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

                                  4875

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2009
                               ___________

Introduced  by  M.  of  A. JOHN, WRIGHT, ABBATE, BENEDETTO, CHRISTENSEN,
  GLICK, GREENE, PERRY, ROSENTHAL, SCARBOROUGH -- Multi-Sponsored by  --
  M.  of  A. BROOK-KRASNY, CAMARA, COLTON, DESTITO, DINOWITZ, EDDINGTON,
  GUNTHER, JAFFEE,  KOON,  LANCMAN,  LUPARDO,  McENENY,  MENG,  PHEFFER,
  RUSSELL,  SCHIMEL,  SPANO, STIRPE, TITONE, WEISENBERG -- read once and
  referred to the Committee on Ways and Means

AN ACT to amend the tax law, in relation to providing an  earned  income
  tax  credit  to  youth  workers, increasing the standard deduction and
  providing for the deduction of student loan  interest;  and  providing
  for the repeal of such provisions upon expiration thereof

  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 (d-2) to read as follows:
  (D-2)  EARNED INCOME TAX CREDIT FOR YOUTH WORKERS. (1) A TAX DESCRIBED
IN PARAGRAPH TWO OF THIS SUBSECTION SHALL BE ALLOWED A CREDIT  EQUAL  TO
THE  PRODUCT OF ONE AND THREE-TENTHS AND THE AMOUNT OF THE EARNED INCOME
TAX CREDIT THAT WOULD HAVE BEEN ALLOWED TO THE TAXPAYER UNDER SECTION 32
OF THE INTERNAL REVENUE CODE, IF THE TAXPAYER HAD ATTAINED  THE  MINIMUM
AGE  OF  ELIGIBILITY  FOR  SUCH  EARNED  INCOME  TAX CREDIT SET FORTH IN
SECTION 32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE.
  (2) TO BE ALLOWED A CREDIT UNDER  THIS  SUBSECTION,  A  TAXPAYER  MUST
SATISFY ALL OF THE FOLLOWING QUALIFICATIONS:
  (A)  THE  TAXPAYER MUST BE A RESIDENT TAXPAYER WHO IS NOT CLAIMED AS A
DEPENDENT OF ANOTHER TAXPAYER.
  (B) THE TAXPAYER MUST HAVE ATTAINED THE AGE OF SEVENTEEN AND MUST  NOT
HAVE  ATTAINED  THE MINIMUM AGE AT WHICH A TAXPAYER IS QUALIFIED FOR THE
EARNED  INCOME  TAX  CREDIT  AS  SUCH  AGE  IS  SET  FORTH  IN   SECTION
32(C)(1)(A)(II)(II) OF THE INTERNAL REVENUE CODE.
  (C)  THE TAXPAYER MUST NOT BE THE CUSTODIAL OR NON-CUSTODIAL PARENT OF
A MINOR CHILD OR CHILDREN.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07422-01-9
              

A. 4875                             2

  (3) NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT THE QUALIFICA-
TIONS OF A TAXPAYER WHO IS OTHERWISE ELIGIBLE FOR THE EARNED INCOME  TAX
CREDIT  AND WHO IS ENROLLED IN A FULL-TIME OR PART-TIME ACADEMIC PROGRAM
LEADING TO COMPLETION OF A  HIGH  SCHOOL  DIPLOMA,  GENERAL  EQUIVALENCY
DIPLOMA,  POST-SECONDARY CERTIFICATE OR WORK READINESS CREDENTIAL, ASSO-
CIATE DEGREE OR BACCALAUREATE DEGREE.
  (4) REPORTS. THE COMMISSIONER  SHALL  PREPARE  A  PRELIMINARY  WRITTEN
REPORT AFTER JULY THIRTY-FIRST AND A FINAL WRITTEN REPORT AFTER DECEMBER
THIRTY-FIRST  OF  EACH  CALENDAR  YEAR,  WHICH SHALL CONTAIN STATISTICAL
INFORMATION REGARDING THE CREDITS GRANTED ON OR BEFORE SUCH DATES  UNDER
THIS SUBSECTION DURING SUCH CALENDAR YEAR. COPIES OF THESE REPORTS SHALL
BE  SUBMITTED BY SUCH COMMISSIONER TO THE GOVERNOR, THE TEMPORARY PRESI-
DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  THE  CHAIRMAN  OF  THE
SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE  WITHIN  SIXTY  DAYS  OF JULY THIRTY-FIRST WITH RESPECT TO THE
PRELIMINARY REPORT, AND WITHIN FORTY-FIVE DAYS OF DECEMBER  THIRTY-FIRST
WITH  RESPECT TO THE FINAL REPORT.  SUCH REPORTS SHALL CONTAIN, BUT NEED
NOT BE LIMITED TO, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF  SUCH
CREDITS  ALLOWED.   SUCH INFORMATION SHALL INCLUDE THE NUMBER OF CREDITS
AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE, THE NUMBER
OF CREDITS AND THE AVERAGE AMOUNTS OF SUCH CREDITS ALLOWED TO  TAXPAYERS
IN EACH COUNTY.
  S 2. Subsection (a) of section 614 of the tax law, as amended by chap-
ter 170 of the laws of 1994, is amended to read as follows:
  (a)  Unmarried  individual. For taxable years beginning after nineteen
hundred ninety-six, the New York standard deduction of a resident  indi-
vidual  who  is  not married nor the head of a household nor a surviving
spouse nor an individual whose federal exemption amount is zero shall be
seven thousand five hundred dollars;  for  taxable  years  beginning  in
nineteen  hundred  ninety-six,  such  standard  deduction shall be seven
thousand four hundred dollars; for taxable years beginning  in  nineteen
hundred  ninety-five,  such standard deduction shall be six thousand six
hundred dollars; and for taxable years beginning after nineteen  hundred
eighty-nine  and  before  nineteen  hundred  ninety-five,  such standard
deduction shall be six thousand dollars.  FOR  TAXABLE  YEARS  BEGINNING
AFTER  TWO  THOUSAND  TEN, THE NEW YORK STANDARD DEDUCTION OF A RESIDENT
INDIVIDUAL WHO IS BETWEEN THE AGES OF EIGHTEEN AND TWENTY-FOUR  AND  WHO
IS NOT MARRIED NOR THE HEAD OF A HOUSEHOLD NOR A SURVIVING SPOUSE NOR AN
INDIVIDUAL  WHOSE FEDERAL EXEMPTION AMOUNT IS ZERO SHALL BE TEN THOUSAND
DOLLARS.
  S 3. Section 615 of the tax law is amended by adding a new  subsection
(g) to read as follows:
  (G)  FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST, TWO THOU-
SAND TEN, IN THE CASE OF A RESIDENT INDIVIDUAL, THERE SHALL  BE  ALLOWED
AS A DEDUCTION FOR THE TAXABLE YEAR AN AMOUNT EQUAL TO THE INTEREST PAID
BY  THE TAXPAYER DURING THE TAXABLE YEAR ON ANY QUALIFIED EDUCATION LOAN
TO THE EXTENT AND AS PROVIDED IN SECTION 221  OF  THE  INTERNAL  REVENUE
CODE.
  S 4. This act shall take effect immediately and shall apply to taxable
years  beginning  on  or  after  January 1, 2012 and shall expire and be
deemed repealed December 31, 2017.