A07495 Summary:

BILL NO    A07495 

SAME AS    SAME AS S04104

SPONSOR    Crespo

COSPNSR    

MLTSPNSR   

Amd S606, Tax L

Establishes a senior citizen utility circuit breaker personal income tax
credit.
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A07495 Actions:

BILL NO    A07495 

05/13/2015 referred to ways and means
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A07495 Votes:

There are no votes for this bill in this legislative session.
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A07495 Memo:

BILL NUMBER:A7495

TITLE OF BILL:

An act to amend the tax law, in relation to establishing a senior utili-
ty circuit breaker personal income tax credit

PURPOSE:

Creates a circuit breaker refundable tax credit to provide relief to
seniors that pay a high percentage of their income in utility costs.

SUMMARY OF PROVISIONS:

Section one of the bill amends section 606 of the tax law by adding a
new subdivision (ccc). Paragraph one of the new subdivision defines
eligible taxpayer as individuals over 65 years of age with gross incomes
of $150,000 or less. It defines the eligible expenses as including elec-
tricity, heating, residential gas, water and sewer charges, and tele-
phone services, with the exception of cell phone services unless they
are the sole means by which the taxpayer receives telephonic services.

Paragraph two of the new subdivision explains the computation of the
credit. The credit shall be equal to one half of those eligible expenses
which exceed seven percent of a filers' income. The credit will deduct
any funds received by an individual pursuant to the low-income home
energy assistance program.

Paragraph three of the new subdivision states that any amount of credit
allowed under this subsection that exceeds the qualified taxpayers tax
for that year shall be treated as an overpayment and refunded.

Section two of the bill sets an immediate effective date.

JUSTIFICATION:

New Yorkers currently pay the highest electric bills in the continental
United States and the second highest in the nation, 60% above the
national average. These circumstances are problematic for all New York-
ers, but especially problematic for senior New Yorkers. Seniors' bills
in the Consolidated Edison service territory of NYC have increased by
20% or more over the past two years, and are paying 102% more for their
average electric bill than the average customer across the nation.

Most seniors rely on fixed incomes, receiving on average $1,234 in
Social Security benefits and $516.90 in Supplemental Security Income in
NY. 30% of older households have total incomes of less than $20,000, and
they typically experience the greatest energy burden.  Unfortunately,
the federal government's Home Energy Assistance Program (HEAP) is down.
Throughout the decade, the average HEAP federal block grant amount has
remained well below average heating costs faced by older consumers. This

means that even our neediest seniors are not getting the support they
need to help pay for New York's high utility costs.

This proposal is meant to provide relief that is based on the income
burden a household faces. This senior utility circuit breaker would
deliver relief to any senior household that pays more than seven percent
of their annual income in utilities in the form of a refundable tax
credit. This proposal would provide a senior household with relief equal
to half of their expenses above the seven percent threshold. For the
purposes of this proposal, covered expenses would include electricity
charges, gas, heating charges, including the costs of any fuels, water
and sewer charges, internet, and telephone charges excluding cell phone
service. By linking this relief to income, we can ensure that the bene-
fits are provided to those that need it most.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

Cost to be determined.

EFFECTIVE DATE:

This act shall take effect immediately
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A07495 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         7495

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                     May 13, 2015
                                      ___________

       Introduced by M. of A. CRESPO -- read once and referred to the Committee
         on Ways and Means

       AN ACT to amend the tax law, in relation to establishing a senior utili-
         ty circuit breaker personal income tax 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  subdivision (ccc) to read as follows:
    3    (CCC) SENIOR UTILITY CIRCUIT BREAKER TAX CREDIT. (1) DEFINITIONS.  FOR
    4  THE PURPOSES OF THIS SUBSECTION:
    5    (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL, MARRIED OR HEAD
    6  OF HOUSEHOLD TAXPAYER WHO IS OVER SIXTY-FIVE YEARS OF AGE, WITH A HOUSE-
    7  HOLD GROSS INCOME OF ONE HUNDRED FIFTY THOUSAND DOLLARS OR LESS.
    8    (B) "HOUSEHOLD" OR  "MEMBERS  OF  THE  HOUSEHOLD"  MEANS  A  QUALIFIED
    9  TAXPAYER  AND  ALL  OTHER PERSONS, NOT NECESSARILY RELATED, WHO HAVE THE
   10  SAME RESIDENCE AND SHARE ITS FURNISHINGS, FACILITIES AND ACCOMMODATIONS.
   11  SUCH TERMS SHALL NOT INCLUDE A TENANT, SUBTENANT, ROOMER OR BOARDER  WHO
   12  IS  NOT  RELATED  TO  THE  QUALIFIED TAXPAYER IN ANY DEGREE SPECIFIED IN
   13  PARAGRAPHS ONE THROUGH EIGHT OF SUBSECTION (A) OF  SECTION  ONE  HUNDRED
   14  FIFTY-TWO OF THE INTERNAL REVENUE CODE. PROVIDED, HOWEVER, NO PERSON MAY
   15  BE A MEMBER OF MORE THAN ONE HOUSEHOLD AT ONE TIME.
   16    (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
   17  OF  ALL  MEMBERS  OF  THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
   18  FEDERAL INCOME TAX PURPOSES, OR WHICH  WOULD  BE  REPORTED  AS  ADJUSTED
   19  GROSS  INCOME  IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
   20  WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX  HUNDRED  TWELVE
   21  OF  THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
   22  SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
   23  ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT;  EARNED  INCOME  FROM  SOURCES
   24  WITHOUT  THE  UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS INCOME BY
   25  SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT  MONEY

