S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6321
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 12, 2021
                                ___________
 
 Introduced  by M. of A. STERN -- 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, paragraph 1 as
 amended  by  section  1  of part E of chapter 59 of the laws of 2020, is
 amended to read as follows:
   (aa) Long-term care insurance credit. (1) Residents.  There  shall  be
 allowed  a  credit  against the tax imposed by this article in an amount
 equal to twenty percent of the premiums paid during the taxable year for
 long-term care insurance.  The credit amount shall not exceed one  thou-
 sand five hundred dollars and shall be allowed only if the amount of New
 York adjusted gross income required to be reported on the return is less
 than  two  hundred fifty thousand dollars.  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  CRED-
 ITS  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 COMMISSIONER, SHALL REFUND AS AN OVERPAYMENT, WITHOUT
 INTEREST, THE AMOUNT OF SUCH EXCESS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08980-01-1
              

 A. 6321                             2
 
   (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
 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.