Bill Text: NY A07047 | 2013-2014 | General Assembly | Introduced

---

Bill Title: Establishes a self-employed taxpayer credit.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-01-08 - referred to ways and means [A07047 Detail]

Download: New_York-2013-A07047-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7047
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                    April 30, 2013
                                      ___________
       Introduced  by M. of A. TEDISCO -- read once and referred to the Commit-
         tee on Ways and Means
       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    S 2. Section 606 of the tax law is amended by adding a new  subsection
    9  (ww) to read as follows:
   10    (WW) SELF-EMPLOYED TAXPAYER CREDIT.  (1) GENERAL. A QUALIFIED SELF-EM-
   11  PLOYED  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
   24  INCOME, SUCH THAT THE CREDIT IS  COMPLETELY  PHASED  OUT  UPON  REACHING
   25  FORTY THOUSAND DOLLARS OF FEDERAL GROSS INCOME.
   26    S 3. This act shall take effect immediately and shall apply to taxable
   27  years beginning on or after January 1, 2014.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09418-02-3