STATE OF NEW YORK
________________________________________________________________________
6342
2025-2026 Regular Sessions
IN SENATE
March 11, 2025
___________
Introduced by Sen. SANDERS -- 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 renters' and
small homeowners' 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 subsection (b-1) to read as follows:
3 (b-1) Renters' and small homeowners' credit in a city with a popu-
4 lation of one million or more.
5 (1) For the purposes of this subsection:
6 (A) "Qualified taxpayer" means a resident individual who lives in a
7 city with a population of one million or more who has occupied and paid
8 rent for such individual's primary residence in such city for six months
9 or more of the taxable year, is required or chooses to file a return
10 under this article, and (i) is sixty-five years of age or older, (ii) is
11 filing a joint return with a spouse who is sixty-five years of age or
12 older, (iii) is a head of household, (iv) is a married individual filing
13 a joint return with a spouse and has at least one dependent, (v) is a
14 married individual filing a separate return and has at least one depend-
15 ent, or (vi) is a surviving spouse and has at least one dependent. For
16 purposes of this subsection "qualified taxpayer" shall also include the
17 owner of any dwelling with six units or less in a city with a population
18 of one million or more who occupies such dwelling as their primary resi-
19 dence for six months or more of the taxable year and who is required or
20 chooses to file a return under this article. An individual cannot be a
21 qualified taxpayer if such individual is an individual with respect to
22 whom a deduction under subsection (c) of section 151 of the internal
23 revenue code is allowable to another taxpayer for the taxable year or
24 pays rent for such individual's primary residence to a family member
25 sharing the same primary residence. A family member of an individual is
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10007-01-5
S. 6342 2
1 the individual's spouse, sibling, parent, grandparent, child, grand-
2 child, parent's sibling, or parent's sibling's child, related to the
3 individual by blood, marriage or adoption.
4 (B) "Residence" means a dwelling in a city with a population of one
5 million or more and may consist of a part of a multi-dwelling or multi-
6 purpose building including a cooperative or condominium, one, two or
7 three family dwellings and rental units within a single dwelling which
8 are either owner-occupied or rented by a qualified taxpayer. Residence
9 includes a trailer or mobile home, used exclusively for residential
10 purposes and defined as real property pursuant to paragraph (g) of
11 subdivision twelve of section one hundred two of the real property tax
12 law.
13 (2) (A) A qualified taxpayer shall be allowed a credit as provided in
14 this subsection against the taxes imposed by this article reduced by the
15 credits permitted by this article. If the credit exceeds the tax as so
16 reduced for such year under this article, the excess shall be treated as
17 an overpayment of tax to be credited or refunded in accordance with the
18 provisions of section six hundred eighty-six of this article, provided,
19 however, that no interest shall be paid thereon. If a qualified taxpayer
20 is not required to file a return pursuant to section six hundred fifty-
21 one of this article but otherwise qualifies for a credit under this
22 subsection, a claim for a credit may be taken on a return filed with the
23 commissioner within three years from the time that a return would have
24 been required to be filed pursuant to such section had such qualified
25 taxpayer had a taxable year ending on December thirty-first. Returns
26 shall be in such form as prescribed by the commissioner. A qualified
27 taxpayer must provide any information the commissioner deems necessary
28 to determine the credit allowed.
29 (B) If more than one qualified taxpayer pays rent for the same primary
30 residence and has a federal adjusted gross income for which a credit
31 would otherwise be due, each such qualified taxpayer shall divide the
32 base amount of the credit allowed for such taxpayer's income level by
33 the total number of individuals or married couples filing a joint return
34 who are paying the rent, whether or not eligible for a credit, to deter-
35 mine the amount of credit allowed to that qualified taxpayer. Any addi-
36 tional amount of credit determined based on the number of exemptions
37 claimed by such taxpayer shall not be so divided.
38 (C) A qualified taxpayer shall be allowed the credit under this
39 subsection or the credit under subsection (e) of this section, whichever
40 is the higher amount.
