental_eitc.py (lines 18-23) would record that choice.
2. Reword the first sentence of the PR body. "The 2021 New York supplemental EITC payment was 25% of the federal EITC" reads as a statement about the law. "PolicyEngine computed..." would be clearer.
3. Optional. supplemental_minimum_payment carries $25 forward indefinitely. That has no effect while supplemental_match is 0 from 2022. Ending it in 2022 would simply mirror the one-year provision. It is fine as is.

Verified correct

Law

• Statute. S.8009-C/A.9009-C, Part NN section 2, is on file page 88 of the bill PDF (printed page 88), so #page=88 is right. It reads: "(8) For tax year two thousand twenty-one, the commissioner shall issue a payment of a supplemental earned income tax credit to resident taxpayers in the amount of twenty-five percent of the earned income tax credit calculated and allowed pursuant to this subsection. ... Provided, however, that no payment shall be issued if it is less than twenty-five dollars."
• Base. Tax Law 606(d)(1) defines that credit as "(i) the applicable percentage of the earned income credit allowed under section thirty-two ... (ii) reduced by the credit permitted under subsection (b)". So the base is the NYS EIC after the household credit, which is exactly ny_eitc.
• Tax Department guidance. The archived 2022-10-20 page says: "Multiply the amount on line 65 (or 66) by 0.25". Its example is "$300 X 0.25 = $75", and it says to stop if line 65 is "less than $100". Line 65 of the 2021 IT-201 is the NYS EIC.
• Noncustodial parent payment. Part NN section 3 adds 606(d-1)(9), the matching 25% payment on the enhanced (noncustodial parent) EIC. That credit is not modeled, and the code comment and PR body document the deferral.
• NYC. Part NN supplements only the State credits (606(c-1), (d) and (d-1)). There is no NYC EIC supplement, and no NYC variable reads ny_supplemental_eitc.
• Payment year. The Tax Department mailed the checks starting in October 2022, and most went out by October 31, 2022. The model books the payment in tax year 2021 in ny_refundable_credits. That is the year the statute names, and it is the same treatment as the companion 606(c-1)(4) supplemental Empire State child credit (ny_additional_ctc, in the 2021 list). This treatment was already in place and the PR doesn't change it.

Code

• where(payment < minimum, 0, payment) is vectorized, and exactly $25 is paid, as "less than twenty-five dollars" requires.
• defined_for = StateCode.NY, and no state-gated enum or int key is used as a parameter key, so the NH Add New Hampshire state supplementation for 2026 #10156 pattern does not apply.
• ny_eitc reads ny_income_tax_before_credits and ny_household_credit, not the refundable-credit list, so there is no cycle.
• Callers (refundable.yaml, state_eitcs.yaml and the injected-value case in taxsim_state_eitc.yaml) are unaffected.
• supplemental_match is 0 before 2021 (backdated) and from 2022, so other years stay at 0.

Tests (14 expectations hand-checked)

• $300 x 0.25 = 75. $100 x 0.25 = 25, which is paid. $99 x 0.25 = 24.75 < 25, which gives 0. eitc 1,000 with ny_eitc 0 gives 0, so the federal EITC is ignored.
• 2018, 2020 and 2022 give 0 because the match is 0.
• 2021 head of household with one child earning $24,097.71:
  • Federal EITC. Rev. Proc. 2020-45 section 3.07 (checked) gives a $3,618 maximum and a $19,520 threshold. The credit is 3,618 - 0.1598 x 4,577.71 = 2,886.48. NY's pre-ARPA pin restores the 2021 indexed amounts, so the NY branch also gets 2,886.48.
  • Household credit. 606(b)(2)(B) (checked) covers married, head-of-household and surviving-spouse filers. For "Over $22,000 but not over $25,000" it gives $50 + $10 x (2 - 1) = $60, below the tax of 0.04 x (24,097.71 - 11,200 - 1,000) = 475.91.
  • NY EIC and payment. 0.30 x 2,886.48 - 60 = 805.94, and 0.25 x 805.9446 = 201.49, within the 0.01 margin.
• 2021 childless filer, age 22, earning $8,000:
  • The ARPA federal credit is 0.153 x 8,000 = 1,224, below the $9,820 earned income amount and the $11,610 threshold.
  • NY's 2021 decoupling applies the pre-ARPA minimum age of 25, so ny_eitc is 0 and the payment is 0.

Other checks

• Merged tree. Main has since changed ny_eitc, ny_household_gross_income and ny_household_credit_potential to read ny_recomputed_federal_agi (Take the 2020 charitable deduction for non-itemizers above the line #10186). That differs from federal AGI only when there is a 2020 non-itemizer charitable deduction, so none of the PR's cases changes.
• Source-conflict ratchet. None of the added comments matches the conflict regex, no touched file is in KNOWN_UNMARKED, and the head (2026-10-21 16:32 UTC) already contains the ratchet and the Count the FL and SD LIHEAP comments in the source-conflict ratchet baseline #10334 fix.
• Changelog. changelog.d/ny-supplemental-eitc-state-base.fixed.md is a top-level fragment with the right type.
• References. The variable's reference tuple has no titles and one #page= anchor. The new parameter's description and label follow the house style.

