Senate Bill S7201A

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7201--A
 
                             I N  S E N A T E
 
                              January 3, 2018
                                ___________
 
 Introduced  by  Sens.  GOLDEN, MURPHY -- read twice and ordered printed,
   and when printed to be committed to the  Committee  on  Investigations
   and  Government  Operations  --  committee  discharged,  bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to  establishing  a  state  and
   local taxes 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) STATE AND LOCAL TAXES CREDIT. (1) ALLOWANCE OF CREDIT. FOR TAXA-
 BLE  YEARS  BEGINNING  ON AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN
 AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-SIX, A  RESIDENT  TAXPAYER
 WHO  ITEMIZED  HIS  OR  HER  DEDUCTIONS ON HIS OR HER FEDERAL INCOME TAX
 RETURN SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS  PROVIDED  IN  PARA-
 GRAPH THREE OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE,
 FOR ALLOWABLE STATE AND LOCAL TAXES.
   (2)  THE  TERM  "ALLOWABLE STATE AND LOCAL TAXES" SHALL MEAN THE TAXES
 IMPOSED BY A POLITICAL SUBDIVISION OF THIS STATE THAT  WOULD  HAVE  BEEN
 DEDUCTIBLE  PURSUANT  TO  PARAGRAPHS  ONE AND THREE OF SUBSECTION (A) OF
 SECTION ONE HUNDRED SIXTY-FOUR OF THE  INTERNAL  REVENUE  CODE  FOR  THE
 TAXABLE  YEAR  ENDING DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN LESS
 THE LIMITATION IMPOSED BY PARAGRAPH SIX OF SUBSECTION (A) OF SECTION ONE
 HUNDRED SIXTY-FOUR OF THE SAME INTERNAL REVENUE CODE.
   (3) COMPUTATION OF CREDIT. THE AMOUNT OF CREDIT ALLOWABLE PURSUANT  TO
 THIS  SUBSECTION  SHALL EQUAL THE ALLOWABLE STATE AND LOCAL TAXES MULTI-
 PLIED BY THE RATE OF TAX IMPOSED ON  THE  TAXPAYER'S  NEW  YORK  TAXABLE
 INCOME PURSUANT TO SECTION SIX HUNDRED ONE OF THIS ARTICLE.
   (4)  REFUNDABILITY.  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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14091-03-8

 S. 7201--A                          2
 
   (5)  LIMITATION. NO CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION TO A
 TAXPAYER WHO ITEMIZES HIS OR HER DEDUCTIONS ON HIS OR HER NEW YORK STATE
 PERSONAL INCOME TAX RETURN AND DOES NOT ADD BACK  THE  AMOUNT  OF  LOCAL
 PROPERTY  AND  INCOME  TAXES  DEDUCTED  ON HIS OR HER FEDERAL INCOME TAX
 RETURN  PURSUANT  TO  PARAGRAPH  TEN  OF  SUBSECTION  (C) OF SECTION SIX
 HUNDRED FIFTEEN OF THIS ARTICLE.
   § 2. Subsection (c) of section 615 of the tax law is amended by adding
 a new paragraph 10 to read as follows:
   (10) REAL PROPERTY TAXES AND INCOME TAXES, AS  DEFINED  IN  PARAGRAPHS
 ONE AND THREE OF SUBSECTION (A) OF SECTION ONE HUNDRED SIXTY-FOUR OF THE
 INTERNAL REVENUE CODE FOR THE TAXABLE YEAR ENDING DECEMBER THIRTY-FIRST,
 TWO  THOUSAND SEVENTEEN, IMPOSED BY A TAXING JURISDICTION OTHER THAN THE
 STATE TO THE EXTENT SUCH TAXES WERE DEDUCTED AS AN ITEMIZED DEDUCTION ON
 HIS OR HER FEDERAL INCOME TAX RETURN.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.