S T A T E   O F   N E W   Y O R K
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                                  1206

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of  A.  DESTITO,  CHRISTENSEN,  ENGLEBRIGHT,  MAGEE,
  MORELLE, GUNTHER -- Multi-Sponsored by --  M.  of  A.  ARROYO,  AUBRY,
  GANTT,  GREENE,  HIKIND,  JOHN,  KOON, V. LOPEZ, PRETLOW, SCHIMMINGER,
  SEMINERIO, SWEENEY -- read once and referred to the Committee on  Ways
  and Means

AN  ACT  to  amend the tax law, in relation to providing for a dependent
  credit under the personal income tax

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

  Section  1.  Section  606  of  the  tax law is amended by adding a new
subsection (qq) to read as follows:
  (QQ) NEW YORK  STATE  DEPENDENT  CREDIT.  (1)  FOR  PURPOSES  OF  THIS
SUBSECTION,  THE  TERM  "DEPENDENT"  SHALL  HAVE THE SAME MEANING AS THE
MEANING ASSIGNED TO SUCH TERM IN SECTION ONE HUNDRED FIFTY-ONE-C OF  THE
INTERNAL REVENUE CODE.
  (2) A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFT-
ER  PROVIDED,  AGAINST THE TAX IMPOSED BY SUBSECTIONS (A) THROUGH (D) OF
SECTION SIX HUNDRED ONE OF THIS ARTICLE.  IF THE CREDIT EXCEEDS THE  TAX
AS  SO  REDUCED  FOR SUCH YEAR UNDER THIS ARTICLE THE QUALIFIED TAXPAYER
MAY RECEIVE, AND THE  COMPTROLLER,  SUBJECT  TO  A  CERTIFICATE  OF  THE
COMMISSIONER,  SHALL PAY AS AN OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS
BETWEEN SUCH TAX AS SO REDUCED AND  THE  AMOUNT  OF  THE  CREDIT.  IF  A
TAXPAYER  IS  NOT  REQUIRED  TO  FILE  A  RETURN PURSUANT TO SECTION SIX
HUNDRED FIFTY-ONE OF THIS ARTICLE, A TAXPAYER MAY  NEVERTHELESS  RECEIVE
AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE BY THE COMMISSIONER, SHALL
PAY AS AN OVERPAYMENT, WITHOUT INTEREST, THE FULL AMOUNT OF THE CREDIT.
  (3)  A  TAXPAYER SHALL BE ALLOWED A CREDIT PURSUANT TO THIS SUBSECTION
FOR EACH DEPENDENT AND THE CREDIT SHALL EQUAL ONE HUNDRED DOLLARS.
  PROVIDED, HOWEVER, THE AMOUNT OF SUCH CREDIT ALLOWED UNDER THIS  PARA-
GRAPH SHALL BE REDUCED (BUT NOT BELOW ZERO) BY AN AMOUNT WHICH BEARS THE

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

                                                           LBD03316-01-9

A. 1206                             2

SAME  RATIO  TO THE CREDIT (DETERMINED WITHOUT REGARD TO THIS PARAGRAPH)
AS THE EXCESS OF THE TAXPAYER'S ADJUSTED GROSS INCOME  FOR  THE  TAXABLE
YEAR OVER,
  (I)  IN  THE  CASE  OF  MARRIED  INDIVIDUALS  FILING JOINT RETURNS AND
SURVIVING SPOUSES, ONE HUNDRED THOUSAND DOLLARS,
  (II) IN  THE  CASE  OF  HEADS  OF  HOUSEHOLDS,  SEVENTY-FIVE  THOUSAND
DOLLARS,
  (III)  IN  THE  CASE  OF  UNMARRIED INDIVIDUALS AND INDIVIDUALS FILING
SEPARATE RETURNS, FIFTY THOUSAND DOLLARS, BEARS TO TWENTY-FIVE  THOUSAND
DOLLARS.
  (4)  IN  THE  CASE  OF  A  NONRESIDENT TAXPAYER, THE CREDIT UNDER THIS
SUBSECTION SHALL BE ALLOWED AGAINST THE TAX DETERMINED UNDER SUBSECTIONS
(A) THROUGH (D) OF SECTION SIX HUNDRED ONE OF THIS ARTICLE.  THE  AMOUNT
OF THE CREDIT SHALL NOT EXCEED THE TAX DETERMINED UNDER SUCH SUBSECTIONS
FOR  THE TAXABLE YEAR REDUCED BY THE CREDITS PERMITTED UNDER SUBSECTIONS
(B) AND (C) OF THIS SECTION.
  (5) IN THE CASE OF A PART-YEAR RESIDENT  TAXPAYER,  THE  CREDIT  UNDER
THIS  SUBSECTION  SHALL BE ALLOWED AS PROVIDED IN PARAGRAPH FOUR OF THIS
SUBSECTION AND ANY EXCESS CREDIT AFTER THE  APPLICATION  OF  THE  SECOND
SENTENCE OF SUCH PARAGRAPH SHALL BE ALLOWED AGAINST THE TAXES IMPOSED BY
SECTIONS  SIX  HUNDRED  TWO  AND  SIX HUNDRED THREE OF THIS ARTICLE. ANY
REMAINING EXCESS, AFTER SUCH APPLICATION, SHALL BE REFUNDED AS  PROVIDED
IN  PARAGRAPH  TWO OF THIS SUBSECTION, PROVIDED, HOWEVER, THAT ANY OVER-
PAYMENT UNDER SUCH PARAGRAPH SHALL BE  LIMITED  TO  THE  AMOUNT  OF  THE
REMAINING  EXCESS  MULTIPLIED  BY  A FRACTION, THE NUMERATOR OF WHICH IS
FEDERAL ADJUSTED GROSS INCOME FOR THE PERIOD OF RESIDENCE,  COMPUTED  AS
IF  THE TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES WERE LIMITED TO THE
PERIOD OF RESIDENCE, AND THE DENOMINATOR OF WHICH  IS  FEDERAL  ADJUSTED
GROSS INCOME FOR THE TAXABLE YEAR.
  (6)  IN  THE CASE WHERE A HUSBAND AND WIFE FILE SEPARATELY, THE CREDIT
ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE EQUALLY DIVIDED AMONG  SUCH
INDIVIDUALS.
  S 2. This act shall take effect immediately.