Axiom line assessment

The line is missing, which is SHOULD 1. rulespec-us main has no N.Y. Tax Law 606 module and no issue covering (d)(8), so the right line is axiom: <rulespec-us PR> encoded after an encoder run for us-ny/statutes/TAX/606/d/8. If the encoder is blocked, use axiom: TheAxiomFoundation/rulespec-us#<n> queued with an open, pe-parity-labelled, dispatch-ready issue as described above.

CI status

29/29 checks pass at head fd4e5ee9a8 per gh pr checks 10353. That covers the baseline and contrib state shards, PR validation, microsimulation, the Python suites and codecov. Nothing is pending.

Branch status

The branch is 2 ahead and 20 behind main. git merge-tree --write-tree PolicyEngine/main fd4e5ee9a8 gives a clean tree (0f31f15bcb) with no conflicts. No file under policyengine_us/tests/policy/baseline/partners/** is touched.

Verdict: REQUEST_CHANGES

[DTrim99]

The law is right. Tax Law 606(d)(8) (Part NN s.2) pays 25% of the 606(d) NYS EIC after the household credit, with a $25 minimum, and all 14 expectations hand-check. Two should-address items: (1) there's no axiom line, and rulespec-us has no 606(d)(8) module or issue, so please encode it or file a dispatch-ready pe-parity issue and mark it queued; (2) the 2023/2025 IT-201 references in supplemental_match.yaml don't show the 2021 payment (and #page=27 is the IT-195 page), so please delete them. Three suggestions. Full report in the comment above.

[DTrim99]

PR Review (round 2): Base the 2021 New York supplemental EITC payment on the New York EIC

PR #10353 (author: PavelMakarchuk), head 15818b376a. Our round 1 reviewed fd4e5ee9a8 and requested changes (0 critical, 2 should, 3 suggestions). Since then the author has merged main (6ae538a8f8, with no hand-resolved conflicts) and pushed one commit, 15818b376a, which touches 3 files:

• it deletes the 2023 and 2025 IT-201 references from supplemental_match.yaml;
• it adds a timely-filing note to the variable and to the test-file header.

The PR body now quotes all of 606(d)(8), opens with "PolicyEngine computed…", and carries axiom: TheAxiomFoundation/rulespec-us#1868 queued. No partner test file changes.

Summary

• Both should items are fixed.
  • S1. rulespec-us#1868 is OPEN, labelled pe-parity and dispatch-ready on the Add AMT parameters for 2020-2023 #1467 model. It gives the module path and corpus row, quotes 606(d)(8), (d)(1) and the Tax Department page, defines the required output, and has ten companion tests from the statute, the Tax Department page and TAXSIM. It records the billed-run blocker and the missing (d)(1) and (b) base modules.
  • S2. The two later-year IT-201 references are gone.
• Suggestions. G1 (timely filing) and G2 (the body wording) are fixed. G3 was optional and is unchanged, which is fine.
• No expectation changed. In the test file, the commit adds only two comment lines. The 9 cases and 14 expectations I hand-checked in round 1 stand.
• main. The only NY or EITC change on main since round 1 is Take the 2020 charitable deduction for non-itemizers above the line #10186, which round 1 already found has no effect on these cases.
• New findings: none.
• CI: 16 pass, 4 pending and 0 failed at 22:29 UTC. The states shards that hold the NY test file passed.
• Branch: 4 ahead and 0 behind main, and it merges cleanly.

Prior findings

Finding	Status	Evidence
S1. No axiom line	Fixed	axiom: TheAxiomFoundation/rulespec-us#1868 queued. #1868 is OPEN, labelled pe-parity, created 2026-10-22 19:05 UTC. It is dispatch-ready, and its contents match the head (see Axiom).
S2. supplemental_match.yaml: the 2023 and 2025 IT-201 references don't show the 2021 payment, and the 2025 link opened IT-195	Fixed	Both entries are deleted. The remaining references are the Tax Law 606 page (with a # (d)(8) comment), the S.8009-C bill at #page=88 (Part NN §2) and the archived Tax Department page. These are the same three that support supplemental_minimum_payment.yaml.
G1. Say that the timely-filing condition is assumed met	Fixed	ny_supplemental_eitc.py now says: "The payment also requires a timely filed return (with extensions); filing dates are not modeled, so that condition is assumed met." The test header adds: "The omitted sentence limits the payment to returns filed on time (with extensions). Filing dates are not modeled, so the tests assume it is met." The PR body quotes the full second sentence.
G2. Reword the PR body's first sentence	Fixed	It now reads: "PolicyEngine computed the 2021 New York supplemental EITC payment as 25% of the federal EITC. The law pays 25% of the New York State EIC, with a $25 minimum."
G3. Optional: end supplemental_minimum_payment in 2022	Not adopted (optional)	It is unchanged (2021-01-01: 25). This has no effect while supplemental_match is 0 from 2022, as round 1 noted.

New findings

Critical: none. Should address: none. Suggestions: none.

