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

                                  4034

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 29, 2009
                               ___________

Introduced  by M. of A. THIELE, SAYWARD, CROUCH, BARCLAY, QUINN, RAIA --
  Multi-Sponsored by -- M. of A. ALFANO, BACALLES, BALL, BARRA, BURLING,
  CALHOUN, CONTE, DUPREY, ERRIGO, FINCH, HAWLEY, KOLB, P. LOPEZ, MILLER,
  MOLINARO, OAKS, O'MARA, REILICH, SALADINO, SCOZZAFAVA, SPANO, TEDISCO,
  TOWNSEND, WALKER -- read once and referred to the  Committee  on  Ways
  and Means

AN  ACT to amend the tax law, in relation to applicable internal revenue
  code provisions

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

  Section 1. Subsection (a) of section 951 of the tax law, as amended by
section  1  of  part A of chapter 407 of the laws of 1999, is amended to
read as follows:
  (a) Dates. For purposes of this article, any reference to the internal
revenue code means the United States Internal Revenue Code of 1986, with
all amendments enacted on or before July twenty-second, nineteen hundred
ninety-eight, and, unless specifically provided otherwise in this  arti-
cle,  any  reference to December thirty-first, nineteen hundred seventy-
six or January first, nineteen hundred seventy-seven  contained  in  the
provisions of such code which are applicable to the determination of the
tax imposed by this article shall be read as a reference to June thirti-
eth,  nineteen  hundred  seventy-eight  or  July first, nineteen hundred
seventy-eight, respectively. Notwithstanding the foregoing, the  unified
credit  against  the  estate tax provided in section two thousand ten of
the internal revenue code shall, for purposes of this  article,  be  the
amount  allowed  by  such  section  under  the applicable federal law in
effect on the decedent's date of death. Provided, however, the amount of
such credit allowable for purposes of this article shall not exceed  the
amount allowable as if the federal unified credit did not exceed the tax
due  under  section  two  thousand one of the internal revenue code on a
federal taxable estate of [one] THREE million dollars.
  S 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD03834-02-9