41 (3) (A) For any qualified taxpayer who is sixty-five years of age or
42 older with a filing status of single, the amount of the credit allowed
43 pursuant to this paragraph shall be determined in accordance with the
44 following tables:
45 For taxable years beginning in 2025,
46 if federal adjusted gross income is:The credit shall be:
47 $25,000 or less$110
48 Over $25,000 but not over $40,000$90
49 Over $40,000 but not over $50,000$70
50 For taxable years beginning in or
51 after 2026, if federal adjusted gross
52 income is:The credit shall be:
53 $25,000 or less$220
S. 6342 3
1 Over $25,000 but not over $40,000$180
2 Over $40,000 but not over $50,000$140
3 (B) For any other qualified taxpayer, the amount of the credit allowed
4 pursuant to this paragraph shall be determined in accordance with the
5 following tables; provided, however, that a qualified taxpayer who is a
6 married individual filing a separate New York income tax return shall
7 receive one-half of the base amount of the credit plus any additional
8 amount for which such taxpayer would be eligible based on the income and
9 number of exemptions claimed by such taxpayer:
10 For taxable years beginning in 2025,
11 if federal adjusted gross income is:The credit shall be:
12 $25,000 or less$80 plus an amount
13 equal to $35
14 multiplied by a
15 number which is one
16 less than the number
17 of exemptions for
18 which the taxpayer
19 (or in the case
20 of a married couple
21 filing a joint return,
22 taxpayers) is entitled
23 to a deduction for the
24 taxable year for federal
25 income tax purposes
26 under subsections (b)
27 and (c) of section 151
28 of the internal revenue code
29 Over $25,000 but not over $45,000$65 plus an amount
30 equal to $24
31 multiplied by a number
32 which is one less than
33 the number of exemptions
34 for which the taxpayer
35 (or in the case of
36 a married couple filing a
37 joint return, taxpayers)
38 is entitled to a
39 deduction for the taxable
40 year for federal income
41 tax purposes under
42 subsections (b) and (c)
43 of section 151 of the
44 internal revenue code
45 Over $45,000 but not over $65,000$55 plus an amount
46 equal to $12 multiplied
47 by a number which is one
48 less than the number
49 of exemptions for
50 which the taxpayer (or
51 in the case of a married
52 couple filing a joint return,
53 taxpayers) is entitled
S. 6342 4
1 to a deduction for the
2 taxable year for federal
3 income tax purposes under
4 subsections (b) and (c)
5 of section 151 of the
6 internal revenue code
7 Over $65,000 but not over $100,000$45 plus an amount
8 equal to $12 multiplied
9 by a number which is one
10 less than the number
11 of exemptions for which
12 the taxpayer (or in the
13 case of a married couple
14 filing a joint return,
15 taxpayers) is entitled to
16 a deduction for the taxable
17 year for federal income tax
18 purposes under subsections
19 (b) and (c) of section 151
20 of the internal revenue code
21 For taxable years beginning in or
22 after 2026, if federal adjusted gross
23 income is:The credit shall be:
24 $25,000 or less$160 plus an
25 amount equal to $70
26 multiplied by a number which
27 is one less than the
28 number of exemptions
29 for which the taxpayer
30 (or in the case of a
31 married couple filing a
32 joint return, taxpayers)
33 is entitled to a deduction
34 for the taxable year for
35 federal income tax purposes
36 under subsections (b) and
37 (c) of section 151 of the
38 internal revenue code
39 Over $25,000 but not over $45,000$130 plus an amount
40 equal to $48
41 multiplied by a number
42 which is one less than
43 the number of exemptions
44 for which the taxpayer
45 (or in the case of
46 a married couple filing
47 a joint return, taxpayers)
48 is entitled to a deduction
49 for the taxable year for
50 federal income tax purposes
51 under subsections (b)
52 and (c) of section 151
53 of the internal revenue code
S. 6342 5
1 Over $45,000 but not over $65,000$110 plus an amount
2 equal to $24 multiplied
3 by a number which is one
4 less than the number
5 of exemptions for
6 which the taxpayer (or
7 in the case of a married
8 couple filing a joint return,
9 taxpayers) is entitled to a
10 deduction for the taxable
11 year for federal income tax
12 purposes under subsections
13 (b) and (c) of section 151
14 of the internal revenue code
15 Over $65,000 but not over $100,000 $90 plus an amount
16 equal to $24 multiplied
17 by a number which is one
18 less than the number
19 of exemptions for
20 which the taxpayer (or
21 in the case of a married
22 couple filing a joint return,
23 taxpayers) is
24 entitled to a deduction
25 for the taxable year for
26 federal income tax purposes
27 under subsections (b) and
28 (c) of section 151 of the
29 internal revenue code
30 § 2. This act shall take effect immediately.