Verified

• No changed expectations.
  • git diff fd4e5ee9a8 15818b376a on the PR's files shows −4 reference lines in supplemental_match.yaml, +2 comment lines in the test file and +3/−1 comment lines in the variable.
  • The formula (ny_eitc × supplemental_match, set to 0 when below supplemental_minimum_payment) and all 9 test cases are byte-identical apart from those comments.
• Round-1 hand-checks still hold at this head:
  • The Tax Department example: $300 × 0.25 = 75.
  • The boundary: $100 → 25 (paid), and $99 → 24.75 < 25 → 0.
  • A federal eitc of 1,000 with ny_eitc 0 gives 0.
  • 2018, 2020 and 2022 give 0.
  • The policyengine-taxsim#1185 household: 0.30 × 2,886.48 − 60 = 805.94, and 0.25 × 805.94 = 201.49.
  • The 2021 childless filer aged 22 gives 0 under NY's pre-ARPA minimum age.
• Changes on main since round 1. Between round 1's merge base a6fafb06c2 and current main, the only commit touching NY tax or the federal EITC is Take the 2020 charitable deduction for non-itemizers above the line #10186 (ny_recomputed_federal_agi). It differs from federal AGI only when there is a 2020 non-itemizer charitable deduction, so none of the cases changes.
• Tax Department page. I re-fetched the archived 2022-10-20 page, and it confirms two Add formula for ca_is_qualifying_child_for_caleitc variable #1868 companion rows:
  • Case 9: "You must also have filed your New York State income tax return (Form IT-201) by April 18, 2022, or had a valid extension of time to file."
  • Case 4: "if your 2021 New York State earned income credit amount was $80, … your check will only include the payment for the Empire State child credit."
• Source-conflict ratchet (Tie source-conflict markers to the register shared with Axiom #10287). The new comments say "assumed met" and "assume it is met", with no conflict wording. test_conflict_sounding_comments_do_not_grow passed in Rest Python shard 1 on dac20c74, the merge of this head into 2bc4ccc970, which is current main.
• Known main-caused failure: not applicable. The run was created 2026-10-22 19:25 UTC.
• Housekeeping. changelog.d/ny-supplemental-eitc-state-base.fixed.md is unchanged and correct. No partner files change.

Axiom

Valid: axiom: TheAxiomFoundation/rulespec-us#1868 queued.

• State: OPEN, labelled pe-parity.
• Module and corpus. The proposed module is us-ny/statutes/TAX/606/d/8.yaml, with companion .test.yaml. The corpus row is us-ny/statute/TAX/606 (manifest us-ny-tax-law-article-22-personal-income-tax.yaml). It plans imports for 606(d)(1) and 606(b); 606(b) is queued in Update Oregon tax parameters for 2022 #1831.
• Verbatim law. It quotes all of 606(d)(8), including the timely-filing sentence, plus 606(d)(1) and the Tax Department page.
• Required output. 0.25 × the 606(d) credit after the household-credit reduction, for tax year 2021 only, residents only and timely filers only. The payment is 0 below $25, and exactly $25 is paid.
• Companion tests. There are 10, from the statute, the Tax Department page and TAXSIM v25/v39, not from PolicyEngine output. They include the MD ACA subsidies #1185 household ($201.49), plus nonresident and late-filer rows that PE-US does not model. The issue keeps those as module inputs.
• Blockers recorded. No billed signed-encoder run is approved, the (d)(1) base has no module, and (b) is queued in Update Oregon tax parameters for 2022 #1831. It includes a paste-ready review_finding.
• Matches the head. It describes the current formula and parameters and the 9-case test file. It also states the "treats the condition as met" choice that this head's commit records.

CI

16 pass, 4 pending and 0 failed per gh pr checks 10353, re-checked at 22:29 UTC on 2026-10-22. Run 39839925918 (pull_request, created 19:25 UTC) tests head 15818b376a merged into 2bc4ccc970, which is current main.

• Passed:
  • Baseline: household, irs, rest-a, ssa-usda and states shards 1–4. The states shards hold ny_supplemental_eitc.yaml.
  • Python: Rest (Python, shard-1 + variables) and Microsimulation.
  • Other: Household API Partners, PR validation, Package and compatibility, Quick Feedback, and codecov patch and project.
• Pending:
  • Baseline contrib-hhs, reform and rest-b;
  • Python Rest (Python + variables).
• Locally: I ran no tests or probes.

Branch

• Position: 4 commits ahead of main (2bc4ccc970) and 0 behind. The merge base is 2bc4ccc970.
• Merge: clean. git merge-tree --write-tree PolicyEngine/main 15818b376a exits 0 (tree 66e0b473cf).
• Partners: no file under policyengine_us/tests/policy/baseline/partners/** changes.

0 critical, 0 should and 0 suggestions are open at this head. Let CI finish green before merging.

Verdict: APPROVE

[DTrim99]

Round 2: both should items are fixed. rulespec-us#1868 is open, pe-parity labelled, dispatch-ready and records its blockers, and the off-target IT-201 references are gone. No expectation changed. CI was still finishing, so please let it go green before merging. Full report in the comment above.