STATE OF NEW YORK
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7047
2013-2014 Regular Sessions
IN ASSEMBLY
April 30, 2013
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Introduced by M. of A. TEDISCO -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a tax credit
for low income individuals subject to the federal self-employment tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Legislative intent. The legislature recognizes the need to
2 alleviate the tax burden of low income individual taxpayers whose income
3 is largely derived from self-employment and therefore affected by feder-
4 al self-employment taxes to a degree disproportionate with such taxpay-
5 ers' level of disposable income. This circumstance hinders many newly
6 started businesses in the state. Therefore, this act provides a state-
7 level credit to provide relief to these taxpayers.
8 § 2. Section 606 of the tax law is amended by adding a new subsection
9 (ww) to read as follows:
10 (ww) Self-employed taxpayer credit. (1) General. A qualified self-em-
11 ployed taxpayer shall be allowed a credit against the tax imposed by
12 this article equal to twenty-five percent of his or her federal self-em-
13 ployment tax liability for the year, but not exceeding a maximum amount
14 of five hundred dollars, and subject to phase-out as provided under
15 paragraph three of this subsection.
16 (2) Definition of "qualified self-employed taxpayer". A qualified
17 self-employed taxpayer is an individual taxpayer, whose federal gross
18 income for the tax year is below forty thousand dollars, and whose busi-
19 ness income in the year is an amount of at least seventy percent of his
20 or her federal gross income. Business entities shall not be qualified.
21 (3) Maximum credit phase-out. The maximum allowed credit of five
22 hundred dollars shall be reduced dollar for dollar for each dollar
23 beyond thirty-nine thousand five hundred dollars of federal gross
24 income, such that the credit is completely phased out upon reaching
25 forty thousand dollars of federal gross income.
26 § 3. This act shall take effect immediately and shall apply to taxable
27 years beginning on or after January 1, 2014.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09418-02-3
