Bill Text: NY S08685 | 2023-2024 | General Assembly | Introduced
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
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. LBD10472-01-3S. 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.
