S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2781
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 25, 2019
                                ___________
 
 Introduced  by  M.  of  A.  SCHIMMINGER -- 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
 in paragraph three of subsection (e) of section six hundred one of  this
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03926-01-9

 A. 2781                             2
 
 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.
   § 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.