S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2997
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 Introduced by M. of A. BARNWELL -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN  ACT  to  amend  the  tax  law, in relation to raising the cap on the
   amount of pensions and annuities which can be  subtracted  from  gross
   income
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 3-a of subsection (c) of section 612 of  the  tax
 law,  as  amended  by  section  3 of part I of chapter 59 of the laws of
 2015, is amended to read as follows:
   (3-a) Pensions  and  annuities  received  by  an  individual  who  has
 attained  the  age  of  fifty-nine  and one-half, not otherwise excluded
 pursuant to paragraph three of this subsection, to the extent includible
 in gross income for federal income tax purposes, but not  in  excess  of
 [twenty]  THIRTY thousand dollars, which are periodic payments attribut-
 able to personal services performed by  such  individual  prior  to  his
 retirement  from  employment,  which arise (i) from an employer-employee
 relationship or (ii) from contributions to a retirement plan  which  are
 deductible  for federal income tax purposes. However, the term "pensions
 and annuities" shall also include distributions received by an  individ-
 ual who has attained the age of fifty-nine and one-half from an individ-
 ual  retirement  account or an individual retirement annuity, as defined
 in section four hundred eight of the internal revenue code, and distrib-
 utions received by an individual who has attained the age of  fifty-nine
 and one-half from self-employed individual and owner-employee retirement
 plans  which  qualify  under  section  four  hundred one of the internal
 revenue code, whether or not the payments are periodic in nature. Never-
 theless, the term "pensions and annuities" shall not  include  any  lump
 sum  distribution,  as  defined in subparagraph (D) of paragraph four of
 subsection (e) of section four hundred two of the internal revenue  code
 and  taxed  under  section  six  hundred  three of this article. Where a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06536-01-7

 A. 2997                             2
 
 husband and wife file a joint state  personal  income  tax  return,  the
 modification provided for in this paragraph shall be computed as if they
 were  filing separate state personal income tax returns. Where a payment
 would otherwise come within the meaning of the term "pensions and annui-
 ties"  as  set  forth  in this paragraph, except that such individual is
 deceased, such payment shall, nevertheless, be treated as a  pension  or
 annuity  for  purposes  of this paragraph if such payment is received by
 such individual's beneficiary.
   § 2. This act shall take effect on the three hundred  sixty-fifth  day
 after is shall have become a law.