LBD07150-02-8
S. 1601--A 2 A. 939--A
Such terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer in any degree specified in
[subparagraphs (A)] PARAGRAPHS ONE through [(G)] EIGHT of [paragraph two
of] subsection [(d)] (A) of section one hundred fifty-two of the inter-
nal revenue code. Provided, however, no person may be a member of more
than one household at one time.
[(c)] (C) "Household gross income" means the aggregate adjusted gross
income of all members of the household for the taxable year as reported
for federal income tax purposes, or which would be reported as adjusted
gross income if a federal income tax return were required to be filed,
with the modifications in subsection (b) of section six hundred twelve
but without the modifications in subsection (c) of such section, plus
any portion of the gain from the sale or exchange of property otherwise
excluded from such amount; earned income from sources without the United
States excludable from federal gross income by section nine hundred
eleven of the internal revenue code; support money not included in
adjusted gross income; nontaxable strike benefits; supplemental security
income payments; the gross amount of any pension or annuity benefits to
the extent not included in such adjusted gross income (including, but
not limited to, railroad retirement benefits and all payments received
under the federal social security act and veterans' disability
pensions); nontaxable interest received from the state of New York, its
agencies, instrumentalities, public corporations, or political subdivi-
sions (including a public corporation created pursuant to agreement or
compact with another state or Canada); workers' compensation; the gross
amount of "loss-of-time" insurance; and the amount of cash public
assistance and relief, other than medical assistance for the needy, paid
to or for the benefit of the qualified taxpayer or members of his house-
hold. Household gross income shall not include surplus foods or other
relief in kind or payments made to individuals because of their status
as victims of Nazi persecution as defined in P.L. 103-286. Provided,
further, household gross income shall only include all such income
received by all members of the household while members of such house-
hold.
(D) "Residence" means a dwelling in this state, whether owned or
rented, and so much of the land abutting it, not exceeding one acre, as
is reasonably necessary for use of the dwelling as a home, and may
consist of a part of a multi-dwelling or multi-purpose building includ-
ing a cooperative or condominium, and rental units within a single
dwelling. Residence includes a trailer or mobile home, used exclusively
for residential purposes and defined as real property pursuant to para-
graph (g) of subdivision twelve of section one hundred two of the real
property tax law.
(E) "Qualifying real property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive of penal-
ties and interest, levied on the residence of a qualified taxpayer and
paid during the taxable year less the credit claimed under THE FORMER
subsection (n-1) of this section. In addition, for taxable years begin-
ning after December thirty-first, nineteen hundred eighty-four, a quali-
fied taxpayer may elect to include any additional amount that would have
been levied in the absence of an exemption from real property taxation
pursuant to section four hundred sixty-seven of the real property tax
law. If tenant-stockholders in a cooperative housing corporation have
met the requirements of section two hundred sixteen of the internal
revenue code by which they are allowed a deduction for real estate
taxes, the amount of taxes so allowable, or which would be allowable if
S. 1601--A 3 A. 939--A
the taxpayer had filed returns on a cash basis, shall be qualifying real
property taxes. If a residence is owned by two or more individuals as
joint tenants or tenants in common, and one or more than one individual
is not a member of the household, qualifying real property taxes is that
part of such taxes on the residence which reflects the ownership
percentage of the qualified taxpayer and members of his household. If a
residence is an integral part of a larger unit, qualifying real property
taxes shall be limited to that amount of such taxes paid as may be
reasonably apportioned to such residence. If a household owns and occu-
pies two or more residences during different periods in the same taxable
year, qualifying real property taxes shall be the sum of the prorated
qualifying real property taxes attributable to the household during the
periods such household occupies each of such residences. If the house-
hold owns and occupies a residence for part of the taxable year and
rents a residence for part of the same taxable year, it may include both
the proration of qualifying real property taxes on the residence owned
and the real property tax equivalent with respect to the months the
residence is rented. Provided, however, for purposes of the credit
allowed under this subsection, qualifying real property taxes may be
included by a qualified taxpayer only to the extent that such taxpayer
or the spouse of such taxpayer occupying such residence for six months
or more of the taxable year owns or has owned the residence and paid
such taxes.