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09183-01-5
       A. 7495                             2

    1  NOT  INCLUDED  IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE STRIKE BENEFITS;
    2  SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF  ANY  PENSION
    3  OR  ANNUITY  BENEFITS  TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
    4  INCOME  (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
    5  ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT  AND  VETER-
    6  ANS'  DISABILITY  PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
    7  OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES,  PUBLIC  CORPORATIONS,  OR
    8  POLITICAL  SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
    9  TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS'  COMPEN-
   10  SATION;  THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
   11  CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
   12  NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER  OR  MEMBERS
   13  OF HIS HOUSEHOLD. HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE SURPLUS FOODS
   14  OR OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS BECAUSE OF THEIR
   15  STATUS  AS  VICTIMS  OF  NAZI  PERSECUTION  AS  DEFINED IN P.L. 103-286.
   16  PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL ONLY  INCLUDE  ALL  SUCH
   17  INCOME  RECEIVED  BY  ALL MEMBERS OF THE HOUSEHOLD WHILE MEMBERS OF SUCH
   18  HOUSEHOLD.
   19    (D) "RESIDENCE" MEANS A DWELLING IN THIS STATE, WHETHER OWNED OR RENT-
   20  ED.
   21    (E) "ELIGIBLE EXPENSES" MEANS PAYMENTS MADE BY  A  QUALIFIED  TAXPAYER
   22  FOR  THE  FOLLOWING  GOODS AND SERVICES DELIVERED AND USED AT HIS OR HER
   23  PRIMARY RESIDENCE:
   24    (I) RESIDENTIAL GAS, ELECTRIC  AND  STEAM  UTILITY  SERVICE  WHICH  IS
   25  SUBJECT TO THE PROVISIONS OF ARTICLE TWO OF THE PUBLIC SERVICE LAW;
   26    (II) RESIDENTIAL WATER AND SEWER SERVICE;
   27    (III)  HOME  HEATING  FUEL,  WHICH SHALL INCLUDE FUEL OIL, COAL, WOOD,
   28  PROPANE, NATURAL GAS, ELECTRICITY, STEAM, KEROSENE AND  ANY  OTHER  FUEL
   29  WHEN USED FOR RESIDENTIAL HEATING PURPOSES; AND
   30    (IV) TELECOMMUNICATIONS SERVICES AS DEFINED IN PARAGRAPH (G) OF SUBDI-
   31  VISION  ONE  OF  SECTION  ONE  HUNDRED EIGHTY-SIX-E OF THIS CHAPTER, AND
   32  SHALL NOT INCLUDE WIRELESS COMMUNICATIONS SERVICE, AS DEFINED BY  SUBDI-
   33  VISION  TEN  OF SECTION THREE HUNDRED ONE OF THE COUNTY LAW, UNLESS SUCH
   34  WIRELESS SERVICE IS THE ONLY  MEANS  BY  WHICH  THE  QUALIFIED  TAXPAYER
   35  RECEIVES TELEPHONIC SERVICES.
   36    (2)  COMPUTATION  OF  CREDIT. FOR TAXABLE YEARS BEGINNING ON AND AFTER
   37  JANUARY FIRST, TWO THOUSAND  FIFTEEN,  A  QUALIFIED  TAXPAYER  SHALL  BE
   38  ALLOWED  A  CREDIT, TO BE CREDITED AGAINST THE TAX IMPOSED BY THIS ARTI-
   39  CLE. THE AMOUNT OF THE CREDIT SHALL BE ONE-HALF OF ALL ELIGIBLE EXPENSES
   40  PAID BY THE QUALIFIED TAXPAYER TO THE EXTENT SUCH EXPENSES EXCEED  SEVEN
   41  PERCENT  OF THE QUALIFIED TAXPAYER'S HOUSEHOLD GROSS INCOME. SUCH CREDIT
   42  SHALL BE REDUCED BY THE AMOUNT OF ANY MONEYS RECEIVED BY  THE  QUALIFIED
   43  TAXPAYER  PURSUANT  TO  THE  LOW-INCOME  HOME  ENERGY ASSISTANCE PROGRAM
   44  ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN OF THE SOCIAL SERVICES LAW.
   45    (3) OVERPAYMENT. IF THE  AMOUNT  OF  THE  CREDIT  ALLOWED  UNDER  THIS
   46  SUBSECTION  FOR  ANY  TAXABLE YEAR SHALL EXCEED THE QUALIFIED TAXPAYER'S
   47  TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF  TAX
   48  TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH SECTION SIX HUNDRED EIGHT-
   49  Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID
   50  THEREON.
   51    S 2. This act shall take effect immediately.
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