BILL NUMBER: S1574
TITLE OF BILL :
An act to amend the tax law and the real property tax law, in relation
to establishing the Caregiver's Assistance Act
PURPOSE OR GENERAL IDEA OF THE BILL :
To provide tax credits and exemptions to aid those who provide
informal, unpaid care of their elderly relatives.
SUMMARY OF PROVISIONS :
The bill makes the following changes in State tax law:
Section 1. Short Title: Caregiver's Assistance Act.
Section 2. Adds a new subsection (gg) to section 606 of the tax law,
to provide a refundable credit to qualified taxpayers who provide
informal, unpaid care to senior family members. The credit amount is
20% of the first $2,400 spent by the taxpayer on behalf of a senior
relative, plus $75 for any amount spent in excess of $240. The maximum
credit is thus $555. A senior family member is a person who is 60
years old or older, who is related within the third degree of
consanguinity and who resides in the taxpayer's home and whose New
York adjusted gross income is $13,000 or less for a single person, or
$20,000 or less for a married couple. The credit is not applicable to
taxpayers whose adjusted gross income is $45,000 for a single
taxpayer, or $60,000 for married taxpayers.
Section 3. Adds a new paragraph (d) to subdivision 4-a of section 425
of the real property tax law, to allow a pro-rated basic or enhanced
STAR exemption that would apply if the senior owned the home to a
residence in which a senior lives with taxpayer. The exemption would
apply to that portion of the home used by the senior for living and
the provision of care. Thus, in a 2,000 square foot house, if the
senior member occupied one 1Ox12 room (120 square feet), and there was
a second room used for the provision of care of equal size, the amount
of the STAR exemption would be 12% of the total basic or enhanced
The largest amount of care provided to seniors in New York is provided
by family. In the most reliable and recent study, "Informal, Unpaid,
Care Giving To New York State Elders: A Telephone Survey, 2001,"
Center For Aging Policy Research, State University Of New York At
Stonybrook, the number of caregivers is estimated at 734,000, or
roughly 9.6% of the 7,650,000 households in New York, providing an
average of 22 hours of care per week. The study estimates the value of
this care at $11.2 billion annually. These are charges and costs which
the State does not now bear.
The purpose of this legislation is to provide not only a recognition
of what has been termed the "love-equity" provided by these care
givers for their senior relatives, but also to provide an incentive
for more families to provide the care, and to encourage families
currently providing the care to continue to do so for longer periods.
LEGISLATIVE HISTORY :
S.6004 of 2004 - Reported to Finance, then passed as part of larger
Senate Tax Package.
S.1194 of 2005/06 - Aging, Finance
S.459 -2007-08 - Finance
FISCAL IMPLICATIONS :
To be determined.
EFFECTIVE DATE :
January 1, after it becomes law.
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