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.
STATE OF NEW YORK
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5808
2025-2026 Regular Sessions
IN SENATE
March 3, 2025
___________
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01418-01-5
S. 5808 2
1 payments in future taxable years without reapplying as long as such
2 taxpayer remains eligible therefor.
3 (B) The commissioner shall determine the eligibility of taxpayers for
4 this credit utilizing the information available to such commissioner as
5 obtained from the applications submitted and from such other sources as
6 the commissioner deems reliable and appropriate. For those taxpayers
7 whom the commissioner has determined eligible for this credit, the
8 commissioner shall advance a payment of up to one-half of the total
9 amount of the total credit owed.
10 (C) A taxpayer who has failed to receive an advance payment that such
11 taxpayer believes was due to them, or who has received an advance
12 payment that such taxpayer believes is less than the amount that was due
13 to such taxpayer, may request payment of the claimed deficiency in a
14 manner prescribed by the commissioner.
15 (D) An advance payment of credit provided pursuant to this subsection
16 that exceeds the taxpayer's qualifying taxes for that taxable year shall
17 be added back as tax on the income tax return for that taxable year.
18 (E) If the commissioner determines after issuing an advance payment
19 that it was issued in an excessive amount or to an ineligible or incor-
20 rect party, the commissioner shall be empowered to utilize any of the
21 procedures for collection, levy and lien of personal income tax set
22 forth in this article, any other relevant procedures referenced within
23 the provisions of this article, and any other law as may be applicable,
24 to recoup the improperly issued amount.
25 (4) Limitation on amount of credit. For the purposes of determining
26 the amount of the credit allowed under this subsection, with respect to
27 a primary residence for the taxable year, there shall not be taken into
28 account rent in excess of an amount equal to one hundred fifty percent
29 of the fair market rent, including the utility allowance, applicable to
30 such residence, as most recently published, as of the beginning of the
31 taxable year, by the United States department of housing and urban
32 development.
33 (5) Application of credit. If the amount of the credit allowed under
34 this subsection for any taxable year shall exceed the taxpayer's tax for
35 such year, the excess shall be treated as an overpayment of tax to be
36 credited or refunded in accordance with the provisions of section six
37 hundred eighty-six of this article, provided, however, that no interest
38 shall be paid thereon.
39 (6) Administration. The commissioner shall have the authority to
40 promulgate such rules and regulations as may be necessary for the proc-
41 essing, determination and granting of credits under this subsection.
42 (7) Definitions. As used in this subsection, the following terms shall
43 have the following meanings:
44 (A) "Qualified taxpayer" shall mean an individual who leases the indi-
45 vidual's primary residence during the taxable year, who pays rent with
46 respect to such residence and whose income is less than fifty percent of
47 the area median income.
48 (B) "Rent" shall include any amount paid for utilities.
49 (C) "Gross income" shall mean the federal adjusted gross income of a
50 taxpayer.
51 § 2. This act shall take effect on the first of January next succeed-
52 ing the date on which it shall have become a law, and shall apply to
53 taxable years commencing on and after such date. Effective immediately,
54 the addition, amendment and/or repeal of any rule or regulation neces-
55 sary for the implementation of this act on its effective date are
56 authorized to be made and completed on or before such effective date.