(F) "Real property tax equivalent" means twenty-five percent of the
adjusted rent actually paid in the taxable year by a household solely
for the right of occupancy of its New York residence for the taxable
year. If (i) a residence is rented to two or more individuals as coten-
ants, or such individuals share in the payment of a single rent for the
right of occupancy of such residence, and (ii) each of such individuals
is a member of a different household, one or more of which individuals
shares such residence, real property tax equivalent is that portion of
twenty-five percent of the adjusted rent paid in the taxable year which
reflects that portion of the rent attributable to the qualified taxpayer
and the members of his household.
(G) "Adjusted rent" means rental paid for the right of occupancy of a
residence, excluding charges for heat, gas, electricity, furnishings and
board. Where charges for heat, gas, electricity, furnishing or board
are included in rental but where such charges and the amount thereof are
not separately set forth in a written rental agreement, for purposes of
determining adjusted rent the qualified taxpayer shall reduce rental
paid as follows:
(i) For heat, or heat and gas, deduct fifteen percent of rental paid.
(ii) For heat, gas and electricity, deduct twenty percent of rental
paid.
(iii) For heat, gas, electricity and furnishings, deduct twenty-five
percent of rental paid.
(iv) For heat, gas, electricity, furnishings and board, deduct fifty
percent of rental paid.
If the [tax commission] COMMISSIONER determines that the adjusted rent
shown on the return is excessive, the [tax commission] COMMISSIONER may
reduce such rent, for purposes of the computation of the credit, to an
amount substantially equivalent to rent for a comparable accommodation.
(2) A qualified taxpayer shall be allowed a credit as provided in
paragraph three hereof against the taxes imposed by this article reduced
by the credits permitted by this article. If the credit exceeds the tax
as so reduced for such year under this article the qualified taxpayer
S. 1601--A 4 A. 939--A
may receive, and the comptroller, subject to a certificate of the [state
tax commission] COMMISSIONER, shall pay as an overpayment, without
interest, any excess between such tax as so reduced and the amount of
the credit. If a qualified taxpayer is not required to file a return
pursuant to section six hundred fifty-one OF THIS ARTICLE, a qualified
taxpayer may nevertheless receive and the comptroller, subject to a
certificate of the [state tax commission] COMMISSIONER, shall pay as an
overpayment the full amount of the credit, without interest.
(3) Determination of credit. (A) For qualified taxpayers who have
attained the age of sixty-five years OR A PERMANENT AND TOTAL DISABILITY
AS DEFINED IN SECTION TWENTY-TWO OF THE INTERNAL REVENUE CODE before the
beginning of or during the taxable year the amount of the credit allow-
able under this subsection shall be fifty percent, or in the case of a
qualified taxpayer who has elected to include an additional amount
pursuant to subparagraph (E) of paragraph one of this subsection, twen-
ty-five percent, of the excess of real property taxes or the excess of
real property tax equivalent determined as follows:
Excess real property taxes are
the excess of real property tax
equivalent or the excess of
If household gross qualifying real property taxes
income for the over the following percentage of
taxable year is: household gross income:
___________________ __________________________________
[$3,000] $6,000 or less 3 1/2
Over [$3,000] $6,000 but not
over [$5,000] $10,000 4
Over [$5,000] $10,000 but not
over [$7,000] $14,000 4 1/2
Over [$7,000] $14,000 but not
over [$9,000] $18,000 5
Over [$9,000] $18,000 but not
over [$11,000] $22,000 5 1/2
Over [$11,000] $22,000 but not
over [$14,000] $28,000 6
Over [$14,000] $28,000 but not
over [$18,000] $36,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross The maximum
