STATE OF NEW YORK
________________________________________________________________________
9795
IN ASSEMBLY
February 9, 2018
___________
Introduced by M. of A. ABBATE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to implementing a union dues
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 (iii) to read as follows:
3 (iii) Union dues tax credit. (1) Allowance of credit. For taxable
4 years beginning on and after January first, two thousand eighteen and
5 before January first, two thousand twenty-six, a resident taxpayer shall
6 be allowed a credit, to be computed as provided in paragraph three of
7 this subsection, against the tax imposed by this article for allowable
8 union dues.
9 (2) Allowable dues. The term "allowable union dues" shall mean the
10 full amount of agency shop fees and union dues paid by the taxpayer
11 during the taxable year that would have been deductible in the taxable
12 year ending December thirty-first, two thousand seventeen under section
13 187 of the internal revenue code without regard to the limitation
14 imposed by section 67 of the internal revenue code.
15 (3) Computation of credit. The amount of credit allowable pursuant to
16 this subsection shall equal the allowable union dues multiplied by the
17 rate of tax imposed on the taxpayer's New York taxable income pursuant
18 to section six hundred one of this part.
19 (4) Refunds. The credit under this subsection shall be allowed against
20 the taxes imposed by this article for the taxable year reduced by the
21 credits permitted by this article. If the credit exceeds the tax as so
22 reduced, the taxpayer may receive, and the comptroller, subject to a
23 certificate of the commissioner, shall pay as an overpayment, without
24 interest, the amount of such excess.
25 § 2. Paragraph 5 of subsection (d) of section 615 of the tax law, as
26 added by section 1 of part OOO of chapter 59 of the laws of 2017, is
27 amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14102-03-8
A. 9795 2
1 (5) for taxable years beginning before January first, two thousand
2 eighteen and after December thirty-first, two thousand twenty-six, the
3 full amount of union dues paid during the taxable year if the taxpayer
4 was not allowed federal miscellaneous itemized deductions by operation
5 of section 67 of the internal revenue code. If any amount of union dues
6 representing federal miscellaneous itemized deductions was allowed, then
7 the amount allowed as a New York itemized deduction for union dues paid
8 shall be a percentage of the union dues disallowed by the operation of
9 section 67 of the internal revenue code computed as follows. The amount
10 allowed as a New York itemized deduction shall be computed by multiply-
11 ing the total union dues paid by the taxpayer during the taxable year by
12 a percentage determined by subtracting from one, a fraction where the
13 numerator is the amount of federal miscellaneous deductions allowed and
14 the denominator is the aggregate federal miscellaneous itemized
15 deductions before application of the two-percent floor under section 67
16 of the internal revenue code. For the purposes of this paragraph, union
17 dues are those amounts that [are] would have been deductible as union
18 dues and agency shop fees under section 162 of the internal revenue
19 code, as it was in effect prior to the enactment of Public Law No. 115-
20 97.
21 § 3. This act shall take effect immediately and shall apply to taxable
22 years beginning on and after January 1, 2018.