S02329 Summary:

BILL NOS02329
 
SAME ASNo Same As
 
SPONSORMAYER
 
COSPNSRBRESLIN, JACKSON, KRUEGER, LIU
 
MLTSPNSR
 
Amd §§612 & 606, Tax L
 
Grants a state personal income tax deduction for retirement plan distributions used to purchase long-term care insurance; exempts distributions from individual retirement accounts and individual retirement annuities from state personal income taxation when such distributions are used to purchase long-term health care insurance.
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S02329 Actions:

BILL NOS02329
 
01/19/2023REFERRED TO BUDGET AND REVENUE
01/03/2024REFERRED TO BUDGET AND REVENUE
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S02329 Committee Votes:

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S02329 Floor Votes:

There are no votes for this bill in this legislative session.
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S02329 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2329
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                    January 19, 2023
                                       ___________
 
        Introduced  by Sens. MAYER, BRESLIN, JACKSON, KRUEGER, LIU -- 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 exempting distributions from
          individual retirement accounts  and  individual  retirement  annuities
          from  state  personal income taxation when such distributions are used
          to purchase long-term health care insurance
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Subsection (c) of section 612 of the tax law is amended by
     2  adding a new paragraph 3-d to read as follows:
     3    (3-d) Distributions received by an individual, not otherwise  excluded
     4  pursuant to paragraph three or three-a of this subsection, to the extent
     5  includable  in  gross  income for federal income tax purposes, which are
     6  attributable to personal services  performed  by  such  individual  from
     7  employment,  which  arise  (i) from an employer-employee relationship or
     8  (ii) from contributions to a retirement plan which  are  deductible  for
     9  federal  income  tax purposes, to the extent such distributions are used
    10  during the taxable year to purchase a policy of  long-term  care  insur-
    11  ance,  as  defined  in section one thousand one hundred seventeen of the
    12  insurance law, for such individual or a dependent  of  such  individual.
    13  Such  distributions  shall  include  distributions  from  an  individual
    14  retirement account or an individual retirement annuity,  as  defined  in
    15  section  four  hundred  eight of the internal revenue code, and distrib-
    16  utions from self-employed individual and owner-employee retirement plans
    17  which qualify under section four hundred one  of  the  internal  revenue
    18  code.    Provided,  however, that any distributions excluded pursuant to
    19  this paragraph shall be subtracted from the  total  amount  of  premiums
    20  paid   when  computing  the  amount  of  allowable  credit  pursuant  to
    21  subsection (aa) of section six hundred six of this article.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02351-01-3

        S. 2329                             2
 
     1    § 2. Subsection (aa) of section 606 of the  tax  law,  as  amended  by
     2  section  1  of  part P of chapter 61 of the laws of 2005, paragraph 1 as
     3  amended by section 1 of part E of chapter 59 of the  laws  of  2020,  is
     4  amended to read as follows:
     5    (aa)  Long-term  care  insurance credit. (1) Residents. There shall be
     6  allowed a credit against the tax imposed by this article  in  an  amount
     7  equal to twenty percent of the premiums paid during the taxable year for
     8  long-term  care  insurance,  provided  that  any  amount subtracted from
     9  federal  adjusted  gross  income  pursuant  to  paragraph   three-d   of
    10  subsection  (c)  of  section six hundred twelve of this article shall be
    11  subtracted from the amount of premium paid during the taxable  year  and
    12  the  twenty percent credit shall be based upon such recomputed amount of
    13  premium paid. The credit amount  shall  not  exceed  one  thousand  five
    14  hundred  dollars  and  shall  be  allowed only if the amount of New York
    15  adjusted gross income required to be reported on the return is less than
    16  two hundred fifty thousand dollars. In order to qualify for such credit,
    17  the taxpayer's premium payment must  be  for  the  purchase  of  or  for
    18  continuing  coverage under a long-term care insurance policy that quali-
    19  fies for such credit pursuant to section one thousand one hundred seven-
    20  teen of the insurance law. If the amount of the credit  allowable  under
    21  this subsection for any taxable year shall exceed the taxpayer's tax for
    22  such year, the excess may be carried over to the following year or years
    23  and may be deducted from the taxpayer's tax for such year or years.
    24    (2) Nonresidents and part-year residents. In the case of a nonresident
    25  taxpayer  or  a part-year resident taxpayer, the credit determined under
    26  this subsection shall be limited to the amount determined by multiplying
    27  the amount of such credit by the New York source fraction as  set  forth
    28  in  paragraph three of subsection (e) of section six hundred one of this
    29  article. The credit as so limited shall be applied as provided in  para-
    30  graph  one  of this subsection, provided that any amount subtracted from
    31  federal  adjusted  gross  income  pursuant  to  paragraph   three-d   of
    32  subsection (c) of section six hundred twelve of this article and section
    33  six  hundred  thirty-one  of  this  article shall be subtracted from the
    34  amount of premium paid during the taxable year and  the  twenty  percent
    35  credit shall be based upon such recomputed amount of premium paid.
    36    § 3. This act shall take effect immediately and shall apply to taxable
    37  years  commencing  on  January first in the year in which this act shall
    38  take effect and all subsequent taxable years.
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