Bill Text: NY S08685 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes a tax credit for rent paid on the personal residence of certain taxpayers who lease the taxpayer's primary residence during the taxable year and who pay rent with respect to such residence in excess of thirty percent of such taxpayer's gross income for such taxable year whose income is less than fifty percent of the area median income.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-29 - REFERRED TO BUDGET AND REVENUE [S08685 Detail]

Download: New_York-2023-S08685-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8685

                    IN SENATE

                                    February 29, 2024
                                       ___________

        Introduced by Sen. SEPULVEDA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Budget and Revenue

        AN  ACT  to  amend the tax law, in relation to establishing a tax credit
          for rent paid on the personal residence of certain taxpayers

          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 (bbb) to read as follows:
     3    (bbb) Rent relief credit. (1) Allowance of credit. A qualified taxpay-
     4  er shall be allowed a credit to be computed as provided in paragraph two
     5  of this subsection against the tax imposed by this article.
     6    (2) Computation of credit.  The credit allowed under  this  subsection
     7  shall  be  one  hundred  percent  of the excess of thirty percent of the
     8  taxpayer's gross income such taxpayer pays in rent for such taxable year
     9  for taxpayers whose income is less than fifty percent of the area median
    10  income.
    11    (3) Advance payments. (A) The commissioner shall establish a mechanism
    12  by which a qualified taxpayer may apply for an advance  payment  of  the
    13  credit authorized by this subsection, provided that:
    14    (i)  A qualified taxpayer who fails to apply for an advance payment of
    15  such credit by the date on which the commissioner  requires,  may  apply
    16  for  and receive such credit in the manner prescribed by the commission-
    17  er, provided that such application shall be made within three years from
    18  the time that a return for the taxable year would have had to  be  filed
    19  pursuant  to section six hundred fifty-one of this article. If approved,
    20  such payment shall be  issued  as  soon  as  is  practicable  after  the
    21  submission of the application but shall not be subject to the processing
    22  schedule prescribed by subparagraph (B) of this paragraph, and
    23    (ii)  A  qualified  taxpayer who has applied for an advance payment of
    24  such credit in a taxable year  may  continue  to  receive  such  advance
    25  payments in future taxable years without reapplying as long as he or she
    26  remains eligible therefor.
    27    (B)  The commissioner shall determine the eligibility of taxpayers for
    28  this credit utilizing  the  information  available  to  him  or  her  as

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10472-01-3
        S. 8685                             2

     1  obtained  from the applications submitted and from such other sources as
     2  the commissioner deems reliable and  appropriate.  For  those  taxpayers
     3  whom  the  commissioner  has  determined  eligible  for this credit, the
     4  commissioner  shall  advance  a  payment  of up to one half of the total
     5  amount of the total credit owed.
     6    (C) A taxpayer who has failed to receive an advance payment that he or
     7  she believes was due to him or her,  or  who  has  received  an  advance
     8  payment  that he or she believes is less than the amount that was due to
     9  him or her, may request payment of the claimed deficiency  in  a  manner
    10  prescribed by the commissioner.
    11    (D)  An advance payment of credit provided pursuant to this subsection
    12  that exceeds the taxpayer's qualifying taxes for that taxable year shall
    13  be added back as tax on the income tax return for that taxable year.
    14    (E) If the commissioner determines after issuing  an  advance  payment
    15  that  it was issued in an excessive amount or to an ineligible or incor-
    16  rect party, the commissioner shall be empowered to utilize  any  of  the
    17  procedures  for  collection,  levy  and  lien of personal income tax set
    18  forth in this article, any other relevant procedures  referenced  within
    19  the  provisions of this article, and any other law as may be applicable,
    20  to recoup the improperly issued amount.
    21    (4) Limitation on amount of credit. For the  purposes  of  determining
    22  the  amount of the credit allowed under this subsection, with respect to
    23  a primary residence for the taxable year, there shall not be taken  into
    24  account  rent  in excess of an amount equal to one hundred fifty percent
    25  of the fair market rent, including the utility allowance, applicable  to
    26  such  residence,  as most recently published, as of the beginning of the
    27  taxable year, by the United  States  department  of  housing  and  urban
    28  development.
    29    (5)  Application  of credit. If the amount of the credit allowed under
    30  this subsection for any taxable year shall exceed the taxpayer's tax for
    31  such year, the excess shall be treated as an overpayment of  tax  to  be
    32  credited  or  refunded  in accordance with the provisions of section six
    33  hundred eighty-six of this article, provided, however, that no  interest
    34  shall be paid thereon.
    35    (6)  Administration.  The  commissioner  shall  have  the authority to
    36  promulgate such rules and regulations as may be necessary for the  proc-
    37  essing, determination and granting of credits under this subsection.
    38    (7) Definitions. As used in this subsection, the following terms shall
    39  have the following meanings:
    40    (A) "Qualified taxpayer" shall mean an individual who leases the indi-
    41  vidual's  primary  residence during the taxable year, who pays rent with
    42  respect to such residence and whose income is less than fifty percent of
    43  the area median income.
    44    (B) "Rent" shall include any amount paid for utilities.
    45    (C) "Gross income" shall mean the federal adjusted gross income  of  a
    46  taxpayer.
    47    §  2. This act shall take effect on the first of January next succeed-
    48  ing the date on which it shall have become a law,  and  shall  apply  to
    49  taxable years commencing on and after such date.  Effective immediately,
    50  the  addition,  amendment and/or repeal of any rule or regulation neces-
    51  sary for the implementation of  this  act  on  its  effective  date  are
    52  authorized to be made and completed on or before such effective date.