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.
STATE OF NEW YORK
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1182
2023-2024 Regular Sessions
IN ASSEMBLY
January 13, 2023
___________
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the
Committee on Ways and Means
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. (A) Except as provided in subparagraphs (B)
7 and (C) of this paragraph the amount of the credit allowed under this
8 subsection shall be as follows:
9 (i) One hundred percent of the excess of thirty percent of the taxpay-
10 er's gross income such taxpayer pays in rent for such taxable year for
11 taxpayers whose gross income is twenty-five thousand dollars or less;
12 (ii) Seventy-five percent of the excess of thirty percent of the
13 taxpayer's gross income such taxpayer pays in rent for such taxable year
14 for taxpayers whose gross income is greater than twenty-five thousand
15 dollars but less than fifty thousand dollars;
16 (iii) Fifty percent of the excess of thirty percent of the taxpayer's
17 gross income such taxpayer pays in rent for such taxable year for
18 taxpayers whose gross income is fifty thousand dollars or greater but
19 less than seventy-five thousand dollars;
20 (iv) Twenty-five percent of the excess of thirty percent of the
21 taxpayer's gross income such taxpayer pays in rent for such taxable year
22 for taxpayers whose gross income is seventy-five thousand dollars or
23 greater but less than one hundred thousand dollars; or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01239-01-3
A. 1182 2
1 (v) Zero percent of the excess of thirty percent of the taxpayer's
2 gross income such taxpayer pays in rent for such taxable year for
3 taxpayers whose gross income is one hundred thousand dollars or greater.
4 (B) Notwithstanding the provisions of subparagraph (A) of this para-
5 graph, where the primary residence of a taxpayer is located in an area
6 for which, under the rule published in the federal register on November
7 sixteenth of two thousand sixteen (81 Fed. Reg. 80567), the small area
8 fair market rent is used for purposes of the federal housing choice
9 voucher program the amount of the credit allowed under this subsection
10 shall be as follows:
11 (i) One hundred percent of the excess of thirty percent of the taxpay-
12 er's gross income such taxpayer pays in rent for such taxable year for
13 taxpayers whose gross income is twenty-five thousand dollars or less;
14 (ii) Seventy-five percent of the excess of thirty percent of the
15 taxpayer's gross income such taxpayer pays in rent for such taxable year
16 for taxpayers whose gross income is greater than twenty-five thousand
17 dollars but less than fifty thousand dollars;
18 (iii) Fifty percent of the excess of thirty percent of the taxpayer's
19 gross income such taxpayer pays in rent for such taxable year for
20 taxpayers whose gross income is fifty thousand dollars or greater but
21 less than seventy-five thousand dollars;
22 (iv) Twenty-five percent of the excess of thirty percent of the
23 taxpayer's gross income such taxpayer pays in rent for such taxable year
24 for taxpayers whose gross income is seventy-five thousand dollars or
25 greater but less than one hundred twenty-five thousand dollars; or
26 (v) Zero percent of the excess of thirty percent of the taxpayer's
27 gross income such taxpayer pays in rent for such taxable year for
28 taxpayers whose gross income is one hundred twenty-five thousand dollars
29 or greater.
30 (C) Notwithstanding the provisions of subparagraph (A) or (B) of this
31 paragraph, where the rent of the primary residence of a taxpayer is
32 subsidized under a federal, state, local or tribal program, the amount
33 of the credit allowed under this subsection shall be equal to one-
34 twelfth of the amount of rent paid by such taxpayer that is not subsi-
35 dized under any such program during the taxable year with respect to
36 such residence.
37 (3) Limitation on amount of credit. For the purposes of determining
38 the amount of the credit allowed under this subsection, with respect to
39 a primary residence for the taxable year, there shall not be taken into
40 account rent in excess of an amount equal to one hundred fifty percent
41 of the fair market rent, including the utility allowance, applicable to
42 such residence, as most recently published, as of the beginning of the
43 taxable year, by the United States department of housing and urban
44 development.
45 (4) Application of credit. If the amount of the credit allowed under
46 this subsection for any taxable year shall exceed the taxpayer's tax for
47 such year, the excess shall be treated as an overpayment of tax to be
48 credited or refunded in accordance with the provisions of section six
49 hundred eighty-six of this article, provided, however, that no interest
50 shall be paid thereon.
51 (5) Administration. The commissioner shall have the authority to
52 promulgate such rules and regulations as may be necessary for the proc-
53 essing, determination and granting of credits under this subsection.
54 (6) Definitions. As used in this subsection, the following terms shall
55 have the following meanings:
A. 1182 3
1 (A) "Qualified taxpayer" shall mean an individual who leases the indi-
2 vidual's primary residence during the taxable year and who pays rent
3 with respect to such residence in excess of thirty percent of such
4 taxpayer's gross income for such taxable year.
5 (B) "Rent" shall include any amount paid for utilities.
6 (C) "Gross income" shall mean the federal adjusted gross income of a
7 taxpayer.
8 § 2. This act shall take effect on the first of January next succeed-
9 ing the date on which it shall have become a law, and shall apply to
10 taxable years commencing on and after such date. Effective immediately,
11 the addition, amendment and/or repeal of any rule or regulation neces-
12 sary for the implementation of this act on its effective date are
13 authorized to be made and completed on or before such effective date.
