S T A T E   O F   N E W   Y O R K
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                                  2342

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 18, 2011
                               ___________

Introduced  by  M. of A. SCHIMMINGER, GABRYSZAK -- Multi-Sponsored by --
  M. of A. GIGLIO -- read once and referred to the Committee on Ways and
  Means

AN ACT to amend the tax law, in  relation  to  providing  a  refund  for
  excess tax paid after long-term insurance credit is applied

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (aa) of section 606 of the tax law,  as  amended
by  section 1 of part P of chapter 61 of the laws of 2005, is amended to
read as follows:
  (aa) Long-term care insurance credit. (1) Residents. A taxpayer  shall
be  allowed  a  credit  against the tax imposed by this article equal to
twenty percent of the premium paid during the taxable year for long-term
care insurance. In order to qualify  for  such  credit,  the  taxpayer's
premium  payment  must be for the purchase of or for continuing coverage
under a long-term care insurance policy that qualifies for  such  credit
pursuant  to section one thousand one hundred seventeen of the insurance
law. [If the amount of the credit allowable under  this  subsection  for
any  taxable  year  shall  exceed  the taxpayer's tax for such year, the
excess may be carried over to the following year or  years  and  may  be
deducted  from  the  taxpayer's  tax for such year or years.] THE CREDIT
UNDER THIS SUBSECTION SHALL BE ALLOWED AGAINST THE TAXES IMPOSED BY THIS
ARTICLE FOR THE TAXABLE YEAR REDUCED BY THE CREDITS  PERMITTED  BY  THIS
ARTICLE.  IF  THE CREDIT EXCEEDS THE TAX AS SO REDUCED, THE TAXPAYER MAY
RECEIVE, AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE  OF  THE  COMMIS-
SIONER,  SHALL REFUND AS AN OVERPAYMENT, WITHOUT INTEREST, THE AMOUNT OF
SUCH EXCESS.
  (2) Nonresidents and part-year residents. In the case of a nonresident
taxpayer or a part-year resident taxpayer, the credit  determined  under
this subsection shall be limited to the amount determined by multiplying
the  amount  of such credit by the New York source fraction as set forth

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02577-01-1
              

A. 2342                             2

in paragraph three of subsection (e) of section six hundred one of  this
article. [The credit as so limited shall be applied as provided in para-
graph  one  of  this  subsection.] IF THE AMOUNT OF THE CREDIT ALLOWABLE
UNDER  THIS  SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING  YEAR
OR  YEARS  AND  MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR
YEARS.
  S 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after the first of  January  next  succeeding  the
date on which it shall have become a law.