Bill Text: NY A09795 | 2017-2018 | General Assembly | Introduced

---

Bill Title: Relates to implementing a union dues tax credit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-02-09 - referred to ways and means [A09795 Detail]

Download: New_York-2017-A09795-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          9795
                   IN ASSEMBLY
                                    February 9, 2018
                                       ___________
        Introduced by M. of A. ABBATE -- read once and referred to the Committee
          on Ways and Means
        AN  ACT  to  amend the tax law, in relation to implementing a union dues
          tax credit
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  606  of  the  tax law is amended by adding a new
     2  subsection (iii) to read as follows:
     3    (iii) Union dues tax credit. (1)  Allowance  of  credit.  For  taxable
     4  years  beginning  on  and after January first, two thousand eighteen and
     5  before January first, two thousand twenty-six, a resident taxpayer shall
     6  be allowed a credit, to be computed as provided in  paragraph  three  of
     7  this  subsection,  against the tax imposed by this article for allowable
     8  union dues.
     9    (2) Allowable dues. The term "allowable union  dues"  shall  mean  the
    10  full  amount  of  agency  shop  fees and union dues paid by the taxpayer
    11  during the taxable year that would have been deductible in  the  taxable
    12  year  ending December thirty-first, two thousand seventeen under section
    13  187 of the internal  revenue  code  without  regard  to  the  limitation
    14  imposed by section 67 of the internal revenue code.
    15    (3)  Computation of credit. The amount of credit allowable pursuant to
    16  this subsection shall equal the allowable union dues multiplied  by  the
    17  rate  of  tax imposed on the taxpayer's New York taxable income pursuant
    18  to section six hundred one of this part.
    19    (4) Refunds. The credit under this subsection shall be allowed against
    20  the taxes imposed by this article for the taxable year  reduced  by  the
    21  credits  permitted  by this article. If the credit exceeds the tax as so
    22  reduced, the taxpayer may receive, and the  comptroller,  subject  to  a
    23  certificate  of  the  commissioner, shall pay as an overpayment, without
    24  interest, the amount of such excess.
    25    § 2. Paragraph 5 of subsection (d) of section 615 of the tax  law,  as
    26  added  by  section  1  of part OOO of chapter 59 of the laws of 2017, is
    27  amended to read as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14102-03-8
        A. 9795                             2
     1    (5) for taxable years beginning before  January  first,  two  thousand
     2  eighteen  and  after December thirty-first, two thousand twenty-six, the
     3  full amount of union dues paid during the taxable year if  the  taxpayer
     4  was  not  allowed federal miscellaneous itemized deductions by operation
     5  of  section 67 of the internal revenue code. If any amount of union dues
     6  representing federal miscellaneous itemized deductions was allowed, then
     7  the amount allowed as a New York itemized deduction for union dues  paid
     8  shall  be  a percentage of the union dues disallowed by the operation of
     9  section 67 of the internal revenue code computed as follows. The  amount
    10  allowed  as a New York itemized deduction shall be computed by multiply-
    11  ing the total union dues paid by the taxpayer during the taxable year by
    12  a percentage determined by subtracting from one, a  fraction  where  the
    13  numerator  is the amount of federal miscellaneous deductions allowed and
    14  the  denominator  is  the  aggregate  federal   miscellaneous   itemized
    15  deductions  before application of the two-percent floor under section 67
    16  of the internal revenue code. For the purposes of this paragraph,  union
    17  dues  are  those  amounts that [are] would have been deductible as union
    18  dues and agency shop fees under section  162  of  the  internal  revenue
    19  code,  as it was in effect prior to the enactment of Public Law No. 115-
    20  97.
    21    § 3. This act shall take effect immediately and shall apply to taxable
    22  years beginning on and after January 1, 2018.