income for the credit is:
taxable year is:
___________________ __________________________________
[$1,000] $2,000 or less [$375] $463
Over [$1,000] $2,000 but
not over [$2,000] $4,000 [$358] $442
Over [$2,000] $4,000 but
not over [$3,000] $6,000 [$341] $421
Over [$3,000] $6,000 but
not over [$4,000] $8,000 [$324] $400
Over [$4,000] $8,000 but
not over [$5,000] $10,000 [$307] $379
Over [$5,000] $10,000 but
S. 1601--A 5 A. 939--A
not over [$6,000] $12,000 [$290] $358
Over [$6,000] $12,000 but
not over [$7,000] $14,000 [$273] $337
Over [$7,000] $14,000 but
not over [$8,000] $16,000 [$256] $316
Over [$8,000] $16,000 but
not over [$9,000] $18,000 [$239] $295
Over [$9,000] $18,000 but
not over [$10,000] $20,000 [$222] $274
Over [$10,000] $20,000 but
not over [$11,000] $22,000 [$205] $253
Over [$11,000] $22,000 but
not over [$12,000] $24,000 [$188] $232
Over [$12,000] $24,000 but
not over [$13,000] $26,000 [$171] $211
Over [$13,000] $26,000 but
not over [$14,000] $28,000 [$154] $190
Over [$14,000] $28,000 but
not over [$15,000] $30,000 [$137] $169
Over [$15,000] $30,000 but
not over [$16,000] $32,000 [$120] $148
Over [$16,000] $32,000 but
not over [$17,000] $34,000 [$103] $127
Over [$17,000] $34,000 but
not over [$18,000] $36,000 [$86] $106
(B) For all other qualified taxpayers the amount of the credit allow-
able under this subsection shall be fifty percent of excess real proper-
ty taxes or the excess of the real property tax equivalent determined as
follows:
Excess real property taxes are
the excess of real property tax
equivalent or the excess of
If household gross qualifying real property taxes
income for the over the following percentage of
taxable year is: household gross income:
___________________ __________________________________
[$3,000] $6,000 or less 3 1/2
Over [$3,000] $6,000 but not
over [$5,000] $10,000 4
Over [$5,000] $10,000 but not
over [$7,000] $14,000 4 1/2
Over [$7,000] $14,000 but not
over [$9,000] $18,000 5
Over [$9,000] $18,000 but not
over [$11,000] $22,000 5 1/2
Over [$11,000] $22,000 but not
over [$14,000] $28,000 6
Over [$14,000] $28,000 but not
over [$18,000] $36,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross The maximum
income for the credit is:
taxable year is:
S. 1601--A 6 A. 939--A
___________________ __________________________________
[$1,000] $2,000 or less [$75] $163
Over [$1,000] $2,000 but
not over [$2,000] $4,000 [$73] $158
Over [$2,000] $4,000 but
not over [$3,000] $6,000 [$71] $154
Over [$3,000] $6,000 but
not over [$4,000] $8,000 [$69] $149
Over [$4,000] $8,000 but
not over [$5,000] $10,000 [$67] $145
Over [$5,000] $10,000 but
not over [$6,000] $12,000 [$65] $140
Over [$6,000] $12,000 but
not over [$7,000] $14,000 [$63] $136
Over [$7,000] $14,000 but
not over [$8,000] $16,000 [$61] $132
Over [$8,000] $16,000 but
not over [$9,000] $18,000 [$59] $128
Over [$9,000] $18,000 but
not over [$10,000] $20,000 [$57] $123
Over [$10,000] $20,000 but
not over [$11,000] $22,000 [$55] $119
Over [$11,000] $22,000 but
not over [$12,000] $24,000 [$53] $115
Over [$12,000] $24,000 but
not over [$13,000] $26,000 [$51] $110
Over [$13,000] $26,000 but
not over [$14,000] $28,000 [$49] $106
Over [$14,000] $28,000 but
not over [$15,000] $30,000 [$47] $102
Over [$15,000] $30,000 but
not over [$16,000] $32,000 [$45] $97
Over [$16,000] $32,000 but
not over [$17,000] $34,000 [$43] $93
Over [$17,000] $34,000 but
not over [$18,000] $36,000 [$41] $89
(4) If a qualified taxpayer occupies a residence for a period of less
than twelve months during the taxable year or occupies two or more resi-
dences during different periods in such taxable year, the credit allowed
pursuant to this subsection shall be computed in such manner as the [tax
commission] COMMISSIONER may, by regulation, prescribe in order to prop-
erly reflect the credit or portion thereof attributable to such resi-
dence or residences and such period or periods.
