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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

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-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          4401
                               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
        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.
    21    (3) Maximum credit phase-out.  The  maximum  allowed  credit  of  five
    22  hundred  dollars  shall  be  reduced  dollar  for dollar for each dollar
    23  beyond thirty-nine  thousand  five  hundred  dollars  of  federal  gross
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06364-01-7
        S. 4401                             2
     1  income,  such  that  the  credit  is completely phased out upon reaching
     2  forty thousand dollars of federal gross income.
     3    § 3. This act shall take effect immediately and shall apply to taxable
     4  years beginning on or after January 1, 2018.