senate Bill S3936A

Provides a maximum $500 tax credit for taxpayer expenses not compensated by insurance related to the purchase of a qualified hearing aid

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Sponsor

O'BRIEN

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 27 / Feb / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 26 / Mar / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 26 / Mar / 2014
    • PRINT NUMBER 3936A

Summary

Provides a maximum $500 tax credit for taxpayer expenses, not compensated by insurance or otherwise, related to the purchase of a qualified hearing aid for the taxpayer or a dependent; limited to election once every three years.

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Bill Details

Versions:
S3936
S3936A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §606, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3863A
2009-2010: S786

Sponsor Memo

BILL NUMBER:S3936A

TITLE OF BILL: An act to amend the tax law, in relation to providing
a tax credit to individuals for up to five hundred dollars of expenses
not compensated by insurance for the purchase of a qualified hearing
aid

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this legislation is to lower the cost of hearing aids
and ensure that anyone who needs hearing aids is able to purchase
them.

SUMMARY OF SPECIFIC PROVISIONS:

The legislation would provide a tax credit of up to $500 per hearing
aid, available once every five years towards the purchase of a hearing
aid(s) for any individual or those purchasing a hearing aid for a
dependent if it is not covered by insurance or otherwise.

JUSTIFICATION:

It is estimated that there are 28 million Americans with hearing loss.
Included in this figure are 1 million children under the age of 18
with a diagnosed hearing loss who are not now using a hearing aid, and
around 9.7 million Americans age 55 and over. While 95% of individuals
with hearing loss could be successfully treated with hearing aids,
only 22%(6.35 million Americans) currently use them according to the
most recent 'MarkeTrak' report, the largest national consumer survey
on hearing loss in America. Forty percent of individuals with hearing
loss have incomes of less than $30,000 per year. A Department of
Commerce study indicates that the overall family income of people with
hearing loss is almost half that of the general population. Thirty
percent of those with hearing loss cite financial constraints as a
core reason they do not use hearing aids, according to a MarkeTrak
report. The average cost for a hearing aid in 2002 was over $1,400,
and almost 2/3 of individuals with hearing loss require two devices,
thereby increasing the average out-of-pocket expense to over $2,800.
This legislation is not intended to cover the full cost of hearing
aids, but will simply provide some measure of financial assistance to
individuals and families who are most in need of these devices but are
unable to afford them.

PRIOR LEGISLATIVE HISTORY:

2005-06: S.2630 Government Operations;
2007-08: S.289 Finance;
2009-10: S.786 Government Operations;
2011-12: S.3863 Government Operations

FISCAL IMPLICATIONS:

This bill would create a nonrefundable credit of up to $500 under the
personal income tax for expenses for the purchase of hearing aids not
compensated by insurance.

EFFECTIVE DATE:


Immediately and will apply to taxable years beginning on and after the
first of January next succeeding the date on which it shall have
become law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3936--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 27, 2013
                               ___________

Introduced  by  Sens.  O'BRIEN, DILAN, SAMPSON -- read twice and ordered
  printed, and when printed to be committed to the Committee on Investi-
  gations and Government Operations -- recommitted to the  Committee  on
  Investigations  and  Government  Operations  in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend the tax law, in relation to providing a tax credit to
  individuals for up to five hundred dollars of expenses not compensated
  by insurance for the purchase of a qualified hearing aid

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

  Section  1.   Subsections (yy) and (zz) of section 606 of the tax law,
as relettered by section 5 of part H of chapter 1 of the laws  of  2003,
are  relettered subsections (yyy) and (zzz) and a new subsection (xx) is
added to read as follows:
  (XX) HEARING AID CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT,  TO
BE  COMPUTED  AS  PROVIDED  IN  THIS SUBSECTION, AGAINST THE TAX IMPOSED
PURSUANT TO SECTION SIX HUNDRED ONE OF THIS PART. THE AMOUNT  OF  CREDIT
SHALL  EQUAL THE AMOUNT PAID BY THE TAXPAYER DURING THE TAXABLE YEAR, UP
TO FIVE HUNDRED DOLLARS, AND NOT COMPENSATED BY INSURANCE OR  OTHERWISE,
FOR THE PURCHASE OF ANY QUALIFIED HEARING AID.
  (2) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFIED HEARING AID" SHALL
MEAN A HEARING AID WHICH IS AUTHORIZED FOR COMMERCIAL DISTRIBUTION UNDER
THE FEDERAL FOOD, DRUG AND COSMETIC ACT AND WHICH IS INTENDED FOR USE BY
THE TAXPAYER OR AN INDIVIDUAL WITH RESPECT TO WHOM THE TAXPAYER, FOR THE
TAXABLE YEAR, IS ALLOWED A PERSONAL EXEMPTION FOR DEPENDENTS.
  (3) THIS SUBSECTION SHALL APPLY TO ANY INDIVIDUAL FOR ANY TAXABLE YEAR
ONLY IF SUCH INDIVIDUAL ELECTS TO HAVE THIS SECTION APPLY FOR SUCH TAXA-
BLE YEAR. AN ELECTION TO HAVE THIS SECTION APPLY MAY NOT BE MADE FOR ANY
TAXABLE YEAR IF SUCH ELECTION IS IN EFFECT WITH RESPECT TO SUCH INDIVID-
UAL FOR EITHER OF THE TWO TAXABLE YEARS PRECEDING SUCH TAXABLE YEAR.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06994-02-4

S. 3936--A                          2

  (4)  NO CREDIT SHALL BE ALLOWED FOR ANY HEARING AID EXPENSES FOR WHICH
A DEDUCTION OR CREDIT IS ALLOWED UNDER ANY OTHER PROVISION OF THIS CHAP-
TER.
  (5)  IN  NO  EVENT  SHALL  THE  AMOUNT  OF THE CREDIT PROVIDED BY THIS
SUBSECTION EXCEED THE TAXPAYER'S TAX FOR THE TAXABLE YEAR.  HOWEVER,  IF
THE AMOUNT OF CREDIT OTHERWISE ALLOWABLE PURSUANT TO THIS SUBSECTION FOR
ANY TAXABLE YEAR RESULTS IN SUCH EXCESS AMOUNT, ANY AMOUNT OF CREDIT NOT
DEDUCTIBLE  IN  SUCH  TAXABLE  YEAR 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  and after the first of January next succeeding the
date on which it shall have become a law.

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