Assembly Bill A9795

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9795
 
                           I N  A S S E M B L Y
 
                             February 9, 2018
                                ___________
 
 Introduced by M. of A. ABBATE -- read once and referred to the Committee
   on Ways and Means
 
 AN  ACT  to  amend the tax law, in relation to implementing a union dues
   tax credit
 
   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 (iii) to read as follows:
   (III) UNION DUES TAX CREDIT. (1)  ALLOWANCE  OF  CREDIT.  FOR  TAXABLE
 YEARS  BEGINNING  ON  AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN AND
 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, A RESIDENT TAXPAYER SHALL
 BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  PARAGRAPH  THREE  OF
 THIS  SUBSECTION,  AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR ALLOWABLE
 UNION DUES.
   (2) ALLOWABLE DUES. THE TERM "ALLOWABLE UNION  DUES"  SHALL  MEAN  THE
 FULL  AMOUNT  OF  AGENCY  SHOP  FEES AND UNION DUES PAID BY THE TAXPAYER
 DURING THE TAXABLE YEAR THAT WOULD HAVE BEEN DEDUCTIBLE IN  THE  TAXABLE
 YEAR  ENDING DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN UNDER SECTION
 187 OF THE INTERNAL  REVENUE  CODE  WITHOUT  REGARD  TO  THE  LIMITATION
 IMPOSED BY SECTION 67 OF THE INTERNAL REVENUE CODE.
   (3)  COMPUTATION OF CREDIT. THE AMOUNT OF CREDIT ALLOWABLE PURSUANT TO
 THIS SUBSECTION SHALL EQUAL THE ALLOWABLE UNION DUES MULTIPLIED  BY  THE
 RATE  OF  TAX IMPOSED ON THE TAXPAYER'S NEW YORK TAXABLE INCOME PURSUANT
 TO SECTION SIX HUNDRED ONE OF THIS PART.
   (4) REFUNDS. THE CREDIT UNDER THIS SUBSECTION SHALL BE ALLOWED AGAINST
 THE TAXES IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR  REDUCED  BY  THE
 CREDITS  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 PAY AS AN OVERPAYMENT, WITHOUT
 INTEREST, THE AMOUNT OF SUCH EXCESS.
   § 2. Paragraph 5 of subsection (d) of section 615 of the tax  law,  as
 added  by  section  1  of part OOO of chapter 59 of the laws of 2017, is
 amended to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14102-03-8

 A. 9795                             2
 
   (5) FOR TAXABLE YEARS BEGINNING BEFORE  JANUARY  FIRST,  TWO  THOUSAND
 EIGHTEEN  AND  AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-SIX, the
 full amount of union dues paid during the taxable year if  the  taxpayer
 was  not  allowed federal miscellaneous itemized deductions by operation
 of  section 67 of the internal revenue code. If any amount of union dues
 representing federal miscellaneous itemized deductions was allowed, then
 the amount allowed as a New York itemized deduction for union dues  paid
 shall  be  a percentage of the union dues disallowed by the operation of
 section 67 of the internal revenue code computed as follows. The  amount
 allowed  as a New York itemized deduction shall be computed by multiply-
 ing the total union dues paid by the taxpayer during the taxable year by
 a percentage determined by subtracting from one, a  fraction  where  the
 numerator  is the amount of federal miscellaneous deductions allowed and
 the  denominator  is  the  aggregate  federal   miscellaneous   itemized
 deductions  before application of the two-percent floor under section 67
 of the internal revenue code. For the purposes of this paragraph,  union
 dues  are  those  amounts that [are] WOULD HAVE BEEN deductible as union
 dues and agency shop fees under section  162  of  the  internal  revenue
 code,  AS IT WAS IN EFFECT PRIOR TO THE ENACTMENT OF PUBLIC LAW NO. 115-
 97.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.