(5) The [tax commission] COMMISSIONER may prescribe that the credit
under this subsection shall be determined in whole or in part by the use
of tables prescribed by such [commission] COMMISSIONER. Such tables
shall set forth the credit to the nearest dollar.
(6) Only one credit per household and per qualified taxpayer shall be
allowed per taxable year under this subsection. When two or more
members of a household are able to meet the qualifications for a quali-
fied taxpayer, the credit shall be equally divided between or among such
individuals unless such individuals file with the [tax commission]
COMMISSIONER a written agreement among such individuals setting forth a
different division. Where two or more members of a household are able
to meet the qualifications of a qualified taxpayer and one of them is
sixty-five years of age or more OR HAS A PERMANENT AND TOTAL DISABILITY,
S. 1601--A 7 A. 939--A
the credit which may be taken shall be the credit applicable to individ-
uals who have attained the age of sixty-five years.
(A) Provided, however, where a joint income tax return has been filed
pursuant to the provisions of section six hundred fifty-one OF THIS
ARTICLE by a qualified taxpayer and his OR HER spouse (or where both
spouses are qualified taxpayers and have filed such joint return), the
credit, or the portion of the credit if divided, to which the husband
and wife are entitled shall be applied against the tax of both spouses
and any overpayment shall be made to both spouses.
(B) Where any return required to be filed pursuant to the provisions
of section six hundred fifty-one OF THIS ARTICLE is combined with any
return of tax imposed pursuant to the authority of this chapter or any
other law if such tax is administered by the [tax commission] COMMIS-
SIONER, the credit or the portion of the credit if divided, allowed to
the qualified taxpayer may be applied by the [tax commission] COMMIS-
SIONER toward any liability for the aforementioned taxes.
(7) No credit shall be granted under this subsection:
(A) If household gross income for the taxable year exceeds [eighteen]
THIRTY-SIX thousand dollars.
(B) To a property owner unless: (i) the property is used for residen-
tial purposes, (ii) not more than twenty percent of the rental income,
if any, from the property is from rental for nonresidential purposes and
(iii) the property is occupied as a residence in whole or in part by one
or more of the owners of the property.
(C) To a property owner who owns real property FOR OVER TWO YEARS, the
full value of which exceeds [eighty-five thousand dollars] THE MEDIAN
FULL VALUE OF RESIDENTIAL REAL PROPERTY SALES WITHIN THE COUNTY WHERE IT
IS LOCATED, AS DETERMINED BY THE STATE BOARD OF REAL PROPERTY SERVICES,
OR THE MEDIAN FULL VALUE OF RESIDENTIAL REAL PROPERTY IN THE STATE, AS
DETERMINED BY THE STATE BOARD OF REAL PROPERTY SERVICES, WHICHEVER IS
LESS.
(D) To a tenant if the adjusted rent for the residence exceeds [four]
EIGHT hundred [fifty] dollars per month on average.
(E) To an individual with respect to whom a deduction under subsection
(c) of section one hundred fifty-one of the internal revenue code is
allowable to another taxpayer for the taxable year.
(F) With respect to a residence that is wholly exempted from real
property taxation.
(G) To an individual who is not a resident individual of the state for
the entire taxable year.
(H) WHERE A HOUSEHOLD OR QUALIFIED TAXPAYER HAS CLAIMED AN EARNED
INCOME TAX CREDIT PURSUANT TO THIS SECTION.
(I) TO AN INDIVIDUAL WHOSE HOUSEHOLD GROSS INCOME IS MORE THAN EIGHTY
PERCENT OF THE STATE MEDIAN FAMILY INCOME.
(8) The right to claim a credit or the portion of a credit, where
such credit has been divided under this subsection, shall be personal to
the qualified taxpayer and shall not survive his OR HER death, but such
right may be exercised on behalf of a claimant by his OR HER legal guar-
dian or attorney in fact during his OR HER lifetime.
