Bill Text: NY S05219 | 2019-2020 | General Assembly | Introduced

Bill Title: Establishes a tax credit for the replacement or repair of sewer lateral pipes by homeowners who use the home as their principal residence and have an income of less than two hundred fifty thousand dollars.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-05-14 - REPORTED AND COMMITTED TO FINANCE [S05219 Detail]

Download: New_York-2019-S05219-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                     April 16, 2019
        Introduced  by  Sen. KENNEDY -- 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  sanitary
          sewer lateral pipe replacement or repair 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 (jjj) to read as follows:
     3    (jjj)  Sanitary sewer lateral pipe replacement credit. (1) General. An
     4  individual taxpayer shall be allowed a credit for taxable  years  begin-
     5  ning  on  or  after  January  first, two thousand twenty against the tax
     6  imposed by this article for the costs to repair  or  replace  a  lateral
     7  sanitary sewer pipe, when such repair or replacement is recommended by a
     8  certified plumber or the presiding municipality. The amount of the cred-
     9  it shall be twenty-five percent of the total cost of repair or removal.
    10    (2)  Lateral  repair  and  replacement  costs.  (A) The term "costs of
    11  replacement" includes the cost of an  assessment  from  a  plumber,  any
    12  initial appraisals, labor costs, disposal fees, and cleanup fees; except
    13  any  state  or local sales tax applicable to the services performed. (B)
    14  The term "costs of repair" includes the cost of  an  assessment  from  a
    15  plumber,  any  initial  appraisals,  labor  costs,  disposal  fees,  and
    16  follow-up fees; except any state or local sales tax  applicable  to  the
    17  services.
    18    (3)  Amount  of  credit.  The  aggregate amount of tax credits allowed
    19  under this subsection in any  calendar  year  statewide  shall  be  five
    20  million dollars.
    21    (4)  Lateral repair or replacement for qualified taxpayers. A property
    22  owner who incurs costs for repairing or replacing  lateral  sewer  pipes
    23  must be replacing or repairing the lateral pipe located on a residential
    24  property or mixed-use property, which is:
    25    (A) located in this state;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 5219                             2
     1    (B) owned by the taxpayer;
     2    (C) used by the taxpayer as their principal residence; and
     3    (D)  owned  by  a  taxpayer  with  a household income of less than two
     4  hundred fifty thousand dollars.
     5    (5) When credit allowed. The credit provided for  in  this  subsection
     6  shall  be  allowed  with  respect  to the taxable year, commencing after
     7  January first, two thousand twenty-one in which the  work  is  completed
     8  and paid for.
     9    (6)  Carryover  of credit. If the amount of the credit, and carryovers
    10  of such credit, allowable under this subsection  for  any  taxable  year
    11  shall exceed the taxpayer's tax for such year, such excess amount may be
    12  carried  over  to the five taxable years next following the taxable year
    13  with respect to which the credit is allowed and may be deducted from the
    14  taxpayer's tax for such year or years.
    15    § 2. This act shall take effect January 1, 2021, and  shall  apply  to
    16  taxable years commencing on or after such effective date.