Bill Text: NY S04401 | 2017-2018 | General Assembly | Amended

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Bill Title: Establishes a self-employed taxpayer credit.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-02-06 - PRINT NUMBER 4401A [S04401 Detail]

Download: New_York-2017-S04401-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         4401--A
                               2017-2018 Regular Sessions
                    IN SENATE
                                    February 13, 2017
                                       ___________
        Introduced  by  Sen. TEDISCO -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations -- recommitted to the Committee on Investigations  and
          Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
          committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted to said committee
        AN  ACT  to  amend the tax law, in relation to establishing a tax credit
          for low income individuals subject to the federal self-employment tax
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1. Legislative intent. The legislature recognizes the need to
     2  alleviate the tax burden of low income individual taxpayers whose income
     3  is largely derived from self-employment and therefore affected by feder-
     4  al self-employment taxes to a degree disproportionate with such  taxpay-
     5  ers'  level  of  disposable income. This circumstance hinders many newly
     6  started businesses in the state. Therefore, this act provides  a  state-
     7  level credit to provide relief to these taxpayers.
     8    §  2. Section 606 of the tax law is amended by adding a new subsection
     9  (ccc) to read as follows:
    10    (ccc) Self-employed taxpayer credit.  (1) General. A  qualified  self-
    11  employed  taxpayer  shall be allowed a credit against the tax imposed by
    12  this article equal to twenty-five percent of his or her federal self-em-
    13  ployment tax liability for the year, but not exceeding a maximum  amount
    14  of  five  hundred  dollars,  and  subject to phase-out as provided under
    15  paragraph three of this subsection.
    16    (2) Definition of  "qualified  self-employed  taxpayer".  A  qualified
    17  self-employed  taxpayer  is  an individual taxpayer, whose federal gross
    18  income for the tax year is below forty thousand dollars, and whose busi-
    19  ness income in the year is an amount of at least seventy percent of  his
    20  or her federal gross income. Business entities shall not be qualified.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06364-02-8
        S. 4401--A                          2
     1    (3)  Maximum  credit  phase-out.  The  maximum  allowed credit of five
     2  hundred dollars shall be reduced  dollar  for  dollar  for  each  dollar
     3  beyond  thirty-nine  thousand  five  hundred  dollars  of  federal gross
     4  income, such that the credit is  completely  phased  out  upon  reaching
     5  forty thousand dollars of federal gross income.
     6    § 3. This act shall take effect immediately and shall apply to taxable
     7  years beginning on or after January 1, 2019.