(9) Returns. If a qualified taxpayer is not required to file a return
pursuant to section six hundred fifty-one OF THIS ARTICLE, a claim for a
credit may be taken on a return filed with the [tax commission] COMMIS-
SIONER within three years from the time it would have been required that
a return be filed pursuant to such section had the qualified taxpayer
had a taxable year ending on December thirty-first. Returns under this
paragraph shall be in such form as shall be prescribed by the [tax
S. 1601--A 8 A. 939--A
commission] COMMISSIONER, which shall make available such forms and
instructions for filing such returns.
(10) Proof of claim. The [tax commission] COMMISSIONER may require a
qualified taxpayer to furnish the following information in support of
his claim for credit under this subsection: household gross income,
rent paid, name and address of owner or managing agent of the property
rented, real property taxes levied or that would have been levied in the
absence of an exemption from real property tax pursuant to section four
hundred sixty-seven of the real property tax law, the names of members
of the household and other qualifying taxpayers occupying the same resi-
dence and their identifying numbers including social security numbers,
household gross income, size and nature of property claimed as residence
and all other information which may be required by the [tax commission]
COMMISSIONER to determine the credit.
(11) Administration. The provisions of this article, including the
provisions of section six hundred fifty-three, six hundred fifty-eight,
and six hundred fifty-nine and the provisions of part six of this arti-
cle relating to procedure and administration, including the judicial
review of the decisions of the [tax commission] COMMISSIONER, except so
much of section six hundred eighty-seven OF THIS ARTICLE which permits a
claim for credit or refund to be filed after the period provided for in
paragraph nine of this subsection and except sections six hundred
fifty-seven, six hundred eighty-eight and six hundred ninety-six OF THIS
ARTICLE, shall apply to the provisions of this subsection in the same
manner and with the same force and effect as if the language of those
provisions had been incorporated in full into this subsection and had
expressly referred to the credit allowed or returns filed under this
subsection, except to the extent that any such provision is either
inconsistent with a provision of this subsection or is not relevant to
this subsection. As used in such sections and such part, the term
"taxpayer" shall include a qualified taxpayer under this subsection and,
notwithstanding the provisions of subsection (e) of section six hundred
ninety-seven OF THIS ARTICLE, where a qualified taxpayer has protested
the denial of a claim for credit under this subsection and the time to
file a petition for redetermination of a deficiency or for refund has
not expired, he OR SHE shall, subject to such conditions as may be set
by the [tax commission] COMMISSIONER, receive such information (A) which
is contained in any return filed under this article by a member of his
OR HER household for the taxable year for which the credit is claimed,
and (B) which the [tax commission] COMMISSIONER finds is relevant and
material to the issue of whether such claim was properly denied. The
[tax commission] COMMISSIONER shall have the authority to promulgate
such rules and regulations as may be necessary for the processing,
determination and granting of credits and refunds under this subsection.
(13) Notwithstanding any other provision of this article, the credit
allowed under this subsection shall be determined after the determi-
nation and application of any other credits permitted under the
provisions of this article.
(14) The commissioner [of taxation and finance] 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 president of the senate, the speaker of the
assembly, the chairman of the senate finance committee and the chairman
S. 1601--A 9 A. 939--A
of the assembly ways and means committee within sixty days of July thir-
ty-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; and of those, the number
of credits and the average amount of such credits allowed to qualified
taxpayers in each county; and of those, the number of credits and the
average amount of such credits allowed to qualified taxpayers whose
household gross income falls within each of the household gross income
ranges set forth in paragraph three of this subsection; and of those,
the number of credits and the average amount of such credits allowed to
qualified taxpayers whose credit amount falls within credit amount rang-
es set forth in twenty-five dollar increments.
§ 2. Paragraph 3 of subsection (e) of section 606 of the tax law, as
amended by section one of this act, is amended to read as follows:
(3) Determination of credit. (A) For qualified taxpayers who have
attained the age of sixty-five years or a permanent and total disability
as defined in section twenty-two of the internal revenue code before the
beginning of or during the taxable year the amount of the credit allow-
able under this subsection shall be fifty percent, or in the case of a
qualified taxpayer who has elected to include an additional amount
pursuant to subparagraph (E) of paragraph one of this subsection, twen-
ty-five percent, of the excess of real property taxes or the excess of
real property tax equivalent determined as follows:
Excess real property taxes are
the excess of real property tax
equivalent or the excess of
If household gross qualifying real property taxes
income for the over the following percentage of
taxable year is: household gross income:
___________________ __________________________________
$6,000 or less 3 1/2
Over $6,000 but not
over $10,000 4
Over $10,000 but not
over $14,000 4 1/2
Over $14,000 but not
over $18,000 5
Over $18,000 but not
over $22,000 5 1/2
Over $22,000 but not
over $28,000 6
Over $28,000 but not
over $36,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross The maximum
income for the credit is:
taxable year is:
___________________ __________________________________
$2,000 or less [$463] $550
Over $2,000 but
not over $4,000 [$442] $525
Over $4,000 but
S. 1601--A 10 A. 939--A
not over $6,000 [$421] $500
Over $6,000 but
not over $8,000 [$400] $475
Over $8,000 but
not over $10,000 [$379] $450
Over $10,000 but
not over $12,000 [$358] $425
Over $12,000 but
not over $14,000 [$337] $400
Over $14,000 but
not over $16,000 [$316] $375
Over $16,000 but
not over $18,000 [$295] $350
Over $18,000 but
not over $20,000 [$274] $325
Over $20,000 but
not over $22,000 [$253] $300
Over $22,000 but
not over $24,000 [$232] $275
Over $24,000 but
not over $26,000 [$211] $250
Over $26,000 but
not over $28,000 [$190] $225
Over $28,000 but
not over $30,000 [$169] $200
Over $30,000 but
not over $32,000 [$148] $175
Over $32,000 but
not over $34,000 [$127] $150
Over $34,000 but
not over $36,000 [$106] $125
(B) For all other qualified taxpayers the amount of the credit allow-
able under this subsection shall be fifty percent of excess real proper-
ty taxes or the excess of the real property tax equivalent determined as
follows:
Excess real property taxes are
the excess of real property tax
equivalent or the excess of
If household gross qualifying real property taxes
income for the over the following percentage of
taxable year is: household gross income:
___________________ __________________________________
$6,000 or less 3 1/2
Over $6,000 but not
over $10,000 4
Over $10,000 but not
over $14,000 4 1/2
Over $14,000 but not
over $18,000 5
Over $18,000 but not
over $22,000 5 1/2
Over $22,000 but not
over $28,000 6
Over $28,000 but not
over $36,000 6 1/2
S. 1601--A 11 A. 939--A
Notwithstanding the foregoing provisions, the maximum credit deter-
mined under this subparagraph may not exceed the amount determined in
accordance with the following table:
If household gross The maximum
income for the credit is:
taxable year is:
___________________ __________________________________
$2,000 or less [$163] $250
Over $2,000 but
not over $4,000 [$158] $243
Over $4,000 but
not over $6,000 [$154] $237
Over $6,000 but
not over $8,000 [$149] $230
Over $8,000 but
not over $10,000 [$145] $223
Over $10,000 but
not over $12,000 [$140] $217
Over $12,000 but
not over $14,000 [$136] $210
Over $14,000 but
not over $16,000 [$132] $203
Over $16,000 but
not over $18,000 [$128] $197
Over $18,000 but
not over $20,000 [$123] $190
Over $20,000 but
not over $22,000 [$119] $183
Over $22,000 but
not over $24,000 [$115] $177
Over $24,000 but
not over $26,000 [$110] $170
Over $26,000 but
not over $28,000 [$106] $163
Over $28,000 but
not over $30,000 [$102] $157
Over $30,000 but
not over $32,000 [$97] $150
Over $32,000 but
not over $34,000 [$93] $143
Over $34,000 but
not over $36,000 [$89] $137
§ 3. This act shall take effect immediately; provided, however, that
section two of this act shall take effect January 1, 2020.
